endroog

This article is taken from The Star Online >> http://thestar.com.my/news/story.asp?file=/2007/1/15/nation/16574765&sec=nation

Insurer boycott by mechanics (15 Jan 2007)

By AUDREY EDWARDS and LOW BOON TAT

SEREMBAN: Mechanics who are members of the Federation of Automobile Workshop Association of Malaysia (FAWOAM) are boycotting a insurance firm for “unfair treatment”, its president Cho Chee Seng said.

Cho: Says move would affect 100 vehicles daily

He said a major complaint was that the insurer continued to give “lump sum repair offers” which meant that items like parts or labour data were not itemised.

“Members feel unfairly treated by the insurer. We end up doing jobs that are sometimes insufficient or difficult to cover. And the consumer ends up feeling that we have cheated them,” he added.

“Cost shifting occurs during the process of preparing an estimate or final bill for repairs. This may involve adding unnecessary procedures or exaggerating labour time or costs in one area to offset costs not included elsewhere in the damage appraisal or final bill.

“It can be perceived as fraud by consumers or regulators, even if the final payment by the insurer is deemed reasonable by the workshop.”

Cho said that members would continue to service existing cases at their workshops. However, for new cases where vehicles were towed to the workshop, a vehicle owner would be given 48 hours to remove their vehicle if it was insured by the said company. They would also have to pay the towing charges.

He said that if the consumers wanted their members to repair the vehicles, transaction would have to be in cash and they would be able to submit a claim to the insurer for reimbursement.

He said that the move would affect about 100 vehicles daily.

There are 1,200 FAWOAM members who are involved in repairs of vehicles involved in collisions.

The federation’s total membership is about 3,200.

Members also complained that the insurer had insisted that all third-party motor claims must go through its panel workshop system while the consumer was not required to use such a facility.

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Foooh… at last these people have the balls to strike. A check with a local Klang Valley workshop guy, I was told that they are boycotting one particular insurance company in Malaysia. The biggest motor insurer. Yeah…. thats K Insurans Bhd.

I’ve been listening to almost every workshop operator dissing this insurance company since the day I join this industry 4-5 years ago. Same shit everytime. Now they (the frogs) have came out from coconut shell and they’re doing something for themselves, for their business, for the economy, for the livelyhood of everyone.. at least in the automotive industry.

I wish them luck. STRIKE! STRIKE! STRIKE!