National Insurance Assists for Motor Insurance Policyholders

National Motor Insurance Assists for all to be set up under the New National Motor Insurance Framework?

Insurance Business Model

NATIONAL ASSISTS? SOMETHING WRONG WITH MY TROLLEY.... SEND SOMEONE TO FIX IT!

Setting up a National Motor Insurance Claims Assists Center for the purpose of providing prompt services immediately at the time of accident…. Perhaps this is a great idea or maybe just something the industry needs to do to get some small increases in Motor Insurance premium come 2012?

Couple of days ago Telekom Malaysia made a presentation to PIAM attended by numerous committee members representing the Motor sub-comm and the Claims sub-comm as well staffs from both ISM and PIAM. It was a RM6.8 million (payable over a period of 5 years) proposal on a claims response center setup for the industry. As usual this does not include various incidental charges along the way.

The centre is in a nutshell proposed to cater for:

  1. emergency response engagements
  2. filtering crank calls
  3. a linkup to ISM database for acquiring Insured’s vehicle details and insurer related info
  4. diverting filtered calls to identified insurer(s)’ own Road Assist for despatch of tow truck and accident assistance to scene of accident
  5. provide geolocation information including compiling relevant accident related info for downstream claims handling and investigation

A RM6.8m system for doing small things?

“What is this linkup with ISM to acquire Insured’s details…. and what are the additional costs?

What is Telekom Malaysia’s role in the equation other than providing the contact base and some oversize memory bank for recording of whatever? Do they need to be in the picture and what is this Professional Operator Dispatch (POD)?

Telecom actually outsource the follow up to POD to appoint the non-emergency service providers, like towing services according to the directive as provided by the respect insurance companies. Can’t the industry just do this on its own?

An emergency center or a motor accident assistance contact?

Do we really need a centralise emergency response centre and is it the industry’s duty to provide such emergency response? As it is being practiced currently, industry is already providing Road Assist to help Insured resolve their vehicle (emergency) problems. The insurance industry can help build a national assists contact center but it should not get involve with setting up of any emergency response center, which is the domain of the various government departments…. and therefore none of the industry business!

Whether it was a wrong choice of words, please leave the emergency matters out of the equation, the most the industry can do is to merge those existing road assists programmes and motor accident insurance-related assists into this (proposed) national contact assists centre.

Filtering crank calls is not really any unique value proposition, any Road Assist contact centre would have gotten the job done efficiently. Moreover, this contact centre is merely for those who purchase Private Vehicle Comprehensive policy not for everyone! There is no reason why we should rush to provide this same platform for the commercial policyholders…. Just stick to private cars that are insured on comprehensive cover, something the industry is familiar with….

By the way this Telekom’s proposal MERS999 is only a Klang Valley and Selangor thing so why call it the National Contact Centre! Even if it eventually gone live nationwide that would have costs the industry an arm or a leg. Also think about the linkup to ISM…. that would be costly too!

Is there any better way to build such a National Contact Centre?

Before proceeding further we might as well call it National Motor (Private Car) Comprehensive Insurance Assist, we can expand this subsequently when the industry is much able to deal with the rest of the motor classes.

There is really no reason why the industry should be called to set up a contact centre for all policyholders, suffice if we could get the current road assists model working on an industry-wide going nationwide.

All the existing Road Assist providers are given a chance to do a JV with selected partners to bid for rights to provide and operate the designated centre. Centre should be based on area of operation.

“Giving entrepreneurial opportunities to existing Road Assists Providers….”

What say you if we divide the operation into 5 main areas – northern, southern, central, Sarawak and Sabah? In this way the industry would be able to keep the existing service providers and yet provide additional platform for them to excel further from an entrepreneurial perspective. And certainly, we are all more familiar with them, at least that’s from the operational model and service standard level.

What do you think? Slam your comment in the comment box below, tell it like it is….

 

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5 comments for “National Insurance Assists for Motor Insurance Policyholders

  1. February 21, 2013 at 22:41

    Whwn is this going to be implemented?

  2. RST
    November 15, 2011 at 16:38

    Maybe looking on the source of the problem would better suffice – INSURANCE EDUCATION. There is still a lack of understands towards this.

    This is where enhancing the services offered by agents would be a more cheaper alternative instead

  3. Anonymous
    August 8, 2011 at 10:26

    what is this national insurance assist all about? why do the authority wanted to set this up?

    • August 21, 2011 at 22:31

      Nat Assist is supposedly a joint industry with takaful effort to provide a common platform for road assistance to consumers (policyholders) during an accident. Whenever there is an accident insured merely need to call Nat Assist for advice on next best thing to do…. In this way the industry would be kept inform of any vehicular accident immediately…. And info are better collected and collated to help reduce fraud and parties massaging the claim

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