Insurance Survey Storm : Who will get hit the most ?
In Indian Motor Insurance industry, there are over 2 crore claims coming every year. For every claim that is above Rs. 20,000/- there is a mandatory third-party surveyor inspection. Which means that the insurance company has to pay third party surveyors for inspecting the vehicle whenever the claim amount exceeds Rs. 20,000/-
This third party survey is good for the consumer, as the surveyor gives a ‘neutral’ opinion of cost impact, these surveyors also negotiate with the service stations. However, due to the paucity of surveyors (only 11,000 surveyors), it also results in delay of insurance claim processing. Something similar was observed during the floods in Jammu & kashmir and then in uttarakhand, after which IRDA made a temporary relaxation of lifting the survey criteria for these zones.
Now the insurance lobby is pushing IRDA to change the mandatory survey amount from Rs. 20,000/- to Rs. 50,000/- or in some cases, upto a lac. The reason being cited is that there are over 2 crore claims every years, and the number of qualified surveyors are less to fulfil their needs.
Another explanation for this is that with an average ticket size of Rs. 30,000/-, the cost of conducting these surveys is hitting the insurance company hard. Do keep in mind that the motor insurance industry is not making much money in india.
While customers might see a speedy repair, there is also a chance that the internal surveyors might not approve the extent of claims as stated by the authorised service centre. There are provisions for grievance redressal in case that happens.
The biggest disadvantages in this, is for the surveyors. Almost all of them will get impacted if the limit is raised to Rs. 50,000/- since majority of the cases are settled under Rs. 30,000/-
It remains to be seen, when these measures will be approved and enforced, but right now, it is causing a lot of sleepless nights for Surveyors.