PLIGHT OF INSURANCE SURVEYORS' PROFESSION vizaviz IRDAS APATHY By:

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IIISLA Call for strike for 7th 8th Dec, 09 
Developments related to this Joint meeting of
Central Council all the Zonal Councils held on
11.11.09 at Nagpur endorsed the protest of 4th
Nov, 09 at Delhi unanimously called for two
days strike for 7th 8th Dec, 09. A call for
the same was given by the President. Ministry of
Finance had taken a notice of these developments
had called for talks. Due to this, the strike
plan was postponed till further notice. A
presentation was given to the Joint Secretary
(Insurance), Ministry of Finance, Govt of
India on the burning issues of IIISLA pending
with IRDA on 1st Dec, 09. The Joint Secretary
gave assurance to look into the matter interact
with IRDA, but at the same time advised us to
concentrate also on other important tasks of
education, training, code of conduct its
enforcement and disciplinary matters incld
redressal of public grievances  etc so that, at
the time of granting of Chartered status, there
is no problem to the concerned authorities.
Presentation is attached herewith for
information of the members.
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PLIGHT OF INSURANCE SURVEYORS' PROFESSION
viz-a-viz IRDAS APATHY By-

• Indian Institute Of Insurance Surveyors Loss
  AssessorsPromoted by IRDA Govt of India

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Indian Institute of Insurance Surveyors Loss
Assessors (IIISLA)

• IIISLA was promoted by IRDA under directions of
  Ministry of Finance, Govt of India to provide
  eventually for a self regulatory body for the
  profession of Surveyors Loss Assessors.
• Management of IIISLA was handed over to its
  elected council in December, 2007.

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• Right from its inception, the elected Council had
  taken up with IRDA for solution of some of the
  basic burning issues of the profession pending
  since categorization done in the year 2000.
• Some more problems had cropped up in the
  profession due to privatization. These were also
  taken up with IRDA and are pending since last 2
  years.
• Insurance Act, 1938 is under process for
  amendment the Surveyors are having their
  apprehensions regarding amendments to provisions
  for their profession under section 64UM.

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OBJECTIVES of PRESENTATION

• To provide for realy independent, competent
  professional surveyors in an insurance
  environment of competition detariffing.
• To provide for continuous monitoring control on
  such Surveyors by some self regulatory
  organisation for sustaining standards.
• The above, in turn, would ensure

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• To enhance customer confidence in insurance and
  its systems.
• To provide for customer protection
• To minimise disputes litigation between the
  Insured the Insurer
• To explore fully the contributions of insurance
  to the growth health of National Economy.

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PRESENT SCENE OF PROFESSION

• CATEGORISATION
• In the year 2000, IRDA categorized Surveyors
  with clear understanding of promotion
  protection of Junior Surveyor who would
  ultimately rise to be a senior surveyor. No
  system of up-gradation is devised till date.
•   Surveyors were asked by IRDA to choose only 3
  departments out of 5 even if they were accredited
  qualified by IRDA for all the 5 departments.
• Some Surveyors had taken stay from courts against
  limit of 3 deptts and are working in all the 5
  deptts. IRDA neither got the stay vacated over
  10 years nor opened the field for all.

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PRESENT SCENE OF PROFESSION

• VIOLATION OF 64 UM
• Insurers Employee Surveyors
• Most of the Private Insurers have their own
  employees who survey assess losses even for
  more than Rs. 20,000/- and are violating the
  Act. 
• Spirit of the Act is to provide for an
  Independent person between the Insured the
  Insurer to assess the loss.
• An employee of Insurer will always be biased in
  favor of his employer.

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PRESENT SCENE OF PROFESSION

• CONTRACT SURVEY
• Some of the firms have started as  Service
  Provider and managed to take Contracts on all
  India basis from private Insurers. Such firms are
  using this profession as a Business whereby
  quality is not maintained and leads to unethical
  practices to the detriment of the consumer. This
  is also violative of sub section 5 of section 64
  UM and the regulations made by IRDA.

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PRESENT SCENE OF PROFESSION

• AMENDMENT OF INSURANCE ACT
• IRDA is proposing to delete section 64 UM of the
  Act bring the profession under control of the
  regulations made by IRDA.
• Experience of the Surveyors for the last 10
  years regarding regulation of the profession by
  IRDA, shows that they have finished the basic
  spirit of the Act which stipulated an independent
  person between the Insured the Insurer to
  interpret the contract.

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PRESENT SCENE OF PROFESSION Contd.

• IRDA is planning to increase above limit of Rs.
  20,000/- to Rs. 1,00,000/- in order to help the
  Private Insurers kill our protest of violation
  of the Act. This would  finish Junior Surveyor
  from Grass Root level as 90 of claims fall under
  Rs. 1 lac. After few years entire profession will
  be finished. This would also finish IIISLA 
  promoted by IRDA at the instance of Govt of
  India.

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IRDAS APATHY

• Surveyors had been pleading with IRDA since the
  year 2000 on categorization matters under the
  aegis of Institute of Insurance Surveyors
  Adjusters (IISA) till 2008 later under the
  banner of IIISLA, but IRDA has paid no heed.
• IIISLA had raised the expectations of the
  Surveyors as the same was promoted by IRDA
  themselves and there are nominees from IRDA, Govt
  of India (Minstry of Finance) General Insurance
  Council in its Board of Directors.

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IRDAS APATHY Contd.

• FRUSTRATION OF MEMBERS
• IRDAs apathy towards representations by IIISLA
  has alienated its members. Out of about 5500
  members, only 3000 members renewed their
  membership this year, it has further gone down
  to only 2300.
• Members are not responding even to the training
  programs of the Institute whereas earlier, we
  used to refuse entry due to capacity constraints.

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IRDAS APATHY Contd.

• Members are pressing IIISLA for demonstrations
  Road shows to press for their representations
  create public opinion against IRDAs inaction

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IIISLA RECOMMENDATIONS

• Categorization to be scrapped in its present form
  of ABC.
• It may be indicated in terms of grades of
  membership of IIISLA as Licentiate, Associate
  Fellow. This may necessitate to make membership
  of IIISLA mandatory. System of up-gradation would
  be automatic as per IIISLA membership
  regulations.
• Limit of 3 departments be removed. Those who
  qualify for more departments have the capacity
  to work in more, should be allowed.

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IIISLA RECOMMENDATIONS

• Insurers employee surveyors should be banned
  from doing survey work in order to provide for
  independent unbiased assessment of losses. It may
  be expressly provided in the act by amendment.
• Contract survey system should be banned as it
  breeds corruption, lowers quality diminishes
  independent assessment to the detriment of the
  consumer.

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IIISLA RECOMMENDATIONS

• Section 64 UM of the Act be retained in the act
  after appropriate amendments in view of the
  experience of privatization. Profession should
  not be brought under IRDA regulations only. If
  necessary, it may be brought under regulations of
  Self regulating organisation of IIISLA.
• Limit of Rs. 20000/- for mandatory requirement of
  independent survey report be abolished
  altogether in order to protect the interests of
  the policy holder.

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