MOTOR insurers are ready to adopt the centralised database of motor
repairs estimation, in line with Bank Negara Malaysia’s directive that
all vehicle accident claims use a standardised database for motor parts
prices and labour charges in estimating repair cost.
Yesterday, more than 40 members of the General Insurance Association of
Malaysia (Piam) endorsed the use of the Internet- based centralised
database, which provides standards and reduce subjectivity in claims
estimations and assessments.
Piam has appointed Motordata Research Consortium Sdn Bhd (MRC) to
realise Bank Negara’s requirement for a centralised database on motor
parts prices and repair times.
The central bank had required insurance companies to use the database
back in October 2001, but the slow adoption process prompted it to set
June 30 this year for 60 per cent usage and end of this year for full
usage.
MRC chief operating officer Khaeruddin Sudharmin said the current
response from the insurance fraternity to the database had increased
tremendously from earlier this year.
“Some 12,800 claims were referred to the MRC last month out of an
average 15,000 monthly claim cases filed by insurance companies.
“To date, the MRC database has prices of 272 derivatives of 14
different vehicle makes, which cover more than 89.7 per cent (total
industry volume) of private vehicles on Malaysian roads today,” he said.
Khaeruddin was speaking to reporters after a signing ceremony for the
centralised database motor repairs estimation between the company and
motor insurers in Kuala Lumpur yesterday.
The event was witnessed by Bank Negara assistant governor Datuk Mohd
Razif Abdul Kadir. Also presdent were MRC chairman Datuk Mohd Hilmey
Mohd Taib and Piam chairman Anuar Mohd Hassan.
The MRC database is mirrored after the world-recognised Thatcham Parts
and Repair Times Database. The computerised estimating systems will
provide users with access to the database for itemised estimates to be
prepared, adjusted and approved.
Composite and generic repair times are also available to provide
standards and guidelines to repairers, loss adjusters, insurers and
vehicle owners to enable them to know when a damaged car can be repaired
and put safely back on the road.
“We originally charged RM20 per claim reference, but have since reduced
it to RM10 for insurance companies after a negotiation with Piam.
“This initiative will benefit all industries and individuals associated
with motor insurance claims and instil greater professionalism,
transparency and consistency in motor insurance claims,” Khaeruddin added.
MRC, a subsidiary of HeiTech Padu Bhd, also works with Thatcham to
audit and certify front-end estimating systems for compliance to both the
database and the claims processing centre (CPC), which provides
electronic connectivity between all database users.
Statistical data from the CPC are collected for Bank Negara and Piam
for analysis and management purposes. Some of the added benefits of the
CPC is its ability to monitor and track fraudulent claims, including
providing history on vehicles and their owners.
