role and duties of a loss adjuster

8/2/2019 Role and Duties of a Loss Adjuster

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OriginsINDEPENDENT LOSS ADJUSTERS do not appear

to have existed until the early 1800s.

Introduction of fire insurance on buildings, shortly

after the Great Fire of London from 2 to 5 September1666, that heralded the beginning of the profession.

Initially managers of insurance companies assessedthe amounts of losses themselves, but soonindependent surveyors or builders were employed toadvise on the settlement of building claims.

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The Great Fire of London, 1666

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The Great Fire of London, 1666


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OriginsBy 1800, two or three principal Fire Offices were

appointing assessors to act for them exclusively.

A number of the present-day loss adjusting firmshave histories dating back to this time, more than

200 years ago.

In 1941, prominent members of the professionformed The Association of Fire Loss Adjusters.

First occasion on which the word adjuster cameinto common usage, previously these individuals had

been known as assessors.

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Origins

During and after World War II, the Associationbegan to exercise control over all aspects of theprofessional standards and conduct of their members.

In 1961 the Association was granted a Royal Charter.

Title of the original Association was altered to TheChartered Institute of Loss Adjusters (CILA), andthe Grant of Arms was received in 1979.

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Other Adjusters Associations

AICLA Australasia CIAA Canada

FUEDI Europe

LAAJ Japan

IIISLA India

AMLA Malaysia

ILAN Nigeria

ILASA S. Africa SLALA Sri Lanka

IILA lllinoisALOSI Chile

NAIIA USA LAAS Singapore

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Loss AdjusterPerson employed in a professional capacity inconnection with adjustment of losses.

Loss AdjustmentThe ascertainment of the amount of indemnity

which the Insured, after all allowance and deductionmade, is entitled to receive under the policy and thefixing of the proportion which each Insurer is liable topay.

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Role of a Loss Adjuster

Basic duties of a loss adjuster

Establish facts to determine:

a) Policy Liabilityb) Quantum

c) Recovery

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Basic steps for determination of liability:

a) Identification of property insured

b) Verification of location of risk

c) Establish ownership or insurable interest

d) Establish causee) Relate findings to policy provisions

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Role of a LossAdjuster


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Role of a Loss AdjusterBasic steps for determination of quantum:

a) Determine nature and extent of damage

b) Establish method of making good damage

c) Establish costs of making good damaged) Deduct costs which are not direct result of an

insured event or are within policy exclusions

e) Deduct allowance for depreciation, if applicablef) Establish residual or salvage value, if applicable

g) Apply policy limitations, e.g. excess, limit of

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Role of a Loss AdjusterProcedures normally adopted by a loss adjuster:

a) First Visit

i. Introduction to Insured and explanation of role

ii. Preliminary enquiry and inspectioniii. Identify and initiate mitigating measures

iv. Plan detail work on investigation of liability,

quantum and recoveryv. Discuss method(s) of establishing loss

vi. Obtain all available documents and request for

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Role of a Loss AdjusterProcedures normally adopted by a loss adjuster:

b) Preliminary advice of circumstances, nature andextent of damage and reserve to Insurer.

c) Submission of preliminary report to Insurer.

d) Continue enquiries into liability, quantum andrecovery. This would involve further inspections,enquiries with Insured, suppliers, repairers,police, fire brigade and other sources.

e) Update Insurer of developments at each stage ofprogress or at regular intervals; seek instructionon matters as and when required.

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role and duties of a loss adjuster

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