SIP Report

“Nominated Surveyor Clause”
MARSH INSURANCE BROKERS PVT. LTD.
A PROJECT REPORT SUBMITTED AS A PART OF THE REQUIREMENTS FOR

THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY
ABHISHEK GHOSH
PGDM INSURANCE
AND
RISK MANAGEMENT
(PGD18035)
2018-20
Under the Guidance of
Project Guide Project Mentor

Prof. Ruchi Malhotra Mr. Anil Agarwal
IIRM Assistant Vice President
Claims Practice
Mr. Ramesh Mahto

Manager
Claims Practice
Mr. Siddhartha Pattnaik

Vice President
Claims Practice
INSTITUTE OF INSURANCE AND RISK MANAGEMENT, JUNE 2019
Nominated Surveyor Clause Page 1

CONTENTS
Particulars Page nos.
Declaration 3
Acknowledgement 4
Executive Summary 5
Insurance in India 6
Types Of Insurance 7
Brokers 8-9
Marsh & McLennan Companies 10
Claims 11
Surveyor 12
Nominated Surveyor Clause 13
Findings and Analysis 14-23
Conclusion 24
References 25
Appendix A 26-28

DECLARATION
I hereby declare that the project entitled “Nominated Surveyor Clause” submitted
for the MBA Degree is my original work and the project has not formed the basis for
the award of any degree, associateship, fellowship or any other similar titles.
Abhishek Ghosh
Place: IIRM, Hyderabad
Date: 12th June 2019

ACKNOWLEDGEMENT
I would like to thank the organization, Marsh Insurance Brokers Private Limited,
Mumbai for giving me the opportunity to work with them as a Summer Intern and
gaining valuable experience in the field of Insurance Brokerage by working on a
project of nominated surveyor clause.
I would like to thank my mentors Mr. Anil Agarwal, Mr. Ramesh Mahto and Mr.
Sidhartha Pattnaik - of Claim Services team for their guidance and encouragement that
they had provided during the course of my tenure at Marsh, Mumbai. I would also like
to thank for fellow interns for helping me at times whenever I needed any advice. I
would also like to thank the surveyors for helping me with my survey. This report
would not have been possible without the help of all these people.

INTRODUCTION TO THE TOPIC OF THE PROJECT
NOMINATED SURVEYOR CLAUSE
In the insurance broking space, Marsh always believes in extending best-in-class service
experience for its clients. It is imperative that we demonstrate the same excellence in claims
advisory which is highly critical to retaining existing clients and drawing attention of new
prospects.
In order to ensure efficient claims delivery, effective engagement with surveyors prior to
reporting of claim and utilization of their expertise during handling of such claim becomes a
crucial aspect. Having client specific pre-designated surveyors based on their expertise,
service delivery standards, infrastructure and geographic footprint can lead to enhanced
claims service experience for our clients.
Following are some key advantages of having a pre-agreed surveyor panel:
 Choice of selecting a few specialist surveyors who are familiar with general business
activity sector/industry/client.
 It gives lead time advantage when a loss occurs. The surveyor may be contacted directly
eliminating the transactional time loss on reaching insurer for engaging surveyors.
 Pre-loss discussion on insurance coverages for lessening possibility of post-loss coverage
disputes or coverage confusion.
 Client specific business practices and documentation can be pre-understood and agreed
whereby we cut down on transactional time post loss during survey and loss assessment
process.
 Leverage on surveyors’ expertise for better claims preparedness

FOCUS ON CURRENT ISSUES
INSURANCE IN INDIA
INSURANCE- Insurance is a contract between two parties wherein one party called the
insurer undertakes in exchange of risk transferring for a fixed sum called premium to pay the
other party on happening of an uncertain event.
All over the world insurance is considered as a cover against a future possible risk. For this
we have several insurance companies and reinsurance companies which provide these
services. In India insurance is a federal subject. The Indian insurance industry consists of 55
insurance companies, among them there are 24 life and 31 non- life insuring companies. In
the life insurers category LIC is the sole public sector company and there are 7 public sector
non-life insurers. In addition to that the sole national reinsurer is the General Insurance
Corporation of India (GIC Re). There is a huge potential for various global players in the life
and non-life insurance in India
as it is still a nascent sector.
Insurance penetration and density in India:
The measure of insurance penetration and density reflects the level of development of
insurance sector in a country, while insurance penetration is measured as the percentage of
insurance premium to GDP; insurance density is calculated as the ratio of premium to
population (per capita premium)
During the first decade of insurance sector liberalization, the sector has reported consistent
increase in insurance penetration from 2.71 % in 2001 to 5.2 % percent in 2009. However,
since then, the level of penetration has been declining reaching 3.9% in 2013. A similar trend
was observed in the level of insurance density which reached the maximum of USD 64.4 in
the year 2010 from the level of USD 11.5 in 2001 during the year under review 2013, the
insurance density was USD 52.0.
The insurance density of life insurance business has gone up from USD 9.1 IN 2001 to reach
the peak at USD 55.7 IN 2010. During 2013, the level of life insurance density was only
USD 41. Similarly, the life insurance penetration surged from 2.15 % in 2001 to 4.60 % in
2009. Since then, it has exhibited a declining trend reaching 3.1 % in 2013.
Over the last 10 years, the penetration of non-life insurance sector in the country remained
steady in the range of 0.5-0.8 %. However, its density has gone up from USD 2.4 IN 2001 to
USD 11.0 in 2013.

TYPES OF INSURANCE
LIFE INSURANCE- It is a contract between an insurer and a policy holder. Under this
contract the insurer guarantees payment of a death benefit to nominated beneficiaries upon
the death of the insured. The insurance company promises a death benefit in consideration of
the payment of premium by the insured.
HOW LIFE INSURANCE WORKS- The drive to get a life insurance by an insured is it to
provide a financial armor to the surviving dependents after his/her death. To get a meaningful
life insurance policy there are certain steps to follow:
 Analyze the financial situation and the basic needs of the dependents that are required
to be satisfied in order to a live civilized life.
 Proper analyses of needs by the life insurance agents or brokers needs to be done in
order to suggest the most appropriate life insurance policy to the insured.
 Selecting the appropriate life insurance policy from various life insurance channels
comprising of whole life, universal life, term life, Variable Universal Life (VUL)
policies.
 Keep re-evaluating the needs annually, or after important life events like marriage,
birth or adoption of a child, divorce, purchase of real estate properties etc.
The main types of life insurance policies are –

1. Term insurance policies.
2. Endowment policies.
3. Whole life policies.
4. Money back policies.
5. Unit linked policies.
6. Pension policies
GENERAL INSURANCE- It is also known as Non-life Insurance. It gives protection for

various non-life assets like cars, homes, and other valuables from financial impacts of big,
small or medium risks – fire, earthquake, flood, storm to theft, car accident, and travel
mishaps.
The major types of general insurance are –
1. Motor insurance.
2. Marine insurance.
3. Health insurance.
4. Miscellaneous.

BROKER
An insurance broker sells, solicits, or negotiates insurance for compensation.
As of 2015, the largest insurance brokers in the world, by revenue, are Marsh & McLennan,
Aon Corporation, Arthur J. Gallagher & Co, and the Willis Group
Brokers are not appointed by insurers. They solicit insurance quotes and/or policies from
insurers by submitting completed applications on behalf of buyers. Brokers don't have the
authority to bind coverage. To initiate a policy, a broker must obtain a binder from the
insurer. A binder is a legal document that serves as a temporary insurance policy. It usually
applies for a short period, such as 30 or 60 days. A binder is not valid unless it has been
signed by a representative of the insurer. A binder is replaced by a policy.
Brokers may be either retail or wholesale. A retail broker interacts directly with insurance
buyers. If you visited a broker, who then obtained insurance coverages on your behalf, he or
she is a retail broker. In some cases, your agent or broker may be unable to obtain insurance
coverage on your behalf from a standard insurer. In that event, he or she may contact a
wholesale broker. Wholesale brokers specialize in certain types of coverage. Many are
surplus lines brokers, who arrange coverages for risks that are unusual or hazardous.
An insurance broker is a specialist in insurance and risk management.
Brokers act on behalf of their clients and provide advice in the interests of their clients.
Sometimes an insurance broker will act as agent of an insurer, but where this occurs the
situation should be fully explained to you.
A broker will help you identify your individual and/or business risks to help you decide what
to insure, and how to manage those risks in other ways.
An insurance broker might specialize in one specific type of insurance or industry, or they
might deal with many different types.
Insurance brokers can give you technical advice that can be very useful if you need to make a
claim.
Brokers are aware of the terms and conditions, benefits and exclusions and costs of a wide
range of competing insurance policies, so they can help you find the most appropriate cover
for your own circumstances.
Brokers can help arrange and place the cover with the chosen insurer and can often provide
advice on how to make the most of your insurance budget.
The types of brokers are –
(a) Direct broker (life)

(b) Direct broker (general)
(c) Direct broker (life & general)
(d) Reinsurance broker
(e) Composite broker

Claim Consultancy –
Insurance brokers may undertake claims consultancy only for commercial lines of general
insurance business, subject to the following conditions:
(a) For claims not exceeding Rs. 10 crore the insurance broker may undertake claims
consultancy provided such claim does not emanate from a policy, which has been placed by
the same insurance broker.
(b) The insurance broker shall inform the Authority within 30 days of acceptance of such
claims consultancy by providing details such as name of the client, place of risk, name of the
insurer, name of the distribution channel, if any, amount of claim, date of occurrence of loss,
mandate obtained from the client for the claims consultancy.
(c) For claims exceeding Rs. 10 crores the insurance broker may undertake claims
consultancy with the prior approval of the Authority.
(d) The application for seeking prior approval under Regulation 28 (1) (c) shall accompany
the details such as name of the client, place of risk, name of the insurer, name of the
insurance intermediary through whom the policy was originally placed, the reason for not
providing the claims assistance to the client by the other intermediary, amount of claim, date
of occurrence of loss, mandate obtained from the client for the claims consultancy.
(e) Before offering the claims consultancy, the insurance broker shall obtain a written
mandate from the client to represent the client with the insurer concerned for the claim for
which consultancy has been sought by the client and offered by the insurance broker.
(f) The insurance broker may charge fee for claims consultancy services as may be mutually
decided between the insurance broker and the client. However, such fee shall not be
expressed as a percentage of the claim.
(g) The insurance broker shall, in all their dealings with such clients, be governed by the
provisions of Code of Conduct as specified in Schedule I – Form H and Schedule I – Form I,
as applicable, of these regulations.
(h) Any dispute between two or more insurance brokers arising out of such claims
consultancy arrangements shall, in the first instance, be considered by the Insurance Brokers
Association of India (IBAI) and thereafter the IBAI shall forward such dispute together with
its recommendation to the Authority for final disposal.
(i) The Authority will review and decide the norms regarding claims consultancy from time
to time.

Marsh & McLennan Companies
Marsh & McLennan Companies, Inc., incorporated on March 17, 1969, is a professional
services firm offering clients advice and solutions in risk, strategy and people. The Company
is the parent company of various risk advisors and specialty consultants, including Marsh, the
insurance broker, intermediary and risk advisor; Guy Carpenter, the risk and reinsurance
specialist; Mercer, the provider of human resource (HR) and investment related financial
advice and services, and Oliver Wyman Group, the management, economic and brand
consultancy. The Company conducts business through two segments: Risk and Insurance
Services, which includes risk management activities (risk advice, risk transfer and risk
control and mitigation solutions), as well as insurance and reinsurance broking and services,
and Consulting includes health, retirement, talent and investments consulting services and
products, and specialized management, economic and brand consulting services.
The Company conducts business in the Risk and Insurance Service segment through Marsh
and Guy Carpenter. Marsh is engaged in delivering risk advisory and insurance solutions to
companies, institutions and individuals around the world. Marsh's contributions include
introducing the practice of client representation through brokerage, the discipline of risk
management, the globalization of risk management services, and the development of service
platforms that identify, quantify, mitigate and transfer risk. As of December 31, 2016,
approximately 30,300 Marsh colleagues provided risk management, insurance broking,
insurance program management services, risk consulting, analytical modeling and alternative
risk financing to a range of businesses, government entities, professional service
organizations and individuals in more than 130 countries.
In its insurance broking and risk advisory business, Marsh employs a team approach to
identify, quantify and address clients' risk management and insurance needs. Marsh's product
and service offerings include risk analysis, insurance program design and placement,
insurance program support and administration, claims support and advocacy, alternative risk
strategies and a wide array of risk analysis and risk management consulting services. The
firm's resources also include more than 35 risk, specialty and industry practices, including
robust cyber, financial and professional service practices, along with employee health &
benefits business. Marsh provides services to clients of all sizes, including large multinational
companies, high growth middle-market businesses, small commercial enterprises and high
net-worth private clients. Marsh has advisory and placement services that benefit large
domestic and international companies and institutions facing complex risk exposures.

CLAIMS
A claim triggers when intimation is sent to the insurance company that an occurrence has
caused a loss or damage that is believed to have been covered by the policy and insurer’s
action for fulfilment under policy provisions is requested. The financial loss could be due to
loss or damage to insured property, or adversely impacted interest which is measurable in
monetary terms.
Determination of admissibility of a claim and extent of financial loss admissible under

insurance contract are core to an insurance claim. As per regulation, beyond a threshold limit
and for certain claims, IRDA licensed Surveyors and Loss Assessors (SLA) will verify and
assess the loss. SLA’s final reports are reference for insurance companies for taking decision
on admissibility and extent of amount payable for claim.
Loss Intimation to Surveyor

incident insurer appointment
No Yes
Claim under Insurer will share surveyor’s

self-survey detail. Coordinate with
limit. Insurer surveyor to arrange timely
issues LOR. visit at loss location
Share list of requirements Post visit, Surveyor will

with client share LOR
Request client to comply with Follow-up with

the document requirements surveyor/insurer for draft
and share the documents assessment
with surveyor/insurer
Share assessment with client

for consent and update
insurer/surveyor accordingly
Follow-up with surveyor to

SURVEYOR
report final survey report and
SURVEYOR
follow-up
SURVEYOR/ with insurer for
payment Surveyor
appointment

SURVEYOR
Insurance policies are of different kinds depending upon the level of protection required by you in
various stages of life. Not just for life and health, a lot of people also buy insurance to cover their
home, machinery at business, and cargo, among others.
However, when a claim is filed, there could be differences between what an insurer and the
insured believe the actual loss in a particular situation to be. Accordingly, if there is a claim
that is expected to go beyond a certain defined limit under a general insurance policy, the
insurer sends a surveyor or a loss assessor to determine the damage.
Ideally, the surveyor and loss assessors are expected to observe the damage and submit their
report about it independent of the insurer and the insured.
They play vital role in general insurance claims. A surveyor is essentially a professional link
between the insured and the insurer. An individual or a corporate entity willing to be a
surveyor and loss assessor has to undergo an application process, as decided by the Insurance
Regulatory and Development Authority of India (IRDAI). IRDAI has defined the specific
eligibility criteria for different kinds of surveyors.
For instance, to become a surveyor and loss assessor for motor insurance, one must have
qualifications in mechanical or automobile engineering. Surveyor for marine insurance
requires qualifications in marine engineering or naval architecture; and surveyor of a crop
insurer requires a degree in agricultural sciences. IRDAI maintains a list of all the surveyors
in the country on its website.
Surveyors come into the picture when estimated losses are in excess of Rs50, 000 for a motor
insurance claim and over Rs1 lakh in other insurance claims, such as for fire or marine
insurance.
IRDAI reviews these limits every 3 years. The surveyor can be appointed either by the
insurer or the insured. However, the surveyor’s report is not binding on the insurer. In case
the insured is not satisfied by the final settlement offered by an insurer, she can approach the
insurance ombudsman.
Moreover, insurers have an institutional mechanism in place to appoint these professionals

and pay them their fees. If you want to appoint your own surveyor, you would have to pay for
it.
A surveyor and loss assessor, whether appointed by insurer or insured, is expected to submit
the report to the insurer within 30 days of being appointed—and a copy of the report to the
insured as well, with comments on the assessment of loss. If required, the surveyor can seek
an extension while keeping the insured informed about the same. However, regardless of any
extensions, a surveyor has to submit the report within 6 months from the date of
appointment.
If the insurance company finds a survey report to be incomplete, it can ask the surveyor for
an additional report, which needs to be submitted within 3 weeks. Such an additional report
can be sought only one time during a single claim cycle.

SELECTION OF THE ISSUE AND ITS RELEVANCE TO THE
INDUSTRY/ SECTOR
First of all I was placed in the claims department at Marsh. The project I was given was the
nominated surveyor clause. It is a clause in general insurance policies according to which the
surveyors are engaged with prior to reporting of claims.
The nominated surveyor clause has various touchpoints in the claims process which were
analyzed. A survey was conducted for 19 surveyors and their responses were recorded. On
the basis of such responses an analysis was made whether or not such clause was beneficial
to the surveyors, clients, insurers and intermediaries (brokers).
Such analysis would help in deciding whether or not such a clause would be beneficial for the
parties concerned, if included in the policies.
The MCS (Multinational client services) do not have a nominated surveyor clause in the
Indian policies taken by them. The clause may be present in the global insurance policies
taken by them.
Based on the survey it was found out that the nominated surveyor clause would highly benefit
them as well.
In the insurance industry time is of the essence. The nominated surveyor clause leads to better
claims satisfaction and faster disposal of claims. Hence it should be included in most policies
whenever possible.

JUSTIFYING THE NEED FOR THE STUDY PROJECT
The study was conducted to find out the effectiveness of the nominated surveyor clause in the
insurance policies and whether or not it was benefitting the surveyors, clients, insurer and
intermediaries (brokers).
The study would analyze the nominated surveyor clause and find out whether or not it should
be included in insurance policies in the future.

OBJECTIVES OF THE STUDY AND ITS IMPORTANCE
EXECUTIVE SUMMARY
Objective:
The key objectives of the project were:
1. Identify the critical touchpoints of the nominated surveyor clause.

2. Identify the advantages and disadvantages of the nominated surveyor clause and try to
come up with suitable suggestions/improvements.
Methodology:
Objective 1: Study the claims manual to know about the documents required and the
claims process followed here at Marsh. Also study the surveyor regulations, engaging
with preferred surveyors, IRDAI broker regulations, protection of policyholder’s
interest and nominated surveyor clause.
Objective 2: Make a questionnaire for surveyors to get an idea about how the
nominated surveyor clause works and whether or not the claims process is efficient
and effective.
Objective 3: Interact with surveyors to get an idea about the nominated surveyor
clause and analyze the various necessary touchpoints in the process.
Objective 4: Provide suggestions and ideas for improvement after getting a concise
idea of the nominated surveyor clause.
Objective 5: Make charts highlighting the information relating to the touchpoints of the
nominated surveyor clause.

APPROACH TO ACHIEVE THE OBJECTIVE
To achieve the objective I had made a questionnaire about the nominated surveyor clause and mailed
it to 25 surveyors out of which 19 had replied.
Nominated surveyor clause questionnaire:
HEADING QUESTIONS
1. Have you been part of the Nominated Surveyor Panel (NSP) (Remove the incorrect answer)
Yes No
2. Experience of working as i. How was your experience with client?

part of NSP Ans)
---------------------------------
ii. How was your experience with Insurers?

Ans)
-------------------
iii. How was your experience with intermediary (broker)?

Ans)

-------------------
3. Advantages of NSP Ans)
4. Disadvantages / Challenges Ans)

of NSP
5. MARSH Claim Handling Is Marsh claims process better than that of other brokers?
(Remove the incorrect answer)
a) Yes b) No
How can the claim experience for Marsh clients be improved?

Ans)
------------------------------
6. Suggestions Ans)

7. Questions I. Is inclusion of Nominated Surveyor clause beneficial for you? (Remove the
incorrect answer)
a) Yes b) No
II. Are you better equipped to understand the client’s business? (Remove the
incorrect answer)
a) Yes b) No
III. Is inclusion of Nominated Surveyor clause beneficial for client? (Remove the
incorrect answer)
a) Yes b) No
IV. Is inclusion of Nominated Surveyor clause beneficial for Insures? (Remove

the incorrect answer)
a) Yes b) No
V. Is inclusion of Nominated Surveyor clause beneficial for intermediary?

(Remove the incorrect answer)
a) Yes b) No
VI. Does inclusion of NSP help expedite the claim settlement process? (Remove
the incorrect answer)
a) Yes b) No
VII. Do you prefer inclusion of surveyor panel in policy? (Remove the incorrect
answer)
a) Yes b) No
VIII. Are you open to prior meeting with potential clients for understanding their
business and discuss on service delivery? (Remove the incorrect answer)
a) Yes b) No
IX. Will you be willing to share general advisory on valuation of

risk/methodology of determination of value at risk? (Remove the incorrect
answer)
a) Yes b) No

SOURCES OF DATA FOR ANALYSIS
For the analysis the only source of data was the replies sent by the surveyors. The 19 surveyors
who had replied had given their varied viewpoints about the nominated surveyor clause.
Replies were received as follows –
Advantages of NSP
 The surveyor are always at ease when they are empanelled as NSP because they were
aware about the Insured’s business and their day to day activities therefore it is easy for
a surveyor to gel up with the Insured and easy to make professional relations with them.
As an empanelled surveyor the Insured is always at ease and comfortable to share the
documents (as well as some confidential documents) without any hesitation.
 Pick up / seek only the relevant info from the insured as we know the client’s
background.
 Smooth flow of information / follow-up.
 Knowledge & experience in previous claims helps in future claims.
Disadvantages/ Challenges of NSP
 It has been observed that sometimes repeat nomination makes the surveyors casual in
which they try to manage some smaller claims form their office itself by asking the
clients to take pics and rely on documents / statements submitted by them rather than
their own visit and verifications. However it is only a rare case which may be treated as
an exception.
 Heated arguments with the Insured because of lack of Insurance knowledge.
 Bit difficult with the insured when moral hazard is BAD.
Suggestions
 Involve the NSP in arriving at a common understanding of the policy coverage and
claims concepts. Such discussions should ideally involve the underwriters also.
 The above suggestion is actually work to be done by the Broker / Underwriters who are
getting their commission / premium. A surveyor must be compensated for his
expenditure and time, if such meetings are being arranged since the surveyor earns fees
only if there is a claim and for which he needs to spend time in any case.
 They (Marsh) should be involved from inception.

KEY PARAMETERS FOR ANALYSIS
The key parameters for the analysis were the various touchpoints which are enumerated as
follows -

INTERPRETATION OF THE FINDINGS
FINDINGS AND ANALYSIS
Being a part of the nominated surveyor panel
Out of the 19 replies that I had received 16 surveyors has been a part of the nominated surveyor
panel once or more than once. 3 surveyors have not been part of the panel ever.
Since the 3 had not been part of the panel the questionnaire it is not applicable to them.
Part of nominated surveyor panel
3, 16%
Part of nominated surveyor panel
Not a part of nominated surveyor

16, 84% panel
From the above pie chart we can see that 84% of the surveyors have been a part of the nominated
surveyor panel while 16% has not been a part of such said panel.
Experience of working as a part of Nominated Surveyor Clause
I. Experience with Client
While being a part of NSP the experience of surveyors was good and it makes their job a bit
easy. They experienced that the Insured/Insurers are very co-operative and understanding.
There was better ease of working and speedy settlements since many details are already
known.
Good, as the surveyors interact with clients time and again, the level of trust & confidence
strengthens. This helps in making the journey of claim smooth. Some processes &
requirements are standardized to save time & resources at the end of Client/Broker/Insured.

It was easy to understand the process of insured for reporting of any loss and easily maintain
a claims documentation SOP for faster and smooth settlement of claims.
There are always two sides to a coin. Some surveyors felt that most of the clients are not
proactive in submission of documents. Some also say there wasn’t any particular difference
when they were not a part of such nominated surveyor panel.
II. Experience with Insurers
The surveyors experience was very good with the Insurers, they always ready to co-operate
with them and also help them during our discussion with the Insured and their brokers.
Being nominated surveyors helped even the Insurers in correct handling of the client
mitigation of unnecessary losses arising due to inapt handling of the claims, safeguard
against lack of proper knowledge in certain representatives of the client while seeking
redressal of their claims.
In all scenarios the consent and buy-in of Insurers is necessary. If the panel has the consent
of the Insurers, the conversations to follow in the event of a claim are easier to navigate and
document.
Even in this case some surveyors felt that most of the clients are not proactive in submission
of documents. Some also say there wasn’t any particular difference when they were not a
part of such nominated surveyor panel.
III. Experience with Intermediary (broker)
It is always great to have technically experienced intermediaries. During the claim it is

always easy and feasible to make them understand about the loss as well as the difficulties
the surveyor faces while dealing with the Insured. The broker always plays a role of good
intermediary between Insured and surveyor. As a surveyor we always appreciate the
interference of good and technically sound intermediaries/brokers.
Better cohesiveness of the three parties Insured Insurers and brokers by addressing common
factors for smoothening of claim settlement processes and also providing a better idea to the
brokers, clients alike for steps in mitigation of unnecessary claims.
Experience with broker is excellent as both get benefit of each other’s experience help in
seamless working i.e. deliverance. Broker`s technical team elaborates the coverage, the
working/business of the Insured for complete understanding of surveyor.
Brokers play a vital part in aligning all stakeholders as each one could have a different
perspective. The end goal remains, to ensure that the client is provided with a fair and
reasonable settlement under the policy afforded. Thus, the broker requires to play the
balancing act in convincing the Insured where necessary and debating the policy grey areas
where required.
NSP was very helpful to resolve the issue in case of dispute and educating the insured on
insurance terms & conditions.

Even in this case some surveyors felt that most of the clients are not proactive in submission
of documents. Some also say there wasn’t any particular difference when they were not a
part of such nominated surveyor panel.
Advantages of NSP
 The surveyor are always at ease when they are empanelled as NSP because they were
aware about the Insured’s business and their day to day activities therefore it is easy for
a surveyor to gel up with the Insured and easy to make professional relations with them.
As an empanelled surveyor the Insured is always at ease and comfortable to share the
documents (as well as some confidential documents) without any hesitation.
 Pick up / seek only the relevant info from the insured as we know the client’s
background.
 Smooth flow of information / follow-up.
 Knowledge & experience in previous claims helps in future claims.
 Customer (insured) is also more satisfied if same surveyor is delivering services.
 Consistent approach in loss assessment.
 Improves TAT because of good understating with insured.
 Common strategy for multiple claims.
 Insured does not have to comply with different LOR’s for common type of claims.
 Insurer gets uniform report; have no queries leading to quick settlement of claims.
 Pan India support using a larger NSP.
 SPOC available for the Insured and Broker to ensure all claims are managed through a
single channel.
 Insured is aware about the surveyor’s capability and quality of services.
 Surveyor also aware of Insured’s Insurance portfolio as well as risk.
 Easy to get MIS on any given time.
 Faster Settlement.
 Smooth Settlement.
Disadvantages/ Challenges of NSP
 It has been observed that sometimes repeat nomination makes the surveyors casual in
which they try to manage some smaller claims form their office itself by asking the
clients to take pics and rely on documents / statements submitted by them rather than
their own visit and verifications. However it is only a rare case which may be treated as
an exception.
 Heated arguments with the Insured because of lack of Insurance knowledge.
 Bit difficult with the insured when moral hazard is BAD.

 Insured / Brokers tend to ask for removal from NSP if their experience with the surveyor
is adverse (in their perception) in any claim and not only where surveyor is on NSP.
 Fastest services are to be provided for non-urgent claims also.
 There are certainly certain challenges using more than 2 NSPs on one portfolio.
Also, if there are NSPs that are not aligned, then approaches adopted on similar claims
could differ, causing greater challenges.
 The Insurers may perhaps be apprehensive about the influence of client on Surveyor.
 Less competition.
 Sometimes the process becomes monotonous/ automatic
 Lesser room for innovation.
 Other bright and suitable surveyors do not get chance to showcase their services.
Marsh Claim Handling
I. Is Marsh claims process better than that of other brokers?
So out of 16 replies in total, 9 surveyors felt that Marsh claims process was better than
others. 5 surveyors replied no. 2 surveyor replied no comparison.
Is marsh claims process better?
2, 13%
5, 31% Yes
9, 56%
No
No comparison
From the above pie chart we can see that 56% of the surveyors feel that marsh claims process is
better than that of other brokers while 31% feel no its not. 13% feel comparisons cannot be
made.
II. How can the claim experience for Marsh clients be improved?

 There should be a consultant team within Marsh. The team should be technically sound
and well experienced in Insurance Industry. This will increase the efficiency and also
improve claim settlements process and the number of pending files will come down.
 By better coordination e.g. In providing the documents / information with regard to
claim.
 By seeing the merits of the case rather than having an inclination towards the client in
each and every instance in disregard of the merits. They should also guide and handle
the client in a manner that unnecessary claims are warded off to save precious time and
effort of everybody. Mostly there is good handling by Marsh and they are more
particular as brokers.
 In many claims Marsh does not intervene from the inception of the claim intimation.
 Marsh needs to adopt a wholesome approach towards claims management and shed its
historical approach wherein, claims are managed by their relationship teams.
Also, Marsh needs to exert itself with Insurers on the appointment of the right service
providers to ensure the partnership is built and maintained with the right NSPs.
 Balancing the situation in case of dispute/difference of opinion on admissibility of
claim.
 Helping in interpretation of policy, making insured/insurers understand about policy
coverage, policy terms and condition.
 Regular claims review.
 Better understanding of claims processes maintained with each insurer is required.
 Seems better coordination with all concerned is required for smooth and faster
settlement of claims.
Suggestions
 Involve the NSP in arriving at a common understanding of the policy coverage and
claims concepts. Such discussions should ideally involve the underwriters also.
 The above suggestion is actually work to be done by the Broker / Underwriters who are
getting their commission / premium. A surveyor must be compensated for his
expenditure and time, if such meetings are being arranged since the surveyor earns fees
only if there is a claim and for which he needs to spend time in any case.
 They (Marsh) should be involved from inception.
 State holders should understand that all claims are not tenable. Instead of pressing hard
with one party, efforts should be made to jointly make client understand the
coverage/issue/non payable.
 All surveyors should be informed immediately after being nominated; a meeting of all
nominated surveyors to be arranged followed by meeting with insured & insurer in
presence of broker to have uniform approach and standardized process.
 Keep Innovating new ways for faster and smooth disposal of claims and understanding
needs of all concerned.
 Constant feedback from all concerned will lead to greater success.

Analysis of nominated surveyor clause
I. Is inclusion of Nominated Surveyor clause beneficial for you?
There were a total of 16 replies out of which 15 surveyors said that the inclusion of the
nominated surveyor clause was better for them. It leads to faster settlements, hence, speedy
realization of the surveyor’s fees.
However one surveyor felt that they, as independent professionals, don’t bother where from and
how the job comes, they have to give justice to the assignment.
Is inclusion of Nominated Surveyor clause

beneficial for you?
1, 6%
Yes
No
15, 94%
From the above graph we can see that 94% of the surveyors think that the inclusion of nominated
surveyor clause was beneficial for them. 6% think that it does not.
So overall we can conclude that the inclusion of the nominated surveyor clause has been
beneficial for the surveyor.
II. Are you better equipped to understand the client’s business?
There were a total of 16 replies out of which all 16 surveyors said that the inclusion of the
nominated surveyor clause made them better equipped to understand the client’s business.

Are you better equipped to understand the
client’s business?
0, 0%
Yes
No
16, 100%
From the chart we can see that 100% of the surveyors said that the inclusion of the nominated
surveyor clause made them better equipped to understand the client’s business.
III. Is inclusion of Nominated Surveyor clause beneficial for client?
There were a total of 16 replies out of which all 16 surveyors said that the inclusion of the
nominated surveyor clause was beneficial for the client.

beneficial for client?
0, 0%
Yes
No
16, 100%
Thus we can conclude that inclusion of the nominated surveyor clause was beneficial for the
client.

IV. Is inclusion of Nominated Surveyor clause beneficial for Insurers?
nominated surveyor clause was better for Insurers.
One of the surveyors replied that it’s not beneficial.

beneficial for Insurers?
1, 6%
Yes
No
15, 94%
surveyor clause was beneficial for Insurers. 6% think that it is not.
V. Is inclusion of Nominated Surveyor clause beneficial for intermediary?
nominated surveyor clause was better for Intermediary. One surveyor said it didn’t.

beneficial for intermediary?
1, 6%
Yes
15, 94% No
surveyor clause was beneficial for the intermediary. 6% think that it is not.

VI. Does inclusion of NSP help expedite the claim settlement process?
nominated surveyor clause was better for Intermediary. One surveyor said it was not.
Does inclusion of NSP help expedite the claim

settlement process?
1, 6%
Yes
No
15, 94%
From the above graph we can see that 94% of the surveyors think inclusion of NSP help expedite
the claim settlement process .6% think that it is not.
VII. Do you prefer inclusion of surveyor panel in policy?
There were a total of 16 replies out of which 15 surveyors said that they prefer inclusion of the
nominated surveyor clause. One surveyor said they don’t prefer it.
Do you prefer inclusion of surveyor panel in

policy?
1, 6%
Yes
15, 94% No
From the above graph we can see that 94% of the surveyors prefer inclusion the claim settlement
process. 6% don’t prefer inclusion of the panel.

VIII. Are you open to prior meeting with potential clients for understanding their business
and discuss on service delivery?
There were a total of 16 replies out of which all 16 surveyors said that they are open to prior
meeting with potential clients for understanding their business and discuss on service delivery.
Are you open to prior meeting with potential

clients for understanding their business and
discuss on service delivery?
0, 0%
Yes
No
16, 100%
From the chart we can see that 100% of the surveyors are open to prior meeting with potential
clients for understanding their business and discuss on service delivery.
IX. Will you be willing to share general advisory on valuation of risk/methodology of

determination of value at risk?
There were a total of 16 replies out of which 15 surveyors said that they would be willing to
share general advisory on valuation of risk/methodology of determination of value at risk. Two
surveyors said they were not willing to do so.
Will you be willing to share general advisory on

valuation of risk/methodology of determination
of value at risk?
2, 13%
Yes
14, 87% No

CONCLUSION WHICH CAN BE DRAWN FROM THE INTERPRETATION
CONCLUSION
Marsh has been performing great in the Indian market with respect to Insurance Broking. It has
been providing a list of superior services to their clients.
The surveyors who were a part of this survey are highly pleased with Marsh and especially the
way they handle claims. The surveyors had taken out precious time from their busy schedule in
order to respond to the nominated surveyor panel questionnaire which has made this survey
possible.
The surveyors had a good experience working with clients, insurers and the intermediaries
(brokers). Some surveyors said proper submission of documents on time was an issue.
The advantages of having an NSP include making sure the claims process is smooth for the
Insured and the Insurers. Surveyor become familiar with insured’s business and easily
understands the insured’s documentation.
The disadvantages are that sometimes there may be disputes. Also Insured / Brokers tend to ask
for removal from NSP if their experience with the surveyor is adverse (in their perception) in
any claim.
56 % of the surveyors feel that Marsh claims process is better than that of other brokers. A
couple of solutions for improvement includes there being a consultant team within Marsh. The
team should be technically sound and well experienced in Insurance Industry. Prompt and early
submission of documents along with regular claims review would help in this regard. Constant
feedback from all concerned will lead to greater success.
As far as analysis of the nominated surveyor clause goes it was in the favour of NSP clause
being included in the policy. Majority of the surveyors said inclusion of NSP was beneficial for
them. It made them better equipped to understand the clients business. The inclusion of the
clause is beneficial for clients, insurers, intermediaries as well as the surveyors. It expedites the
claims settlement process.
Surveyors are open to open to prior meeting with potential clients for understanding their
business and discuss on service delivery and 87% of them are willing to share general advisory
on valuation of risk/methodology of determination of value at risk.
Thus we can conclude that the NSP should be included in the insurance policies whenever
possible as there are many advantages to this.

FURTHER INSIGHTS AND LIMITATIONS
The surveyor clause was found to benefit the surveyors, clients, insurers and intermediaries
(brokers). Even for MCS (multinational client services) the inclusion of the nominated surveyor
clause in their Indian policies would be beneficial.
Thus inclusion of the NSP clause would be highly beneficial. Some of the problems in NSP were
proper documents were not provided on time and there were disputes among the parties. This can
be solved by better coordination among the parties involved.

REFERENCES
1. Claims Manual.
2. IRDAI broker regulations,
3. Engaging with preferred surveyors,
4. Protection of policyholder’s interest
5. Surveyor regulations.
Online Sources:
1. Surveyors - https://www.livemint.com/Money/iumLGnAVz2UX03ipEHgF5J/Insurance-
surveyor-and-assessor-functions-and-responsibilit.html
2. Insurance penetration and density - https://www.ibef.org/industry/insurance-sector-
india.aspx

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“Nominated Surveyor Clause”

MARSH INSURANCE BROKERS PVT. LTD.

A PROJECT REPORT SUBMITTED AS A PART OF THE REQUIREMENTS FOR

Under the Guidance of

Project Guide Project Mentor

Mr. Ramesh Mahto

Mr. Siddhartha Pattnaik

INSTITUTE OF INSURANCE AND RISK MANAGEMENT, JUNE 2019

Nominated Surveyor Clause Page 1

Nominated Surveyor Clause Page 2

Place: IIRM, Hyderabad

Date: 12th June 2019

Nominated Surveyor Clause Page 3

Nominated Surveyor Clause Page 4

Following are some key advantages of having a pre-agreed surveyor panel:

Nominated Surveyor Clause Page 5

Insurance penetration and density in India:

Nominated Surveyor Clause Page 6

The main types of life insurance policies are –

GENERAL INSURANCE- It is also known as Non-life Insurance. It gives protection for

The major types of general insurance are –

Nominated Surveyor Clause Page 7

An insurance broker sells, solicits, or negotiates insurance for compensation.

An insurance broker is a specialist in insurance and risk management.

The types of brokers are –

(a) Direct broker (life)

Nominated Surveyor Clause Page 8

Nominated Surveyor Clause Page 9

Nominated Surveyor Clause Page 10

Determination of admissibility of a claim and extent of financial loss admissible under

Loss Intimation to Surveyor

Claim under Insurer will share surveyor’s

Share list of requirements Post visit, Surveyor will

Request client to comply with Follow-up with

Share assessment with client

Follow-up with surveyor to

Nominated Surveyor Clause Page 11

Moreover, insurers have an institutional mechanism in place to appoint these professionals

Nominated Surveyor Clause Page 12

Nominated Surveyor Clause Page 13

Nominated Surveyor Clause Page 14

1. Identify the critical touchpoints of the nominated surveyor clause.

Nominated Surveyor Clause Page 15

Nominated surveyor clause questionnaire:

2. Experience of working as i. How was your experience with client?

ii. How was your experience with Insurers?

iii. How was your experience with intermediary (broker)?

Nominated Surveyor Clause Page 16

3. Advantages of NSP Ans)

4. Disadvantages / Challenges Ans)

How can the claim experience for Marsh clients be improved?

Nominated Surveyor Clause Page 17

IV. Is inclusion of Nominated Surveyor clause beneficial for Insures? (Remove

V. Is inclusion of Nominated Surveyor clause beneficial for intermediary?

IX. Will you be willing to share general advisory on valuation of

Nominated Surveyor Clause Page 18

Disadvantages/ Challenges of NSP

Nominated Surveyor Clause Page 19

Nominated Surveyor Clause Page 20

FINDINGS AND ANALYSIS

Being a part of the nominated surveyor panel

Part of nominated surveyor panel

Part of nominated surveyor panel