The Insurance Regulatory and Development Authority (Irda) on Wednesday issued a draft set of rules to revamp the Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA). The aim is to make it more vibrant, responsible and professional in line with the objectives for which it was incorporated.
IIISLA was set up by Irda to ensure contractual relationship of SLAs with both the insurer and the insured.
Surveyors and loss assessors (SLAs) play an important role in assessing losses in the general insurance business when a contingency insured under the contract of insurance arises.
SLAs are necessary under section 64UM of the Insurance Act, which requires a duly licensed SLA to file a report with respect to any claim where the loss is over Rs 20,000 in value, on a policy issued by any of the general insurers registered with Irda.
The regulator said it was necessary that the institute have its own permanent secretariat and administrative staff to perform the necessary functions delegated to it. Irda has proposed to pay a monthly grant to IIISLA to enable it to have its secretariat.
Irda, in the draft, said membership of IIISLA must be made compulsory for all surveyors who wish to obtain a licence to act as an SLA. Further, it has been proposed that before a surveyor moves from one category to a higher category, he should undergo specified hours of training mandated by IIISLA.
The draft said the profession of SLAs has to be carried in such a manner that not more than 30 per cent of the mandate of assessment of losses was entertained by an individual SLA or an SLA company.
Presently, an applicant seeking an SLA licence should pass an examination conducted by Insurance Institute of India. The proposal, by Irda, is to have IIISLA conduct this exam. Examination by the institute shall continue for some time till IIISLA graduates to that level.
For this, it has been decided that IIISLA should set up a system to conduct practical training, undertake pre-examination online/class room level system of education and training.
Since the membership of all licence holders shall be mandatory in the regulatory provision, Irda advised that IIISA must notify its code of ethics with the prior concurrence of the Irda and ensure that its members comply with the same.
The regulator said the views and comments of the General Insurance Council, IIISLA and observations from other members would need to be given within 15 days so that further steps are taken firmly and quickly.