Forensic Accounting is a field that is continuously developing and its uses are adapting to the increasing complexities in the business world.
Surveyors and Loss Assessors are professionals who offer their services to general insurance companies, particularly when there is a claim related to fire or motor insurance. Their role involves conducting surveys and assessing the extent of damages caused by the incident.
Insurance Surveyors Profession
Insurance is an essential part of our lives, providing us with financial protection against unforeseen events. When it comes to making insurance claims, a key player in the process is the insurance surveyor. In India, the profession of an insurance surveyor is highly regulated, and individuals must obtain a valid license to practice in this field. In this article, we will explore the vital role of insurance surveyors and their responsibilities in assessing and processing claims.
The Role of an Insurance Surveyor: Insurance surveyors play a crucial role in the insurance claim process. Their primary responsibility is to conduct a thorough physical examination of the damaged property or asset. Whether it’s a residential property affected by a fire or a vehicle damaged in an accident, the surveyor visits the site to assess the extent of the loss and determine the necessary actions required for repair or replacement.
Preparing the Surveyor’s Report: Once the surveyor completes their assessment, they compile their findings and observations into a comprehensive report. This report includes details about the nature and extent of the damage, estimated repair or replacement costs, and any additional information relevant to the claim. The report serves as a crucial document that helps the insurer evaluate the claim and determine the appropriate settlement amount.
Presenting the Report to the Insurer: After preparing the surveyor’s report, it is submitted to the insurance company handling the claim. The report acts as a formal communication from the surveyor to the insurer, providing a detailed account of the damage and supporting evidence. The insurer reviews the report to verify the validity of the claim and make an informed decision regarding the settlement.
Scope of the work done by Insurance Surveyors
The term “subject matter expert of insurance” refers to individuals who have deep knowledge and expertise in different areas of insurance. These experts can specialize in various types of properties, such as large chemical complexes, petroleum refineries, small garment shops, or even regular households.
The incidents they deal with can range from a single event like a major fire or explosion to natural disasters like floods, cyclones, or earthquakes, which can cause extensive damage to a wide area. In each case, these experts are responsible for assessing and understanding the insurance aspects related to the specific situation and providing guidance and support accordingly.
Assessing the liability of Insurers arising out of the event warrants that the surveyor/assessor must possess knowledge of:
- Plant & machinery, stocks, etc. which are damaged and its costs
- Taxation laws and its applicability in respect of the claim costs
- Is able to detect the signs of fraud – if any and advise insurers suitably
- Is able to take quick decisions. And also help the insured through the process to come back to level at an early date.
- Is able to write a cohesive and comprehensive report to convince the reinsurer’s claim manager (who may be sitting 3,000 Kms away) to write the cheque
Insurance surveyors as an “unbiased, independent third party” with no conflict of interest issue the assessment report. Insurance companies cannot employ many persons having knowledge about diverse fields to be able to assess the losses correctly and their reports
could be challenged in courts “being the report of an interested party”.
Training in Forensic Accounting
In today’s dynamic business landscape, the role of insurance surveyors has become increasingly important. These professionals play a crucial role in quantifying damages during insurance claims. Particularly in cases of fire or motor incidents. However, as the nature of risks and fraudulent activities continues to evolve, it has become essential for insurance surveyors to expand their skill set and stay updated with the latest industry trends. This is where the Certified Forensic Accounting Professional (CFAP) course offered by Indiaforensic comes into play.
The CFAP course provides insurance surveyors with a comprehensive understanding of forensic accounting concepts and techniques. Moreover, they learn about the various types of fraud, financial irregularities, and unethical practices. By acquiring this knowledge, surveyors can better identify potential red flags and effectively evaluate the veracity of claims.
Strengthening Investigative Skills
One of the key aspects of the CFAP course is enhancing investigative skills. Insurance surveyors learn the methodologies and tools used in forensic accounting investigations. They gain expertise in analyzing financial statements, detecting anomalies, and uncovering hidden patterns of fraud. This empowers them to conduct thorough investigations and present accurate reports, strengthening their credibility as professionals.
Fraud Prevention and Risk Mitigation
The CFAP course also equips insurance surveyors with the knowledge and skills to prevent fraud and mitigate risks. They learn about effective internal controls, risk assessment techniques, and also fraud prevention strategies. By applying these principles, surveyors can contribute to reducing the occurrence of fraudulent activities. It helps in protecting both insurers and policyholders.
Career Advancement
Obtaining the CFAP certification opens up new avenues for insurance surveyors in their careers. It not only enhances their profile but also demonstrates their commitment to excellence and integrity. Employers value individuals who possess expertise in forensic accounting, as it directly contributes to the accuracy of insurance claims assessments. The CFAP certification also provides surveyors with a competitive edge, leading to better job opportunities and career growth.
