The Madras High Court today issued notice to officials, including Insurance Regulatory and Development Authority, on a PIL seeking to stay the operation of the Insurance Law Amendement Act No.5,2015, which stressed the need for new academic qualification for surveyors and assessors, among others.
A division bench of the HC's Madurai bench, comprising, Justice S.Manikumar and Justice G.Chockalingam, ordered notice to officials, including the Finance Secretary and the Chairman of Insurance Regulatory and Development Authority, returnable within two weeks.
The petitioners said as per the amendment, the surveyor must possess academic qualification and be member of the Indian Institute of Insurance surveyors and Loss Assessors(an academic qualification).
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It said no person shall act as surveyor or loss assessor in respect of general insurance business after the expiry of a period of one year from the commencement of the Insurance law Amendment Act of 2015.
The petitioners said "amendment provided unlimited and unchannelized and unguided discretion to the authorities." They had been granted license that would expire only after two or three years. Having conferred the vested right, they cannot take away the same, they said.
As per the amendment, the assessors would have to subject to new qualification and automatically get disqualified after one year. This was against constitution, it was submitted.
The right to act as assessor/suveyor was the intangible property of the petitioners and they could not be deprived of their right. They also sought a direction to stay the implementation of the Amendment Act 2015 (Act5) and also quash the amendment.
