Car evaluation to minimise insurance disputes Part I

KUALA LUMPUR: Car owners can find out the market value of their cars with just a click of the mouse on Malaysia’s first car price online directory which may also help to end valuation disputes between owners and insurers.
The website, carprices.ism.net.my, keeps a database of every car model available in Malaysia since 1999 as well as their specifications.
By keying in the required information on the website, users will find a range of prices, from the lowest to highest, that their cars could fetch in the market.
The online directory is a joint effort between the insurance market information and technology provider, ISM Insurance Services Malaysia Bhd, and automotive business intelligence service provider, EurotaxGlass’s.
Speaking to The Edge Financial Daily at the launch last week, ISM chief executive officer Carl Rajendram said the website would provide more transparency with regards to motor insurance premiums that car owners must pay according to the market value of their cars.
He said the website could be regarded as an “independent valuer” and some insurers had indicated interest to attach the website’s valuation together with the car insurance renewal notices that they send to policyholders every year.
“We want to minimise disputes, that is our objective,” Rajendram said. Up to now, there has not been a single accepted standard database for car value and most car owners either consult car dealers or personally estimate their car value.
This causes problems as car owners could either over-insure or under-insure their cars. Those who over-insured would waste their money unnecessarily on motor insurance and those who under-insured would not be able to claim against their car’s actual value.
There are also cases of insurers not adjusting their premiums according to depreciating car value in their renewal notices. Consequently, some car owners over-insure their cars and disputes arise when they are not allowed to claim the sum insured.