Financial Daily from THE HINDU group of publications
Tuesday, Aug 23, 2005
Financial Daily from THE HINDU group of publications Tuesday, Aug 23, 2005 |
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Money & Banking
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General Insurance Logistics - General Insurance Government - E-Governance Pilot project for online motor claims processing under way Radhika Menon
Mumbai , Aug 22 THIS might bring a smile to car owners who have waited endlessly for their motor claims to be settled. A few general insurers and car dealers are in pilot projects to assess online processing of motor claims. This means that once a vehicle's repair estimate is created, the surveyor submits a report and the insurance company approves or disapproves online and in a matter of hours. In European markets such as the UK, Germany, Switzerland and France, 90 per cent of the claims are processed online. Audatex India, a division of the US-based ADP Private Ltd provides software that allows for manufacturers, insurers and repairers to process claims online. The software has data of `live' parts (latest parts' price or number change) and labour time data of several car models. Surveyors can view images of the damaged cars and insurance companies can view all these details online. According to Mr Pankaj Kapoor, CEO, Audatex India, a pilot project of this software has been put in place by auto companies such as Maruti and Daimler Chrysler; and by insurance companies such as New India Assurance, Bajaj Allianz and Royal Sundaram. "The estimates will be made quicker, and it will be more accurate and standardised. A door changed in Chandigarh will be the same as a door changed in Coimbatore, given differences of labour rates as allowed by the car manufacturer," said Mr Kapoor. In fact, the software has the facility whereby the customer can lodge his claim on-line, he added. However in the present pilot phase of implementation of the new system customers would still have to fill out a physical piece of paper to register the claim. An official of an insurance company implementing the pilot said the biggest advantage in processing claims online was the reduction in the time (down to a few hours from 3-4 days) required to prepare and agree on estimates. The software also specifies the number of man-hours required to repair a part — insurance companies and dealers spend much time bargaining over this. The general opinion among car dealers and surveyors is that private insurance companies are more likely to implement such software because their international partners have completely online systems. A senior official at a car dealership said, "What is useful about this software is that each and every part of every vehicle is loaded onto the system and complex estimates can be made with ease. However, the bargaining with respect to whether a part needs to be replaced or repaired will not change." Companies such as HDFC Chubb and Bajaj Allianz have already made the claim settlement system between the insurance company and the surveyor online. However, surveyors are still not completely convinced about the benefits of an online system. Mr Mahendra Dhruva, National President, Institute of Insurance Surveyors, said that even with an online system, surveyors would have to physically examine the car and certify the damage. He added, "This system will, however, expedite the process of claim settlement and that is something surveyors will be grateful for." In the recent Mumbai floods, 15,000 cars and 30,000 three-wheelers were lying in wait for repairs. An online system could make that wait shorter.
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