Malaysian Technology for Indian Motor Insurance Market

Monday, 6 July 2009, Chennai, India – CMS I-Systems Berhad, a Malaysian Multimedia Super Corridor (MSC) status company, will be bringing its proven technology solutions developed in Malaysia to the Indian motor insurance market. Following the signing of a joint-venture agreement here today between CMS I-Systems Berhad and West Asia Exports and Imports Private Limited of India, the newly formed ETA CMS I Solutions Private Limited will develop an integrated motor claims management service.

The initial roll-out of the custom-made service will be in four major Indian cities – Chennai, Mumbai, Delhi and Kolkatta – starting later this year. Expansion to more cities across India is on the cards.

Designed to provide an end-to-end service to the insured in times of a road accident, ETA CMS I Solutions’ motor claims management service will combine survey of the accident, estimation of repair costs, obtaining approvals required, administration of workshop repairs, and final payment.

With the transparency afforded by a web-based system and audit trail, the new system is expected to reduce the incurred claims ratio for insurers. Panel workshops will be able to speed up repair work with original spare part replacements and receive faster payment from the insurer through the automated system.

Accident surveyors will also enjoy improved efficiency and faster processing time by using the web-based system to send images and photos of the damaged vehicles and for submitting of reports on-line. Similarly, the insured stands to gain with the speedy administration of claims, faster delivery of repairs and replacement with original spare parts for better safety.

According to CMS I-Systems Berhad Chief Executive Officer, Syed Zafilen Syed Alwee, “The joint-venture will combine a proven automated claims process model by CMS-I Systems with state-of-the-art technology and local insight and expertise from our Indian partner. Together, we look forward to delivering a custom-made ‘one stop call solution’ for the Indian motor insurance market.”

“The potential for growth in the motor insurance market in India is huge. Chennai alone, considered to be the motor capital of India, has 2 million motor vehicles. Mumbai, Delhi and Kolkatta have millions more. There is a big opportunity to service an uncontested market and provide improved efficiency, faster settlement of claims, and transparency. There will be overall increased customer satisfaction for the insured, insurance companies and motor industry.”

CMS I-Systems Berhad is a member of the Cahya Mata Sarawak Berhad (CMS) group, listed on the Main Board of Bursa Malaysia. Incorporated in 1991, CMS I-Systems has won numerous local technology awards for its innovative solutions for back-end support in the insurance and financial sectors. Its achievements include successfully developing domain technology solutions for life and non-life insurance companies in Malaysia, China and India. Its first foray into the Indian market was in 2007.

West Asia Exports and Imports Private Limited is a member of the diversified ETA STAR Group headquartered in Dubai and with offices in 23 countries. Registering an annual turnover of USD 5 billion for its FY2008, ETA STAR’s numerous businesses in 16 industries include contracting, engineering, trading, shipping, real estate, automobiles and services. With ETA STAR’s tag-line ‘Built on Trust’, its subsidiary West Asia Exports and Imports will immediately leverage on its network of motor dealerships and workshops in Chennai as well as wide customer reach in India’s other major cities to roll-out the joint venture’s new integrated motor insurance claims management service.

Describing the joint-venture between CMS I-Systems and West Asia Exports and Imports as ‘off to the right start’, CMS Group Executive Director, Syed Ahmad Alwee Alsree is optimistic on the possibility of more business collaborations between CMS Group and ETA STAR in the future.

CMS I-Systems Berhad holds a 70% stake in the joint-venture. The balance 30% is held by West Asia Exports and Imports Private Limited.