Surveyor's Role & Loss Assessment
The surveyor and loss assessor: who they are, when one is mandatory, the timelines for appointment and report in retail claims, what the report covers including salvage, and what an insured can do on disagreeing with it.
Who the surveyor is
An insurance surveyor and loss assessor is a professional appointed to assess the cause and the amount of a loss. Section 64UM of the Insurance Act, 1938 deals with the licensing and conduct of surveyors and loss assessors, and the detailed rules are in IRDAI's surveyor regulations.
The surveyor is appointed for the claim by the insurer, but must be licensed by IRDAI and act independently. The surveyor's report is the basis on which the insurer decides the amount of the claim.
When a surveyor is mandatory, and how quickly
A licensed surveyor and loss assessor is required for losses above ₹50,000 in motor insurance and above ₹1 lakh in other general insurance classes. Health claims are not surveyed. Older material quotes ₹20,000, which was the figure before 2015.
For retail general insurance policies, IRDAI's 2024 master circulars set the pace. The surveyor is allocated within 24 hours of the claim being reported; older material says 72 hours. The survey report is due within 15 days of allocation; older material quotes 30 days or more. The insurer then decides the claim within 7 days of receiving the report. Commercial and large-risk claims have their own timelines.
What the surveyor assesses
The surveyor assesses the cause, the extent and the quantum of the loss, including salvage. The surveyor has no role in fixing premium, for renewal or otherwise.
Salvage value is the residual value of damaged property that can still be sold. It is deducted from the assessed loss. The amount finally payable also reflects any excess, depreciation, under-insurance and policy limits, so the assessed loss and the cheque are rarely the same figure.
Before the visit, the insured keeps the damaged property and the supporting records, such as bills and stock registers, available for inspection, while taking reasonable steps to prevent further loss. The insurer is told before anything is disposed of.
Disagreeing with the report
An insured who disagrees can put written objections, with supporting evidence, to the insurer and ask for the assessment to be reconsidered or re-surveyed. If that fails, the dispute can go to the insurer's Grievance Redressal Officer and then to the Insurance Ombudsman, if the complainant is eligible, or to a consumer commission.
Rules at a glance
A flooded garment shop
Illustration: rainwater enters a garment shop overnight. The owner informs the insurer in the morning, moves the dry stock to a higher shelf to prevent further loss, and leaves the soaked stock where it is. She keeps her purchase bills and stock register ready. The surveyor, allocated by the insurer, inspects the stock, records the cause and counts the damaged pieces. Some pieces can be washed and sold at a discount; their expected sale value is the salvage.
From assessed loss to amount payable
- Assumptions, for arithmetic only: stock damaged is assessed at ₹6,00,000; the damaged stock can be sold for ₹80,000; the policy carries an excess of ₹10,000; the sum insured is adequate, so there is no under-insurance, and no depreciation applies to stock in this example.
- Loss after salvage = ₹6,00,000 − ₹80,000 = ₹5,20,000.
- Less excess = ₹5,20,000 − ₹10,000 = ₹5,10,000.
- The loss is above ₹1 lakh, so a licensed surveyor's assessment is mandatory.
Result. On the assumed figures the amount payable is ₹5,10,000: the assessed loss of ₹6,00,000 less salvage of ₹80,000 and the excess of ₹10,000.
Key points
- Surveyors and loss assessors are licensed under section 64UM of the Insurance Act, 1938 and IRDAI's surveyor regulations.
- A licensed surveyor is mandatory above ₹50,000 in motor and ₹1 lakh in other general insurance classes; health claims are not surveyed.
- The insurer appoints the surveyor, who must act independently.
- In retail claims the surveyor is allocated within 24 hours and reports within 15 days of allocation.
- The surveyor assesses cause, extent and quantum including salvage, not premium.
- Salvage is deducted from the assessed loss; excess, depreciation, under-insurance and limits also affect the amount payable.
Common misunderstandings
- The surveyor is not the insurer's employee deciding the claim: the surveyor is licensed by IRDAI and acts independently, and the insurer decides on the report.
- Health claims do not go to a surveyor: the surveyor thresholds apply to motor and other general insurance classes.
- Older figures of 72 hours and 30 days are out of date for retail claims: the 2024 rules say 24 hours and 15 days.
- Salvage is not paid in addition to the claim: its value is deducted from the assessed loss.
Questions people ask
Can damaged goods be thrown away before the surveyor comes?
The damaged property is kept available for inspection, apart from reasonable steps to prevent further loss, and the insurer is told before anything is disposed of.
Does the surveyor decide next year's premium?
No. The surveyor assesses the cause, extent and quantum of the loss and has no role in determining premium.
What if the insured thinks the assessment is too low?
Written objections with supporting evidence can be put to the insurer with a request to reconsider or re-survey. After that come the Grievance Redressal Officer, and the Insurance Ombudsman for those eligible or a consumer commission.
What this lesson relies on
- Insurance Act, 1938 — section 64UM, and IRDAI surveyor regulations
- IRDAI Master Circular on General Insurance Business (11 June 2024)
- IRDAI Master Circular on Protection of Policyholders' Interests (5 September 2024)
This lesson was reviewed independently against these sources on 8 October 2026. Rules change: check the current regulation, scheme document or policy wording before relying on any figure. This is education, not advice.