Press Release:A leading Malaysian motor insurer has commenced using the ISM Automotive Business Intelligence (ISM-ABI) for underwriting motor insurance. The ISM-ABI is an independent vehicle valuation system provided by ISM Insurance Services Malaysia Berhad (ISM).
The ISM-ABI was approved by both Bank Negara Malaysia (BNM) and Persatuan Insuran Am Malaysia (PIAM) last year as an approved reference for use by financial institutions in Malaysia and part of efforts to modernize motor insurance in Malaysia as announced by the government last year.
Mr. Carl Rajendram, Chief Executive Officer of ISM said “The first local insurance company to start using the system online is Kurnia Insurans, the largest motor insurer in Malaysia with 20% market share in motor insurance. Kurnia is using the ISM - ABI System to provide their customers with an indicative value of their vehicle upon purchasing or renewing their comprehensive motor insurance. Kurnia’s customers can therefore be assured that upon a vehicle theft or total loss claim, Kurnia shall pay an agreed insured value proposed by the customer and accepted by the insurance company under this new system”.
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Kurnia’s General Manager for Motor, En Kamal Arifin said “The new ISM - ABI vehicle valuation system is not only a value-added service for our customers but also helps the company in its underwriting control in overcoming issues of over and under-insuring of vehicles by customers. However, with this new system the problem can be resolved as our Agents can obtain the insured value of a vehicle from an independent and well researched database provided by ISM. It’s a win-win situation for Kurnia and its Agents in ensuring the best service to our customers”.
Kurnia has started using the new system online since January 2010 through its Electronic Cover Note (eCN) web-based system for all its 7,000 agents nationwide. They have implemented the system for private cars comprehensive insurance for vehicle below 10 years for 6 common vehicles makes; Proton, Perodua, Toyota, Honda, Nissan and Mitsubishi which makes up 80% of the total passenger cars in the market, and will be extended to other vehicle makes in the future when their agents are fully familiarized with the new vehicle valuation system
Rajendram said that the decision by Kurnia to adopt the new system would ultimately benefit all motor vehicle owners in Malaysia as the system reduced uncertainty and is more transparent for the consumer. ISM looks forward to more companies adopting the new system in 2010.
