How the IRDAI-proposed higher loss limits will benefit customers while filing insurance claims

Insurance companies believe the IRDAI’s proposed hike in the limits for self-assessment of damages will benefit customers, who may now be able to report higher value damages on their own without having to wait for days for a surveyor.

The proposed changes will apply not only to motor damage, but also other losses such as fire, marine, and home insurance claims. The exposure draft of the IRDAI (Insurance Surveyors and Loss assessors) (Amendment) Regulations 2019, which was released recently, has proposed hiking the loss limits for appointment of surveyors.

For the filing of motor insurance claims, it has proposed that policyholders can report claims up to ₹75,000, against the current ceiling of ₹50,000.

For claims other than motor insurance, the IRDAI has proposed a threshold of ₹1,50,000, against the current ₹1 lakh.

Roopam Asthana, CEO and Wholetime Director, Liberty General Insurance, said this is a long-pending correction in view of the inflation in the labour market and vehicle part costs in the case of motor insurance. “Surveyors are required for managing complex claims, and simpler or low-ticket size claims should be left to the insurance companies to handle directly with their customers,” he said.

‘Customer-friendly move’

Bisheshwari Singh, Principal Officer, Universal Sompo General Insurance, also called it a customer-friendly move, and said the threshold can be even higher. “In my opinion, the requirement of IRDAI-licensed surveyor for motor should be minimum ₹1 lakh and for the other (non-motor) ₹2 lakh.

“Due to inflation, the cost of motor vehicle parts is increased and many a time simple loss such as breakage of windscreen, side mirror and bumper cost more than ₹50,000,” he noted.

Similarly, small fire loss or burglary loss, which is assessed on estimated basis, does not require any technical expertise, he pointed out, adding that companies have sufficient database and have started using AI to settle the loss promptly. To ease over the waiting period for surveyors to reach and assess the damage, many general insurers have already launched apps for motor insurance claims, where the policyholder can take photographs of the vehicle damage and send them directly.

“This is especially required in smaller cities where often surveyors are busy. These apps help in faster processing of claims so that the customer can get the repaired vehicle quickly,” said an executive with a private sector general insurer.

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