All you want to know about... MOTOR INSURANCE
| Insurance firms to adopt new parts pricing system |
The following article is extracted from:
The STAR THURSDAY 20 November 2003
Insurance firms to adopt new parts pricing system
PIAM will monitor all its approved workshops and they will be deregistered if they receive 2 complaints from insurance companies - Chairman Anuar Mohd Hassan
INSURANCE companies will adopt the new centralised motor parts pricing system next month to standardise the cost of repairs and car parts for passenger vehicles in the country.
Motordata Research Consortium Sdn Bhd (MRC) chief operating officer Khaeruddin Sudharmin said the system, which had received support from 40 insurance companies, was expected to process some 15,000 claims a month. "The system will give the first reference point for drivers who send their cars for repairs at workshops approved by Persatuan Insuran Am Malaysia (PIAM)," he said at a signing ceremony with PIAM in Kuala Lumpur yesterday. MRC is a unit of Heitech Padu Bhd, which has won a concession to collect database for car parts and repairs made through PIAM-approved workshop operators. MRC database system will be used by workshop operators to obtain estimates of cost for car repairs for the purpose of making insurance claims.
Despite the latest move, PIAM said insurance companies would not be fully protected from fraudulent motor claims. "They are some we can control and something that we cannot," added PIAM when asked whether the system will be fool-proof. It is noted that this system would only list new car parts approved by car manufacturers and not second-hand car parts available in the market and would not prevent car owners from accepting cheaper second-hand parts. The system would, however, significantly reduce false claims, which could arise from either the policyholders or workshop operators. "PIAM will monitor all its approved workshops and they will be deregistered if they receive two complaints from insurance companies." MRC would be able to track claims history of vehicles and their owners and the feature could discourage them from making fraudulent claims.
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