Voicing their concerns against the Insurance Laws (Amendment) Bill, the Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA) said on Saturday that the Bill seeks to remove their role as an independent intermediary of the general insurance industry.
The IIISLA consists of a statutory group of professionals which includes engineers, chartered accountants and cost accountants who are technically qualified loss assessors who ensure reasonable settlement of insurance claims. Promoted by the Insurance Regulatory and Development Authority (IRDA), the IIISLA was established under Section 25 of the Companies Act, 1956 on October 2005.
The Insurance Laws (Amendment) Bill proposes to remove Section 64 UM from the Insurance Amendment Act 1968 and replace it with another section which would move the licensing issues to the regulations framed by the IRDA, said chairperson of the West Bengal chapter of the IIISLA Tanmay Sarkar.
The Insurance Bill also seeks to bring down rate of foreign direct investment in the insurance sector to 49 per cent from 26 per cent. “If the Bill is enacted, the role of a surveyor will be taken up by any person assigned by the insurance company, who will settle claims on behalf of the insurance company and make sure that the company does not suffer losses. The common man does not know of the intricacies of an insurance policy, which is why we act as an impartial third party in deciding claims,” Mr. Sarkar said.
