IDRA proposes 25-fold hike in non-life insurance surveyor licence fee

The Insurance Development and Regulatory Authority (IDRA) has proposed major changes to the licensing system for surveyors in the non-life insurance sector, including a 25-fold increase in the fee for a new licence.

A draft amendment to the existing Non-Life Insurance Surveyor (Licensing) Rules, 2018 proposes raising the new licence fee from Tk2,000 to Tk50,000. It also seeks to extend the licence validity period from one year to two years.

IDRA’s Law and Regulations Division sought opinions from relevant stakeholders on the draft on 6 September, asking them to submit their views within seven days. 

The authority said it would take the necessary next steps if no opinions were received within the stipulated period.

Non-life insurance surveyors independently investigate and assess damage to insured assets, accidents and insurance claims. 

They inspect property damaged by fire, accidents, theft, natural disasters and other causes to determine the extent and cause of the damage and whether it is covered by the insurance policy.

Surveyors collect relevant documents, photographs and other evidence and submit detailed reports to insurance companies. 

The insurers then use these reports to determine the amount of claims and compensation.

What the 2018 rules said

IDRA introduced separate rules for licensing non-life insurance surveyors in 2018 under the relevant provisions of the Insurance Act, 2010. The rules were published in the government gazette on 23 October that year.

The rules classify surveyors into sub-categories based on their areas of work, including fire, marine cargo, marine hull, motor, engineering, aviation and miscellaneous. 

The authority may introduce additional sub-categories through a government gazette if necessary.

To obtain an individual surveyor’s licence, an applicant must have at least a bachelor’s or equivalent degree from a recognised local or foreign university and at least five years of practical experience as a surveyor. 

The applicant must also not be employed by an insurer, insurance agent, broker or related organisation. A person seeking to work as a surveyor must also complete at least five years of practical training as an apprentice under a licensed surveyor and submit a certificate of the training with the licence application.

Licence validity to double

Under the existing rules, a surveyor’s licence is valid for one year. 

Surveyors can apply for renewal before the licence expires and, subject to the rules, may renew an expired licence by paying a late fee.

The amendment draft proposes extending the validity of both new and renewed licences to two years.

The draft also proposes greater scrutiny of surveyors’ activities during renewal. 

Currently, surveyors must provide details of survey reports submitted during the previous one year, categorised by sub-category. The amendment would extend the reporting period to two years.

New licence fee to rise 25-fold

The biggest proposed change is to the licence fee structure.

Under Rule 13 of the 2018 rules, a new licence costs Tk2,000, while the renewal fee is Tk1,000. The late fee for renewing an expired licence is Tk100 per month, and a duplicate licence costs Tk100.

The draft proposes raising the new licence fee to Tk50,000 –  an increase of Tk48,000, or 2,400%, from the existing fee. In other words, the proposed fee is 25 times the current amount.

It also proposes increasing the renewal fee from Tk1,000 to Tk5,000, the late fee from Tk100 to Tk500 per month and the duplicate licence fee from Tk100 to Tk1,000.

IDRA said the amendments are intended to update the rules in line with current realities, reduce time and expenditure, lower maintenance costs and periodically revise government fees in consideration of market prices.

The authority also cited the need to facilitate timely licence renewal and strengthen administrative discipline and accountability.