C:\irdaindiaold\httpdocs_04FEB2003\surveysyllabus.

rtf1

Examination for Surveyors & Loss Assessors Syllabus

SECTION -I Principles and Practice of General Insurance and Insurance Surveys.
A. General Insurance t Original Development and Growth of General Insurance Business t History and Development of General Insurance Business in India t Principles of Insurance t Classification of Insurance o Insurance Documents o Theory And Practice Of Rating t Policy wording - Exclusions - clauses t Types of Losses t Claims, Arbitration, conciliation t Risk Management / Loss Prevention t Laws and Regulations impacting Insurance and Survey Business B. Surveys t Surveyors - Origin and development of Profession. t Role & Functions of Surveyors and Loss Assessors

-1

t Historical Development of Profession in India t Licensing Regulations, Code of Conduct, Categorization t Requisite of Survey: a) b) c) d) e) f) g) h) i) Loss Assessment Depreciation Segregation - affected, unaffected Testing Repairs Replacement Labour Costs Valuation of used property, Vehicles, Machinery etc. Valuation of Survey

t Accounting Inputs as in (IRDA) t Loss minimization (IRDA) t Skills of investigation t Report Writing t Ethics

C:\irdaindiaold\httpdocs_04FEB2003\surveysyllabus.rtf3

SECTION -II Technical Subjects

1. Fire Insurance Fire Insurance Underwriting a. b. c. d. e. f. g. h. i. j. Basic Principles All India Fire Tariff Fire Policy Forms Special Perils Special Policies And Clauses Rating Practice Of Fire Insurance And Policy Drafting Underwriting & Reinsurance Specialised Policies Overseas Practice

General Fire Hazards Originating and contributory causes of fire hazards. Fire load Fire resistance Fire grading of structures Hazards arising from construction. Tariff classification of Bldgs., Hazards arising out of exposure, height, size and multiple occupancy Silent Risks. Hazards of air-conditioning and ventilation system. Air moving equipment, Refuse handling systems and such other services. Hazards of boilers and furnaces. Industrial furnaces / ovens Heat transfer and fluid power system Internal combustion engines.
-3

Nature of combustion, explosion and implosion. Inorganic and organic chemicals and their hazards. Industrial processes Night work. Hazards of electrical equipment Power transmission. Fire and Explosion Prevention Nature and modes of generation of electricity - Flow and effect of electric current - Direct and alternative current - Use of electricity and fire hazards electrochemistry - Electolysis Equipments for generating, receiving, controlling, transmitting, distributing and control of electricity. Their construction, operation and hazards - Static electric prevention of electric hazards. Assessments and prevention of fire hazards of substances. Fire and Consequential Loss Insurance Insurable Property - Application of Basic Principles Coverage under various fire policies - special perils

Fire Tariff - Rating - Underwriting - Risk inspection - Fire Hazards and Fire Prevention.

Special poilicies Fire documents - Cover node - Policy o Endorsements. Claims under fire policies - Legal and Procedural aspects. The basic loss of profits policy - sum insured and indemnity period- rating extensions of the policy - claims assessment and procedure Fire Insurance Claims The law relating to fire insurance contracts - Indian contract Act, Common Law - Principles of utmost good faith, insurable interest - indemnity, subrogation and contribution. Coverage under policies, A/B/C - Conditions and Warranties. Claims under special policies, special perils extensions and other extensions of the policy.

C:\irdaindiaold\httpdocs_04FEB2003\surveysyllabus.rtf5

What constitutes a loss ? - Doctrine of proximate cause - onus of proof - Right and duties of a parties. Ascertainment of amount of loss payable. Average and escalation clause. Salvage.

Appointment of loss under double insurance and concurrent and nonconcurrent policies. Office procedure relating to claims - functions and duties of surveyors Process of loss surveying and loss assessment - Final survey report - Miscellaneous legal aspect - Waiver - Estopper - Without prejudice - ex-gratia payments - Payments by mistake - Payments to persons other than the insured - assignment of claim proceeds - rules for construction of policies, ejusdem generis rule. Fire Surveys - Methodology t Assessment of Losses Building Machinery Furniture, Fixtures, Fittings, Electrical installation Stocks Special Perils o Contents of a Survey Report 2. Consequential Loss Insurance Purpose and Outline Why is Consequential Loss Insurance necessary? - Consequential losses not covered - How can Protection be provided Against Loss of Earning Power ? Evolution - Outline of Present Consequential Loss Insurance Policy.

-5

Scope of Present Consequential Loss Insurance Policy The Standard Policy form - The Schedule - The Specification; Turnover Basis. Underwriting, Rating and Proposal Form Interruption Risks- Underwriting - Rating - the Proposal Forms Ascertainment of Sum Insured How to arrive at the Sum to be Insured - Accounts What is a Standing Charge? - Net Profit and Taxation. Additional Items Wages- Rent Receivable - Additional Increase in Cost of Working - Auditor's Fees - Fines and Penalties Extensions and Additional Perils Extensions - Additional Perils

Variations in Policy Wordings Variations in Specification Wordings - Additional Clauses. Alternate Indices of Activity Output- Sales Value of Output - Input and Throughout - Productive Wages Spindles or Looms - Revenue Losses The Insured - The Company and the Adjuster - The Loss Adjustment General Revision - Pertinent Points

C:\irdaindiaold\httpdocs_04FEB2003\surveysyllabus.rtf7

3.

Motor Insurance.

History of motor insurance - Application of basic principles of insurance Types of vehicles - Types of policies - The Motor Vehicles Act, 1988, as amended Upto date - Important legal decisions. Scope of cover under different types of policies - Tariff Rules and Regulations - Proposal forms - Underwriting - Rating - Extras and discounts - Cover notes / Certificates of insurance - Policy forms - endorsements - Renewals - Claims processing and settlement - MACT - Lok Adalat / Lok Nyayalaya - Jald Rahat Yogana. Motor Claims - Forms - Check lists - Minimisation programme. Surveys - Methodology Surveys on different types of vehicles Two Wheelers Three Wheelers Taxies Private Cars Buses and Trucks Special types of vehicles Contents of a Motor Survey Report 4. Marine Cargo Insurance Marine Underwriting a. b. c. d. e. f. g. h. i. Introduction Domestic and International Trade Cargo Insurance Documents Cargo Insurance Coverages Underwriting Guidelines and Tariffs Cargo Underwriting and Rating 1 Cargo Underwriting and Rating 2 Hull Insurance 1 Hull Insurance 2

-7

j. k.

Maritime Fraud Reinsurance

Cargo Loss Prevention Types and causes for marine cargo loss. Role of Insurers in cargo loss prevention. Activities and role of L.P.A. (Loss Prevention Association) and IUMI (International Union of Marine Insurers). Packing and Packaging : Progress made in other countries of the world. Various types and methods of packing. Role of Indian Institute of Packaging. Storage of cargo : Factors affecting safety of cargo in storage. Staking methods for bagged cargo, cases, cartons, bales, barrels, drums, C.I. sheets, pipes and bars, etc. Special precautions for storage of hazardous cargo. Material handling : Safe handling practices for various types of packages and cargo. Road transportation of hazardous substances Motor Vehicles Act and Rules Loading and unloading operations and suitability of cargo handling gear, safe working practices and systems. Common causes of loss / damage to cargo during inland transit by rail / road and minimisation of losses. Stowage on board ships : Types of damage cargo can suffer from improper stowage and how this can be avoided through correct preparation of cargo holds to receive various types of cargo. Unitisation and containerisation : Major types of losses to which unitised / container cargo is prone to General stowage rules for safe carriage of unitised cargo containerisation of dangerous cargo JMDG Code Multi Modal transportation. Theft / Pilferage : How it arises in respect of various types of packing and the precautionary measures recommended to minimise / prevent this type of loss. Ports and customs procedures. Marine Insurance Claims

C:\irdaindiaold\httpdocs_04FEB2003\surveysyllabus.rtf9

a.

b.

Intr odu ctio n Typ es Of Los ses

c. d. e. f. h.

Cargo Claims (Part :- 1) Cargo Claims (Part :- 2) Cargo Claims (Part :- 3) Cargo Claims (Part :- 4) g. Recoveries Claims On Policies Of Insurance On Ships i. Collision Liabilities And Freight Claims j. General Average & Salvage

Cargo Surveys- Methodology Inland Transit ( Rail / Road / Inland Vessel ) Import Shipments ( Sea / Air ) Types of commodities / Types of losses Types of packing Consumer Causes of loss / damages Contain Cargo Special types of Cargo Multi - Modal transportation Contents of a Cargo Survey report.

5. Engineering Scope of Engineering insurance - Origin and development of engineering insurance - Application of basic principles.

-9

Types of plant and associated hazards - Engines, Refrigerating plant and general machinery - Lifts, cranes, material handling plant and equipment Boilers, pressure plant and electrical machinery. Contractors All Risks - Scope of cover, rating, underwriting and claims processing under different engineering policies - Erection All Risks - Marinecum-Erection. Contractor's Plant and Machinery - Boiler and Pressure Plant - Machinery Breakdown - Loss of Profits following machinery breakdown / boiler explosion - Advance Loss of Profits - Deterioration of stock in Cold Storage Electronic equipment - Miscellaneous engineering policies - Tariff provisions. Surveys and Risk Inspection - Statutory regulations. Loss Prevention and Minimisation. Engineering Surveys - methodology o Assessment of losses under Marine-cum-Erection policies Contractors Sea Risks/ Erection All Risks Contractors Plant and Machinery. Machinery Breakdown Boiler Explosion Cold Storage Electronic Equipment Miscellaneous Engineering Policies a Contents of a survey report in each of the above

6. Public Liability Insurance Application of basic principles of insurance - Legal aspects - Law of torts Statutory liabilities - Compulsory Liability Insurance Act - National Environment Tribunal Act - Contractual liabilities - Historical background. Cover under Public liability policies for non-industrial risks and industrial risks and under products liability policy.

C:\irdaindiaold\httpdocs_04FEB2003\surveysyllabus.rtf11

Extensions and endorsements - Proposal forms and Risk Assessment forms, methods of rating - Rules of Market Agreement. Compulsory public liability insurance - Provisions of the Public liability Insurance Act, 1991 and the Rules framed thereunder, Proposal form and the methods of rating. Professional indemnities Coverage, methods of rating and proposal form. Directors and Officers Liability insurance. Workmen's Compensation Act, 1923 (as amended). Employer's Liability - Insurance - coverage, methods of rating, proposal form Tariff Rules. Claims processing. Surveys - Methodology o Assessment of Third Party Personal Injuries / Property Damage Compulsory Public Liability Policy Industrial Risks Liability Policy Non-Industrial Risks Liability Policy Products Liability Policy a Contents of a Survey Report in each of the above.

7. Miscellaneous Insurance Personal Accident Insurance - Basic Principles - Coverage and Benefits Provisos and Exclusions - Rating - Extensions - Discounts - Claims procedures Group policies. Mediclaim - Benefits - Exclusions - Discounts - Conditions - Group - Claims Cancer policy - Deferred mediclaim. Overseas medical - Benefits and conditions - Exclusions - Overseas practice.

- 11

Types - Burglary - Scope - Exclusions - Extensions - Underwriting - Survey Claims. Baggage - Underwriting - Claims. Money in transit - Exclusions - Conditions - Extensions - Underwriting. Fidelity guarantee - Coverage - Types - Conditions - Underwriting Investigation. Court Bonds - Liquidator and Receivership Bonds - Government bonds. Banker's Blanket and Jewellers Block policies - Exclusions - Conditions Rating - Claims. Other miscellaneous policies - Pedal cycle - Plate glass - Special contingency Missing documents - Neon sign - Blood stock (Horse) - Pet dog - Sports - Television Shopkeepers - Householders - Multiperil for LPG (Gas) dealers - Doctors package Office protection - Adhikari Suraksha Kavach - Suhana Safar. Rural Insurances - Cattle - Sheep - Poultry - Shrimps - Prawns - Other Livestock - Seller norms, Horticulture, Lift irrigation, Salt works, Farmers package, Personal Accident Social Security, Hut Coverage, Exclusions and conditions - Claims procedures - Market agreements. Survey - Methodology o Assessment of losses Turnover / output basis Dual Wages and other methods of ensuing wages Machinery Breakdown / Boiler Explosion Advance Profits Subject - I General Notes.

1. In each subject will cover knowledge of basic principles, coverages, policy conditions and warrantees, risk inspection, if any, internal claims procedure of insurance companies and documents relating to under writing and claims.

C:\irdaindiaold\httpdocs_04FEB2003\surveysyllabus.rtf13

This will be a Foundation Course 2. Subjects in II This will provide for specalisation in each subject. Part A will provide. Knowledge of Policy Coverages, Policy conditions special , Schemes of Insurance , Additional Coverages etc. Part B Will cover the process of Survey and Loss Assessment.

- 13