IDRA tightens rules on insurance claim surveys

The Insurance Development and Regulatory Authority (IDRA) has finalised a new regulatory framework aimed at strengthening discipline, transparency and accountability in insurance claim surveys, including restrictions on the disclosure of survey reports without prior approval and mandatory record retention for at least three years.

The Insurance Surveyors and Loss Assessors Duties, Responsibilities and Code of Conduct Regulations, 2025 were gazetted on January 1, introducing for the first time a separate, written, and mandatory code of conduct for insurance surveyors and loss assessors.

The regulations seek to address long-standing concerns over bias, procedural irregularities, and a lack of trust in claim assessments.

Surveyors play a critical role in determining compensation for accidents, fires and business losses, as general insurance claims are largely settled based on their reports.

Industry insiders have long argued that the absence of detailed guidelines allowed excessive discretion, leading to inflated or underestimated claims, delays in settlements, and persistent transparency issues.

Bangladesh Co-operative Insurance Chief Executive Officer Noor-e-Alam Siddique said inaccurate survey reports often harmed both policyholders and insurers.

He added that clearly defining surveyors’ duties and responsibilities under the new regulations should help prevent disputes and improve the overall integrity of claims.

Under the new rules, all survey reports must be preserved until claims are finalised, while supporting documents must be retained for a minimum of three years.

Records related to claims under legal proceedings must be kept until final resolution. Previously, surveyors often failed to preserve records and supporting documents from site visits, sometimes discarding them before claims were settled.

The regulations set out mandatory procedures for conducting claim surveys, assessing losses, and preparing reports.

Surveyors handling non-life insurance claims are legally required to maintain neutrality, honesty, and professional integrity, with on-site inspections made compulsory, including multiple visits where necessary.

Conflicts of interest and confidentiality are also addressed. Surveyors must disclose any personal or business relationship with insurers or policyholders.

Claim-related information cannot be disclosed without written consent, and its use for personal or third-party gain is strictly prohibited.

Survey reports must be submitted within prescribed timelines, with negligence, delays, or misconduct potentially leading to legal action.

The regulations also emphasise continuous professional development, requiring surveyors to update technical skills, adopt modern technologies and follow structured training and capacity-building guidelines.

IDRA Media and Communications Consultant Saifunnahar Sumi said the regulations were finalised to address previous complaints against surveyors and restore discipline in the sector, adding that the rules came into effect immediately following publication in the gazette.