Insurance Surveyors and Loss Assessors (Licensing, Professional Requirement

TI-IE GALEnlcOl· INDI/\ EXl RJ\ORDINARY INSURANCF. REGULATORY AND DEVELOPMF'iT At:THORITI NOTll'ICATION !\cw Delhi, 1hc 201h '-Jovc111bcr 2000 ln,urance Suncyors and Lo~, As,cs,ors (Liccntinj!. Profcssionnl Rcquircn,cnts and Code of Conduct) Rcgulati11n,. ?Ollll F'. No. IRD/\/Rcj!./11/20110.- In exercise of 1hc powers conferred by sccttons 42D. 64UM and I 14A of the Insurance A-Cl, 19S8T4 of 1938) ~nd section 26 of u,c Insurance Regulatory and Devclopmen1 Au1hority Ac~ 1999 (4 1 of 1999). 1he Autho, ii). in consuhation ,_,th the Insurance Advisory Comm111se, hereby makes 1he following regula1io11s, n,unel)':• CHAPTJ.::R I PRELlll-·11N.\RY I. Short rit(e, commencrmtnl anti application ( I J These regula1ions may be called the ln;urance S1mcyol' anJ Lo» Assessors (Licencing, Professional Requiremen1sand Code ofConduc1) Regular,ons. 2000 (2) They shall come into force on the dare of their publicauon in the Olficral Gazcue and shall apply 10 all licensed insurance surveyors nnd l<>SS assessors. 2. Definitions.- In 1hc.se regulatious. unless the context otht:n'-·ist requires.• (a) "'Act" means the Insurance Act. 1938 (4 of 19,8). (b) "applicnnr· means any petS<>n who applies for rhc grant of•• surveyor's and los~ asscssQr's licence or renewal ,hereof; (c) ··Authority" means 1hc Insurance Regulatory and Ocvdoprnent Authority established under sub• section ( I) of section 3 of 1he Insurance Regu la1ory and Development Authority Ac~ 1999 (4 1 of I 999); ' (d) "Designated Person•· means an omcer of the J\ulhorit~ dct>ikd by rhe Authority 10 doscharge the funcuons assigned to h,m under all or any of1hesc rcg1ila1ions, (e) "Inspecting Authorl1y" 11,cans lhe pcrson(s) appoin1ed by the Authority 10 inspect and investigate the affairs of any surveyor and loss a~~essor; (f) "IRDA Act" means the Insurance Rcgula101y and Dcvelopmenl Aulhority Acl, 1999 (4 1 of 1999): (&l wcrd, and expressions used and not defined in these regulations bul defined ,n the Insurance Act. 1938 (4 of 1938) or lnsurnnce Regula1ory and Development Authority Acl, 1999 (41 of 1999) or the General Insurance Busrness (Natio11alisa1ion) Act, 19i2 (57 of 1972). or in an) rules or regulations made under tho,e ActS, shall have 1hc meanings respecuvely assigned to 1hem in !hose Acts or rules or regulations. as 1he case may be .. 1 - - - J CHAPTER II LICENSING PROCEDURE 3. Application for. nnd matters rcla1iug to, granl of licence ( I) Every person who is an inJividual and in1ending 10 act a, a surveyor and loss assessor in respect of general Insurance business shall apply 10 the Au1hori1y for gl'aill of licence in FORM-I RDA• I• Ai' as given ,n the Schedule Lo these regulations. (2) The Authority shall, bcforc granting licence, take into consideration all matters relating 10 the duties, responsibilities anJ !'unctions or surveyor and loss assessor and satisfy itself that the applicant is a fir and proper person lo be gra.nted n licence. In particular and without prejudice 10 the foregoing. the Authority shall satisfy itself that the applicam, in addition 10 submitting the application complete in all respects:• (a) satisfies all the applicable requ1l'emoms ofscetion 64UM read wi1h section 42D of1he Act and rule 56A of the Insurance l(ules, 1939: (b) possesses such additional technical qual llicatio,1s as may bt spccitocd by the Authority from time to time: (c) has furnished evidence of payment of fees for grant of licence. depending upon the categorisation; (d) has undergone a peri<>d of practical 1rainrng, not c,cceding 12 months, as contained in Chapter VII of these regulations: and (e) furnishes such add11ion,1I 111fonnation a, may be rcquir<d by the Authority from time to time. (J) The Authority on being ,atisii~d 1hat Lhc applicant is cligibk for grant of licence. shall grant the same in FORM-IRDA-2-LF d> given in the Schedule LO 1hese regulations and send nn intimation Lo Ll1e applicant together with an identity card mentioning the panicular class or category of general ins1,Jrance business namely. fire, marine cargo. marine hull. engineering.~ motor. misccUancous and loss uf profit for which the Authority has granted licence and the licence shall remain valid for a period of five years from the Ja1e of issue thereof, unless cancelled earlier. (4) A surveyor and loss assessor, whose licence has been cancclkd or suspended for any reason, may subn1i1 an applica1ion for issunnce of licence. alkr the expiry or three years from the dale of such cancella1ion or suspension, and, such an application shall be treated as a fresh case. and, accordingly, the applicant shall satisfy all the requirements of,ub-regulaiion (2). (5) A surveyor and loss assessor shall be subjec1 to cmegorisation as specified in Chapter V of these regulations. (6) A licence issued, before the commencement of these regulations. by the Controller of Insurance or his au1horised representative shall be deen,ed to have been issued in accordance with 1hese regulations. 4. Corporate Surveyors and Loss Assessors ( I) Where the nppl icant is a company or flrm, the Authority shall be satisfied that all the directors or panncrs, as the case may be. possess one or more of 1he qualifications specified in section 64UM( l)D(i) of the Act and none of such directors or partners. as the case may be, suffers from any of the disqualifications memioncd in section 42 D of the Act read with Section 42(4) of the AcL (2) The applicant referred to in ( I) shall apply in FORM-IRDA-3-AF as given in the Schedule to these regulations, )5 36 THE GAZETTE OF !NOIA : EXTRAORDINARY ll',\J<T 111- SEc 4 I (3) The Authority on being satisfied that the applicant is eligible for grant of licence, shall grant the same in FORM-IROA-4-LF as given in the Schedule 10 these regulations. and. all the provisions of regulation 3 above, shall apply mutalis murandis to corporate surveyors. 5. F'tt Structure On and &om May I, 200 I, the fee payable to the Authority by fresh applicanis for grant of licence to act as surveyors and loss assessors, category wise, shall be as stated In lhe following table: S. No. Category of surveyor and loss assessor I. 2. 3. A 8 C Amount payable by individuals Amount payable by Corporate Rs. Ten thousand Seven thousand five hundred Five thousand Surveyor and Loss Assessor Rs, Twenty five thous.ind Twen!)' thousand Fifteen thousand 6. Application to conform to lhe requirements Any incomplete application not conforming to the requir~menis of these regulations shall be rejec1ed. Provided that before rejecti11g any such applscniion, lhe appliran1 shall be given a reasonable opportunity 10 make goO<! lhc applica1ion. 7. Renewal or licence ( I) An insurance surveyor and loss assessor, desiring to renew rhc licence granted earlier, either under these regulations or prior to 1he conunenceme111 of1hese rcgulmions, shall apply ro 1he Authority a1leas1 lhirty days before the expiry of rhe period of validity 1hcreof. in FORM-IRDA-5-AF (for individuals)/ FORM-IRDA-6-AF (for corporate surveyors) ;as given in lbe Schedule ro these regulations, aJongwlth a rentwal fee of two hu11drcd rupees Provided that the Authority may, if ir is sac is tied 1hn1 undue hardship would be caused 01hcrwise, accept any application, w11hin six months oflts expiry on pay111cn1 by 1hc applican1 ofa penally of seven hundred and fifty rupees. Provided further rhar a lice11ce not so renewed can be revalidated only as a fresh case. (2) A licence so renewed shall be valid for five years from 1lte daoe of renewal, unless cancelled earlier. The renewed licence shall be in FORM-IRDA-7-LF or FORM-IRDA-S-LF. as the case may be. (3) Every applkanl, be ir an individual or a company or a firm, while applying for renewal of 1he licence shall certify 10 the Authority that he or any of its directors or any of ics partners. as 1he case may be. has: (i) not concravened any of 1hc provisions of the Act or the IRDA Act, or any rules or rcgulailons made under those Acts or any order or dircc1io11 issued by Lhr Au1hori1y: (ii) not made a statement which is false in material particulars with regard 10 his eligibility for the licence or renewal thereof or in any of the activities transacted by him or them or the matters connected therewith as a Surveyor and Loss Assessor; (iii) neither had his licence cancelled or suspended under the Act, nor had violated the Code of Conduct prescribed under these regulations; (iv) discharged the duties and responsibilities as a professional: (v) not been negligent in the discharge of his obligations; (vi) not been sentenced 10 a term of imprisonment by any Coun of law. 8. Procedure where licence is not to be granted or renewed, or where licence is to be suspended or cancelled ( I} Where an applicant does not satisfy the provisions of the Act and these regulations, the Auth<>rity may reject the application for gram of licence or renewal thereof and refund 10 the applicant 1101 more than 60 per cent of the fee received; Provided that no application shall be rejected unless the applicant has been given a reasonable opponunity 10 make good the applicatio11 within a time frame as may be deemed appropriate by the Authority, according to the facts and circumstances of each case. (2) I he refusal shall be communicated ltl the applicant within ~,irty days or such refusal, siating the grounds of rejection. " (3) Where it is found that a surveyor and loss assessor suffers from any of the disqualifications or has ~nowingly contravened auy provisions of the Act or the IROA Ac1. or the rules or regulations made under those Acts or any order or direction or i11s1n1c1ion issued by the Authority. the Authority may, aficr givlng ~ucb surveyor and loss assessor an opponunity of being heard. cancel his licence, wilh effect from such date as ma:,, be specified by it and the Authority shall notify such cancellation in the Official Gazelle. (4) Th(: Authority may refuse 10 grant or ren-:\, licence. or ~uspend or cancel a lict.'nce a.lrcady granted, to a ~urve}1or and loss n%cssor, ifhe:/ it· (i) fails 10 discharge the duties and responsibili11es in a sa1isfoc10ry and professional manner; or ( ii) viola1es the code of conduct prescribed under these rcgu lat ions; or (iii) makes a statement which is false In material pa111culars with regard to the eligibility for obtaining licence or has, alter the issue or renewal ol' such licence, acquired any of the disqualifications provided undtr sub-section (•I) of section 42 or the Act, read with clause D of sub-section (I) of section (>4LJM of the Act Provided th,,t the Authorit) shall g,ve a rc;isonahk opportun11y. to the person concerned, of being heard, before such refusal or suspension or cancdlat,mL The Authority shall no1iry only cancellations in the Otlicial Gazelle. Provided further that the pO\\lrs conferred on the Au1horny in this sub~rcgulation are without prejudice 10 1l1e powers c,•aferre;I on it by sub-secuon (7) of section MUM of the Act. 31 THE GAZETfE OF INDIA: EXTRAORDTNARY [P,\RT Ill-SEC. 4 J (5) The refusal or suspension or cancellation of licence referred to in sub-regulation (4} shall take effect f\-om the date of such refusal, suspension or cancellation, as the case may be, and, no such surveyor and loss assessor shall carry out any survey and loss assessment work thereafter. including the jobs on hand. All such pending jobs shall be returned by him/ it to the insurer or the insured, as the case may be. 9. Suspension of the licence (I) A licensed surveyor and loss assessor whose licence is proposed to be suspended by the Authoriry may be granted an opportunity before suspending the licence. Provided, however. that the Authority may not follow this procedure if the continued employment of the licensed surveyor and loss assessor is considered 10 be detrimental to the cause of insurance underwriting. (2} The period of suspension will be indicated in the order of the Authorily. (3) On receipt of the order of suspension, tbe lice□sed surveyor and loss assessor may file an appeal with the Authority asking for revocation of suspension. The Authority may designate an officer who will hear the representation of the licensed surveyor and loss assessor and make such orders as are deemed fit. The order made in this regard shall be communicated to the suspended surveyor and loss assessor. • (4) If, on 1he basis of the order of the designated person. the Authority restores the licence of the surveyor and loss assessor. it will indicate the date from which the restoralion will take place. (5~ During the period of suspension, the surveyor and [OS$ assessor shall be prohibited from carrying out aay surveys and all wor~ that was handled prior to suspension and has remained incomplete shall be returned 10 an insurer or the insured as the case may be. (6) The licence granted by the Authority may be cancelled by 1hc Authority where the surveyor and loss assessor does nor represent within a period of 45 days from the date of order of suspension. (7) Any order of suspension or revoca1ion of the order thereof shall be intimated to the insurers. 10. Issue of Duplicate Licence/lderttily Card (I} A person to whom a licence has been issued or renewed. shall, if such lice.nee and/or Identity Card is/are lost, destroyed or mutilated, make an application in FORM-IRDA-9 given in the Schedule to these regulations to the Authority requesting for issuance of duplicate thereof. along with a fee of five rupees. (2) The application referred 10 in sub-regulation (I) shall contain ful l particulars of licence/identity card and as 10 how the loss/destruction or mutilation has occurred, and the application shall be accompanied by mutilated pieces, if any. In possession of the person making the application. (3) The Authority, on being satisfied. may issue .a duplicate licence and/or identity card in FORM- IRDA-10-LF a, given in the Schedule co these regulations. (4} The duplicate so issued shall remain in force for the remainder of the period of validity of rhe licence and/or identity card. unless cancelled e:arlier, and the duplicate shall bear an endorsement I hereon chat it is a duplicate • L CHAPTER Ill CONSTITUTION ANO FUNCTIONS OF SURVEYORS AND l,OSS ASSESSORS CO1'1-1MITTEE, I J. Consritution ( I} The Authority $hall constitute a Committee to be called "Surveyors and Loss Assessors C:ommi11ec" (herein after referred LO as "the Comminee"), for assisting the Authority on the matters an<l affairs relating to Insurance Surveyors and Loss Assessors. (2) The Comminee may consist ol'the following pcrsons:- (i) an Ol'ficcr of the Authodty; (ii) two represemativts of the Surveyors and Loss Assessors: (iii) a representative of Insurers: (iv) a represenrative of the policy holders: (3) The Committee will be for a period of three years and will be presided over by the otliccr of the Authority. 12. Functions of the Comm illee.- (I) The Commince shall perform the following functions:- (i) recommending the syllabus for examination and practical training requirements for persons to qualify as surveyors aud toss assessors; (ii) recommending to the Authority for its consideration to recognise foreign qualifications and training for the purposes of grant of licence to ac1 as surveyors and loss assessors; (iii) improving and developing the status and standard of lhe profession of surveyors and loss assessors; (iv) co-ordinating with educational or other institutions, having as their objects, wholly or panly, similar to those of the profession of surveyors and loss assessors, in such ma11ner as may be conducive for the atlainment of comm011 objectives• (v) looking into the matters of profess.ional misconduct, indiscipline, non-adherence to code of conduct by surveyors and loss assessors; and dealing with complaints of insured/insurer in respect of survey work done by surveyors and loss assessors; (vi) discharging any other function, which rnay be entrusted by the Authorily, from time 10 time. (2) The Committee may meet as frequently as necessary to conduct its affairs. (3) The members of the Commi11ee, other than the officer of Authority will be entitled lo such allowances as may be determined by the Authority from time to time. 39