Ref: REVISION OF SURVEY FEE / INVESTIGATION FEES / EXPENSES

The Institute of Surveyors and Adjusters, Mumbai had submitted a proposal for revision of survey fee / expenses. Representations were also received from General Insurance Investigators' Association of Indore and Muzaffarpur for revision of Investigation fees.

The matter was discussed in the meeting of GMs (Tech) of Member Companies on 23.10.2006 and after detailed discussions all the GMs (Tech) agreed for some amendments in the Survey / Investigation fees and expenses schedule. The proposed amendments as recommended by GMs (Tech) were placed before the Governing Board of GIPSA in its meeting held on 12.12.2006 and 10.01.2007. The Governing Board has approved the amendments in the schedule of survey /

investigation fee / expenses.

A copy of the revised survey fee / investigation fee / expenses schedule is enclosed which may be implemented w.e.f. 01.02.2007 for the sake of uniformity in all member companies. A soft copy of the revised schedule has also been mailed to you for necessary action.

It has also been brought to our notice that as of now there is no uniformity in payment of Professional Fee for Pre-Insurance Inspection of Motor Vehicles. It is therefore suggested that all the member companies may standardize the same to ensure its payment at uniform rates atleast in the different offices of the same company.

Kindly acknowledge.

(Sd.) R.C. JAIN, Chief Executive.

Annexure I. 1. Sl. Nos. 1. 2. 3. 4. 5. 6. 7. 8. Material damage ASSESSED LOSS (Rs.) Upto 50,000/Above 50000 to 100,000/Above 100,000/- upto 10,00,000/Above 10,00,000/- upto 25,00,000/Above 25,00,000/- upto 50,00,000/Above 50,00,000/- upto 1,00,00,000/Above 1,00,00,000/- upto 5,00,00,000/Above 5,00,00,000/EXISTING FEES (Rs.) 8% of assessed loss subject to a minimum of Rs. 1,250/4000 + 2% on balance above 50,000/5000 + 1.5% on balance above 1,00,000/18500/- + 1.25% on balance above 10,00,000/37,250/- + 1.00% on balance above 25,00,000/62,750/- + 0.75% on balance above 50,00,000/1,00,250/- + 0.20% on balance above 1,00,00,000/1,80,250/- + 0.10% on balance above 5,00,00,000/- (Subject to a maximum of Rs.6,00,000/-) REVISED FEES (Rs.) 10% of assessed loss subject to a minimum of Rs. 1,500/5000 + 2% on balance above 50,000/6000 + 1.5% on balance above 1,00,000/19500/- + 1.25% on balance above 10,00,000/38,250/- + 1.00% on balance above 25,00,000/63,750/- + 0.75% on balance above 50,00,000/1,01,250/- + 0.20% on balance above 1,00,00,000/1,81,250/- + 0.10% on balance above 5,00,00,000/- (Subject to a maximum of Rs.6,00,000/-) FIRE & ENGINEERING SURVEY FEE SCHEDULES

Note 1: For assessment under Indemnity as well as Reinstatement Value Policies, the Survey fees applicable will be on the Gross Assessed Loss on to on Reinstatement Value basis. Note 2: The Schedules shall also apply on loss or damage to stock at intermediate storage place or at any other storage place covered in the policy.

2.

LOSS OF PROFIT: No change in the existing Schedule ASSESSED LOSS (Rs.) Upto 5,00,000/Above 5,00,000/- upto 10,00,000/Above 10,00,000/- upto 1,00,00,000/Above 1 Crore SURVEY FEES (Rs.) 200% of Material Damage fees 21,000 + 150% of fees for Material Damage on balance amount exceeding Rs.5,00,000/37,125/- + 100% of fees for Material Damage on balance amount exceeding Rs.10,00,000/1,36,625/- + 70% of fees for Material Damage on balance amount exceeding Rs.1,00,00,000/- subject to maximum of Rs.5,00,000/-

3.

PRELIMINARY SURVEY FEES:

No change in the existing Schedule

Appointment of any preliminary surveyor for property damage claim should be avoided as far as possible. In case, any preliminary surveyor has to be appointed then his fees may be paid at flat amount of Rs.3,000/irrespective of category of the surveyor.

4.

FEES PAYABLE TO THE SURVEYORS WHERE ASSESSMENT OF THE CLAIM IS NOT REQUIRED: Appearance in a Court / Tribunal / Ombudsman Office / Consumer Forum, etc. Category of Surveyors Category A Category B Category C Existing fees Rs. 3,500/- per day Rs. 2,500/- per day Rs. 1,500/- per day Revised fees Rs. 4,000/- per day Rs. 3,000/- per day Rs. 2,000/- per day

5.

TOTAL LOSS CLAIM:

No change in the existing Schedule

A claim may be treated as Total Loss when salvage value is below 5% of the sound value of the property destroyed. The fees to be paid for total loss claim may be restricted to 75% of the fees prescribed for normal claims.

6.

SALVAGE:

No change in the existing Schedule

When the surveyor is required to undertake reconditioning and sale of salvage on behalf of the Account / interest concerned, he may be paid fees and actual expenses maximum upto 5% of value realised.

II. MISCELLANEOUS DEPARTMENT (1) Schedule of Survey Fees: No change in the existing Schedule

Continue the existing practice i.e., to use the Fire & Engg. Survey fees' schedule for Miscellaneous Department also.

(2) Schedule for Doctors' Fees: In regard to Doctor's fees for Mediclaim and other Health Policies, the existing practice of deciding the fees by DGM / CRM depending upon the standing of the Doctor will continue subject to the following limits:

Existing fees Rs. 500

Revised fees Maximum of Rs.750/- for General Physicians Maximum of Rs.1,500/- for Specialists

III. MARINE (CARGO) SURVEY FEES: 1. Assessment of Loss/Damage to all types of cargo (a) Job work exceeding 5 hours for any loss

Category of Surveyor Category "A"

Existing fees Rs.3,500/- for being on the job work exceeding 5 hours per day subject to a maximum of Rs.35,000/Rs.2,500/- for on the job work exceeding 5 hours per day subject to a maximum of Rs.25,000/Rs.1,500/- for on the job work exceeding 5 hours per day subject to a maximum of Rs.15,000/-

Revised fees Rs.5,000/- for being on the job work exceeding 5 hours per day subject to a maximum of Rs.40,000/Rs.4,000/- for on the job work exceeding 5 hours per day subject to a maximum of Rs.30,000/Rs.2,000/- for on the job work exceeding 5 hours per day subject to a maximum of Rs.20,000/-

Category "B"

Category "C"

(b) On the job work not exceeding 5 hours for any loss Category of Surveyor Category "A" Category "B" Category "C" Existing fees Maximum of Rs.1,750/Maximum of Rs.1,250/Maximum of Rs.750/Revised fees Maximum of Rs.2,500/Maximum of Rs.2,000/Maximum of Rs.1,000/-

2.

Claims for non-delivery of package/packages and shortages Category of Surveyor Category "A" Category "B" Category "C" Existing fees Maximum of Rs.1,750/Maximum of Rs.1,250/Maximum of Rs.750/Revised fees Maximum of Rs.2,500/Maximum of Rs.2,000/Maximum of Rs.1,000/-

Note: For claims involving machinery and equipments requiring detailed inspection in line with engineering surveys to ascertain the extent of loss, fire and engineering schedule of fees will be applicable.

IV. MOTOR DEPARTMENT (1) Survey Fees Sl. No. 1. 2. 3. 4. 5. Repairers' Estimate of Repairs (Rs.) Upto Rs.20,000/20,001/- to 50,000/50,001/- to 1,00,000/1,00,001/- to 2,00,000/Above Rs.2,00,000/Existing Fees (Rs.) Rs.500/Rs.750/Rs.1,000/Rs.1,500/Rs.2,000/- + 0.5% of balance subject to max. of Rs.3,000/Revised Fees (Rs.) Rs.600/Rs.900/Rs.1,100/Rs.1,700/Rs.2,000/- + 0.5% of balance above Rs.2,00,000/- subject to maximum fee Rs.7,000/- in all

(2) Valuation of vehicle Maximum Rs.500/-

No change in the existing Schedule

(3) Investigations for OD Claims Upto Rs.600/- (existing Rs.500/-) plus out of pocket expenses

(4) Reinspection / Spot Survey Fees Sl. No. 1. 2. Reinspection/ Spot Survey Upto 80 Kms. Above 80 Kms. Existing Fees (Rs.) Rs.350/Rs.500/Revised Fees (Rs.) Rs.500/Rs.750/-

(5) Outstation survey (Spot/Final/Re-inspection) involving overnight stay away from the normal place of work: No change in the existing Schedule Fees calculated at 150% of the amount determined as per scale given above will be payable.

(6) Motorised Machines:

No change in the existing Schedule

The above schedule is to apply for Survey jobs in respect of motorised machines also. However, in the case of following types of miscellaneous class vehicles, Fire & Engineering fee schedule may apply. (a) Cranes: Breakdown vehicles, mobile cranes and goods carrying vehicles having a crane as part of or fixed to the vehicle or trailer. (b) Dumpers, dust carts, water carts, road sweepers and tower wagons, mechanical navvies, shovels, grabs, excavators, mobile plant, road rollers, site clearing and levelling plant and tar sprayers.

V. GENERAL PROVISIONS APPLICABLE TO ALL DEPARTMENTS 1. Fees for Joint Survey Appointment of joint surveys shall be at the discretion of Head Office and fee for joint survey may be paid at 133-1/3% of the schedule to be shared equally.

2.

Fees of Consultant / Specialist (New Proposal) Wherever a Consultant / Specialist is appointed to assist the surveyor, his fee shall be negotiated and agreed at the time of appointment itself.

3.

Additional fees payable at the discretion of the company: No change in the existing Schedule Whenever any special efforts are required for assessing loss in respect of complicated claims, payment of additional fees, if any, may be decided by the companies as per the following level: DGMs / CRMs GM HCC : : : Upto 150% of Survey fees including the claims falling within the Financial Authority of Divisional Offices. Upto 200% of Survey Fees. Exceeding 200% of Survey Fees.

4.

No change in the existing Schedule INVESTIGATION FEES (Other than Motor): DGMs / CRMs to negotiate in advance the fees depending upon status of the investigators and nature of investigation.

5.

CONVEYANCE EXPENSES: (i) Survey undertaken within local Municipal limits / Townships / City / Urban agglomeration Class of city A Class cities Other places Existing fees Rs. 250/- per day Rs. 150/- per day Revised fees Rs. 300/- per day Rs. 200/- per day

(ii)

Survey undertaken outside local Municipal limits / Townships / City / Urban agglomeration

(a) Reimbursement on actual basis (Travel by Air / Rail): No change in the existing Schedule Category A Surveyors Category B & C Surveyors Air (Economy) / AC II Tier AC II Tier Discretion for allowing travel by higher classes for difficult areas and due to urgency shall be with CRM / DGM

(b) Where the surveyor travels by road No change in the existing Schedule (i) Where the surveyor travels by road in his own car upto a distance of 350 km from his normal place of work to attend to a survey, he shall be paid uniformly a KM-rate equal to 15% of the local price of petrol per litre for distance actually travelled. Where the distance travelled is more than 350 km he may do so with the prior approval of the officer appointing him for the work. (ii) Where the surveyor travels by taxi with the prior of the appointing officer, he will be entitled to claim mileage allowances as per sub item (b) (i) above or actual taxi fare incurred whichever is lower. (iii) If the surveyor undertakes the journey in his own motorcycle or scooter to the site of the accident, the traveling expenses are to be fixed by the appointing office while granting approval for such travel.

6.

HOTEL CHARGES

No change in the existing Schedule

Reimbursement of lodging charges for stay in any ITDC hotels or 3 Star Hotels (A.C. single room) may be made to surveyors on production of original bills and receipts from the hotel. However if accommodation is not available in any of the ITDC or 3 Star Hotels, then the surveyor may stay in any other hotel in which case, the maximum lodging charges payable to the surveyors will be either the lodging charges applicable to ITDC or 3 Star hotels or actual expenses incurred towards lodging charges whichever is lower.

7.

DAILY HALTING ALLOWANCE

Class of city A Class cities B Class cities Other places

Existing fees Rs. 500/Rs.400/Rs. 300/-

Revised fees Rs.600/Rs.500/Rs.400/-

The daily halting allowance shall be paid for the period commencing from the time of outward journey from the headquarters to the time of return to the headquarters. Payment of daily halting allowance shall be regulated by the following scale: (No change)

(a) (b) (c) (d)

Every unit of 24 hours Period exceeding 12 hours Period exceeding 6 hours but not exceeding 12 hours Period not exceeding 6 hours

Full daily halting allowance Same as for a 24 hour unit 50% of the amount for a 24 hour unit 30% of the amount for a 24 hour unit

No daily halting allowance shall be paid for journey within jurisdiction of the surveyor's headquarters, i.e., municipal or town limits.

8. PHOTOGRAPHS / VIDEO / CDs To be reimbursed based on the number of photos (postcard size) at Rs.10/- for ordinary photographs (colour) and Rs.15/- for digital photographs. Bills / Cash Memos not to be insisted. It was recommended that in addition to still photographs, video photography may also be encouraged and expenses reimbursed subject to a maximum of Rs.1,000/-.

VI. FEES FOR THIRD PARTY CLAIM INVESTIGATORS No change is suggested in the existing schedule, i.e., Rs.1,000/- plus reimbursement of conveyance expenses by public transport. In exceptional circumstances the third party claim investigator may be reimbursed conveyance expenses by two-wheeler car taxi provided prior sanction approval is obtained from Competent Authority.

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