Insurance Survey Reports are not always final

When an insured person files a claim for fire, health, marine, or other types of insurance policies, the claim often hinges on the surveyor’s report. Under Section 64-UM of the Insurance Act, 1938, insurers must appoint licensed surveyors for claims above ₹20,000. These surveyors are tasked with assessing the loss and helping the insurer decide the claim amount.
But disputes frequently arise: some courts say the surveyor’s report is final, while others say it is only an opinion that can be challenged. This puts the insured in a confusing position. Let’s break it down and see what an insured person can do in such cases.

The Legal Position: Final or Not?
- Courts treating it as final: Surveyors are considered technical experts. Their reports are given high evidentiary value and are not to be interfered with unless there is bias, bad faith, or glaring errors.
- Courts treating it as not final: The Supreme Court has clarified in cases like New India Assurance Co. Ltd. v. Pradeep Kumar (2009) that surveyor reports are “important pieces of evidence but not sacrosanct.” They can be rejected if they are arbitrary, inconsistent, or contradicted by stronger evidence.
The balanced position: A surveyor’s report is not binding on the insured, the insurer, or the court, but it cannot be brushed aside without good reason.

What the Insured Should Do
If the surveyor’s report undervalues or wrongly rejects the claim, here are the steps the insured can take:
1. Examine the Report Carefully
- Check for errors in facts, valuation, or methodology.
- Did the surveyor ignore certain damages?
- Were wrong details about the insured property or policy noted?
- Did they undervalue the loss?

2. Gather Counter-Evidence
- Repair bills, medical bills, or invoices, depending on the policy.
- Photographs of the loss or damage.
- Independent technical or medical reports.
- Witness statements, if relevant.

3. Make a Representation to the Insurer
- Submit a written objection to the insurance company, pointing out discrepancies.
- If the report is clearly flawed, request the insurer to appoint another surveyor as allowed under IRDAI guidelines.

4. Escalate if Needed
- Insurance Ombudsman: A free, fast-track remedy for disputes up to ₹30 lakh.
- Consumer Commission: File a complaint under the Consumer Protection Act for deficiency of service.
- Civil Court or Arbitration: Useful for high-value or complex claims.

5. Legal Strategy
- Courts give weight to survey reports but are open to challenge if backed by strong evidence.
- The insured’s job is to produce credible, alternative proof so that the court or forum can look beyond the surveyor’s findings.

Conclusion:
Surveyor reports carry weight in insurance disputes, but they are not the last word. For insured persons, the key is to act promptly, collect solid evidence, and challenge unfair assessments through proper channels. By doing so, they can prevent under-settlement and secure a fair claim amount.