As published in The Daily Times (Malawi) on August 28th, 2024
Ask any marketing guru and they will probably tell you that successful business goes beyond meeting customers’ expectation. The service that a businessman or businesswoman offers ought to exceed the expectation of his or her customers. This is not just a practice but a business necessity (at least for and to us).
Customer satisfaction is very important in insurance. After all, insurance is nothing but a promise to pay a claim in future. The reputation of an insurer grows or diminishes depending on the way they handle policyholders’ or third parties’ claims.
As a claimant, one expects prompt attention and claim settlement by one’s insurers. The expectation heightens, where, in the case of motor insurance, a damaged vehicle is used as a pool car or is used for ferrying children to and from school or during rainy season.
As a claimant, in order for the insurer to exceed your expectation, you are obliged to play a part. Provide all necessary information sufficiently and timely. It is only after receiving loss details that an insurer decides whether to pay a claim or not.
For a vehicle with a small partial loss, an insurer will consider repair authorization forthwith without involving loss assessors. For big and complex losses, insurers often institute physical examination of the vehicle by its own staff or involve independent parties called loss assessors. Loss assessors are independent of the insurer.
As alluded to, estimated repair costs trigger the decision whether an assessor should be engaged or not. Insurers have thresholds. Any claim that exceeds a certain predetermined threshold will be assessed by an independent party. Claims that fall within a certain band will be assessed internally.
For example, a vehicle valued at MWK2million with repair cost of MWK1.5million warrants constructive write-off. For motor insurers, rule of the thumb is that any repair cost that is 60 per cent of the sum insured or more is written off as total loss.
If the car is repairable, you have freedom to pick a repairer of your choice. Insurers hardly offer advice on car repairers. Stated differently, insurers do not choose repairers for claimants (if you come across a situation where your insurer recommends a certain garage, search me, it is a red flag – there is something behind the recommendation).
In an effort to offer quality service, innovative insurers form what insurance people refer to as accredited repairers. The benefit for a claimant of using accredited garages is a derived one - the claimant benefits from an agreement to which he is not part of. Accredited garages offer agreed prices and standards, guaranteed workshop availability and other courtesy services. In return, the insurer provides steady flow of repair work to the garage. With this arrangement in place, the ultimate beneficiary is the motor vehicle claimant.
I always advise people to insure with insurers who have a panel of accredited motor vehicle repairers, simply because the repairers always work to impress their contracting partner (the insurer). In pursuing this goal, such repairers tend to be customer-focused (not business-focused) and are willing to submit to quality standards.
The other good thing about accredited repairers is that the garage can be trusted to start work immediately, without necessarily waiting for assessor’s report. The assessor may still visit the garage at some time during repair process. If the extent of damage was underestimated, supplementary quotation can be sourced and admitted. Generally, insurers are reluctant to allow supplementary quotation for unaccredited repairers.
Accredited garages also undertake to tow vehicles at no extra cost, if the loss occurs within a certain radius from their workshop. This is another positive aspect for using accredited garages.
I have come across certain accredited garages providing courtesy cars to revered claimants. Courtesy cars are vehicles given by garages for one to use whilst one’s car is being repaired. There is no need for one to raise an invoice to an insurer for a rented vehicle as an alternative transport.
Once your vehicle has been repaired, the garage will ask you to sign a delivery form. Before you sign the form, ensure that you have satisfied yourself that everything, including non-affected areas, is in order. Signing a form denotes satisfaction with repairs done on your car. If you are using an accredited garage, you will be allowed to return the vehicle later, should you find that the vehicle has not been fully fixed.
Views from the top are that accredited motor vehicle repairers offer greater flexibility and value than other arrangements. Find out from your broker if the insurer you use have a panel of accredited garages. In case of doubt, talk to us. We are here to serve.
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