No Claims Discount online – A connectivity-controls issue….


No Claims Discount online at Point of Sales (POS) - Adopting controls according to whims and fancies?

On 1st July 2010, the nation’s No Claims Discounting (or NCD in short) system has finally gone online. Despite all the grumblings, howlings and discontentment over the forced implementation among various stakeholders, things seemed rather quiet – perhaps for the real grouses and the complaints to move up the complain-channels, this would surely takes time. And two days after implementation….  the weekend came along may have also camouflaged alot of things……

Notably most insurers / takaful operators did put in various CONTINGENCY related options in anticipation of any untoward incidence that may arise during and after the implementation date. In this context, we think it is appropriate to discuss some of the CONNECTIVITY-CONTROLS issues at the front-end point-of-sales (PoS) system.

The following are FOUR main options that stakeholders could take as these are made available by some of the GATEWAY PROVIDERS….

The controls made available at the front-end Point-of-Sales (PoS)
  1. Full Control – This simply means the PoS system is set for total compliant with the ISM – NCD standard operating procedure
  2. Partial Control – meaning the users at the PoS are able to change the % of NCD whenever prescribed error codes appeared during the confirmation process
  3. Opened Control – While the PoS system and the ISM – NCD integration system are still linked, the NCD confirmed at the PoS could still be amended by the users
  4. No Control – The link between the PoS and ISM – NCD system is cut off leaving confirmation of NCD in the hands of the users, much like going back to the old practices.


It doesn’t take much analysis for one to realise that only OPTION 1 is the type of connectivity control allowed within the ISM’s standard operation procedures BUT why were the other three options managed to find their places within this implementation?

We think this situation arose as a result of “unsupervised” and “uncontrolled” integration works done in between those PoS and ISM-NCD systems – naturally if the gateway providers take work-orders from the stakeholders, they would be more aligned towards carrying out those business requests and put limited consideration on the effective workings of the whole integration system and their implementation.“……the SOP only focuses on NEW cases, leaving individual stakeholders to deal with RENEWALs”



Supposing…. if all stakeholders strictly adopt OPTION 1, there would still be some issues arising within the connectivity-controls at the PoS. Simply puts, the PoS and ISM system-integration is ONLY for those NEW CASES to the stakeholders done at their point-of-sales. This means for those RENEWALS, the NCD % has to be confirmed via data populated over from the stakeholder’s back-end system. Issues concerning synchronisation with the Central NCD database aside…. the level of NCD confirmed at the PoS system can be amended by the users since there are no provisions against such practices in the standard operating procedures.

This would mean, if these were incorrectly done would surely affect data accuracy at the ISM’s managed Central NCD database.

From the layman perspective, this is liken opening the taps and let the inflow of water into the pool with limited control over the quality of the water – surely, subsequent water cleansing works within the pool would eventually prove to be one mammoth task…. and that’s would be… “…all over again!”


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2 comments for “No Claims Discount online – A connectivity-controls issue….

  1. July 4, 2010 at 23:44

    [New Post] No Claims Discount online – A connectivity-controls issue…. – via #twitoaster

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