Is an insurance surveyor's report binding? ( news in BS)

[Naresh Kukkar]

Is an insurance surveyor's report binding?
Jehangir Gai / Jun 21, 2012, 00:28 IST

Several consumer forums treat the report of an insurance surveyor as a sacrosanct document and accept it without question. This is not correct. The surveyor's report is undoubtedly an important document that has to be given due consideration as the surveyor is an independent expert. It is generally binding, unless the flaws therein can be substantiated and proved. I will deal with two judgments of the National Commission on this issue.

Sri Chakaravarthi Enterprises, a firm, had insured two of its rice mills, buildings, and stocks lying in the godown and in the open. The policy was for Rs 23 lakh and covered risk against fire, storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation. During a cyclone, the rice mills' buildings along with paddy stocks, boiled rice, raw rice, broken rice, bran and empty gunny bags were damaged. A claim was lodged with the insurance company.

In its complaint before the district forum, the firm alleged the representative of the insurance company, who visited the site along with the surveyor, did not bother to assess the loss and instead made unlawful demands. The firm refused to comply with the demand and complained to the insurance company about the surveyor. The insurance company assured the claim would be settled on the basis of documents and there was no cause of worry. Documents in support of the claim were submitted after getting the estimate of loss certified by the mandal revenue officer (MRO).

After considerable delay, the claim was rejected on the ground that there was nothing to substantiate the loss had been caused due to the cyclone. This conclusion was arrived at as the surveyor had reported that physical verification of the stocks had not been given and the photographs submitted did not indicate presence of rainwater. The firm admitted the physical verification of the stock has not been given, but claimed this was because the stock had to be disposed off before the expiry of the transport permit.

The district forum dismissed the complaint. The firm appealed to the state commission, which partially allowed the claim. The matter, thus, reached the National Commission with the insurance company filing a revision petition.

The Commission observed at least some part of the stock should have been preserved for physical verification. The surveyor's report is a credible piece of evidence unless proved otherwise. In this case, the firm was unable to produce any credible evidence to controvert the findings of the surveyor. There was no evidence to substantiate the allegation of the demand for a bribe by the surveyor. Accordingly, the National Commission set aside the order of the state commission and upheld the district forum's order dismissing the complaint.

The other case is of Lt Col Randhawa Singh. Singh's vehicle, insured with United India Insurance, met with an accident, and the surveyor failed to give a copy of his report to Singh. Although the claim was for Rs 1 lakh, the surveyor persuaded Singh to accept Rs 75,000 on a cash-loss basis so that the matter was settled within a month. However, the claim was not paid. Instead various excuses were made, including disputing the validity of his driving licence, to avoid settlement of the claim. Singh claimed adequate compensation should be granted as he was a serving officer who had been inconvenienced and harassed by the insurance company.

While deciding the revision petition, the National Commission observed the recommendation of the surveyor might carry some weight in the determination of the compensation. But it is not sacrosanct or binding. Considering the totality of the circumstances, the Commission held a lump sum compensation of Rs 2 lakh would meet the ends of justice.

So, the correctness of a survey report can be disputed, if there is evidence to establish that it is incorrect

--
Naresh  Kumar Kukkar
Jalalabad( W), Punjab
nku...@gmail.com
01638-254054
09814706491

[Denesh Saxena]

Dear Sri Kukkar & All,

What can be learnt from the two cases quoted by Sri Naresh Kukkar that
correct thing is always right & incorrect thing is always wrong.

So we have to be very correct & conclusive in recommending the various
losses / claims or say survey reports as per merits only and without
feeling any pressure.

Brgds

DKS (D.K. SAXENA)
(HALDWANI)

> --
> You received this message because you are subscribed to the Google Groups
> "Insurance surveyors" group.
> To post to this group, send email to insurance...@googlegroups.com.
> To unsubscribe from this group, send email to
> insurance_surve...@googlegroups.com.
> For more options, visit this group at
> http://groups.google.com/group/insurance_surveyors?hl=en.
>
>

[Vijay kumar Khandelwal-Indore(MP)]

Dear Sir, 

In present scenerio, surveyor work is like to walk on Edge of sword. First repairer is more powerful for earning lot of profit from the claim with all repacement reqd even it is repairable or not justified. If he fails in that, he encourages insured to pressurise surveyor to act in manner wanted by repairer. If insured fails in that, he then uses either hook of his agent or crook by dadagiri & further complains to Insurer that surveyor is demanding money. Insurer officer in most of the claims are not helping & say that insured should not come with complaint. You are free to assess the loss with " justified assessment". 

What all above means ? In my 23 yrs carrier of Survey job, I learnt that do not make commitment to insured, nothing to be given in writing & try to salve the problems with repairer help in knowledge to insurer claim officer.

Some claim officer have high ego & needs your chamchagiri for giving claims & some behave like " Kam Ke Badle Anaj"

Now it depends on you how to tackle the situation . If you find that his NO is END of profession, it is not like that becos

NO  means  Next Oppartunity   &     END means  Effort Never Dies.

Good relations bring the work over mobile & waiting for you for days delay.

If officer is highly egoed person, you do whatever chamchagiri, personal daily request but he is not going to give you work but even he will enjoy situation.  Believe in God who is worried for whole universe problems but things takes its own time to solve the problem. Work with positive attitude without woorying for the outcome which is unknown but be carefull to handle people. A surveyor should always assess the loss with maximum satisfaction to insurer & satisfaction to insured with no problems mentioned in report. Recently I used a word passanger in TL claim of one Indica Car( neither insured nor his relatives were sitted in car during accident) & insurer manager told insured that YOUR surveyor has written that passangers were sitted in your car & thus car was running in hire asTaxi & claim is not payable. If he had written persons   

we would have not investigated the fact though TP death are there & it needs investigation but despite of it, all thikra of claim is blowing my head. It does not mean that I should quarrel with insurer but I told insured that you get it in writting but Insured mind has already setup that Manager is correct & surveyor has wrongly commented.

Be  careful in prepairing the report with minimum headles to pass the claim.

Thanks with regards