General insurance claims are now likely to get settled faster as the regulator has raised the claims limit for hiring external surveyors to ₹50,000 for motor insurance and 1 lakh for other types of insurance.
The earlier limit was ₹20,000 for all types of claims. The Insurance Regulatory and Development Authority of India (IRDAI) said that it will review this limit every three years.
“Claim settlement now can be done much faster using our internal surveyor teams. External surveyors typically are overburdened as they serve many companies which may result in delays,” said SS Gopalarathnam, Managing Director, Cholamandalam MS General Insurance. The move to increase the surveyor limits follows the relaxations allowed by the regulator during the Jammu and Kashmir and Uttarakhand floods, which caused large-scale damage to property and vehicles.
Sanjay Datta, Chief, Underwriting, said that insurers now have a choice on whether they would want to appoint a surveyor or not depending on the complexity of the claims. He said, especially during natural calamities, insurers will be able to disburse claims faster without waiting for the report of external surveyors.
Insurance industry officials also say that since the frequency of claims is higher in motor insurance, insurers will be able to appoint automobile experts in-house to settle the claims. According to Praveen Vashishta, Chairman of Howden Insurance Brokers, the limits were meant to be set for a reasonable amount adjusted to inflation. However, at present even if a small part in a car gets damaged, the figure could cross ₹50,000.
He added that the logic behind having external surveyors is that they bring in neutrality in the interest of customers. However, even though they are supposed to be an independent neutral party, they are remunerated by the insurer.
[Source: https://generalinsurancesite.wordpress.com/2016/01/30/general-insurance-claims-likely-to-get-settled-faster/]
The earlier limit was ₹20,000 for all types of claims. The Insurance Regulatory and Development Authority of India (IRDAI) said that it will review this limit every three years.
“Claim settlement now can be done much faster using our internal surveyor teams. External surveyors typically are overburdened as they serve many companies which may result in delays,” said SS Gopalarathnam, Managing Director, Cholamandalam MS General Insurance. The move to increase the surveyor limits follows the relaxations allowed by the regulator during the Jammu and Kashmir and Uttarakhand floods, which caused large-scale damage to property and vehicles.
Sanjay Datta, Chief, Underwriting, said that insurers now have a choice on whether they would want to appoint a surveyor or not depending on the complexity of the claims. He said, especially during natural calamities, insurers will be able to disburse claims faster without waiting for the report of external surveyors.
Insurance industry officials also say that since the frequency of claims is higher in motor insurance, insurers will be able to appoint automobile experts in-house to settle the claims. According to Praveen Vashishta, Chairman of Howden Insurance Brokers, the limits were meant to be set for a reasonable amount adjusted to inflation. However, at present even if a small part in a car gets damaged, the figure could cross ₹50,000.
He added that the logic behind having external surveyors is that they bring in neutrality in the interest of customers. However, even though they are supposed to be an independent neutral party, they are remunerated by the insurer.
[Source: https://generalinsurancesite.wordpress.com/2016/01/30/general-insurance-claims-likely-to-get-settled-faster/]