WO2015001477A2

WO2015001477A2 - An electronic system and method for implementing a vehicle insurance plan

Info

Publication number: WO2015001477A2
Application number: PCT/IB2014/062751
Authority: WO
Inventors: Anton Jason OSSIP; Yehuda Aryeh HOCKMAN
Original assignee: Discovery Ltd
Current assignee: Discovery Ltd
Priority date: 2013-07-05
Filing date: 2014-07-01
Publication date: 2015-01-08
Anticipated expiration: 2016-01-05
Also published as: WO2015001477A3; ZA201404898B

Abstract

A method and an electronic system for implementing a vehicle insurance plan includes a communication module to receive from a vehicle owner a write off selection for an insured vehicle. An assessment module receives a claimed amount from the vehicle owner after the insured vehicle has been damaged and uses the claimed amount and the write off selection to determine if the claimed amount or insured value of the vehicle is to be paid. This is done as follows, the write off selection received from the vehicle owner is a percentage amount. This is multiplied by the vehicle's insured value to arrive at a write off value which is compared with the claimed amount. If the claimed amount is greater than the write off value, the insured value of the vehicle is authorised for payment.

Description

AN ELECTRONIC SYSTEM AND METHOD FOR IMPLEMENTING A VEHICLE INSURANCE PLAN

BACKGROUND OF THE INVENTION

The present application relates to an electronic system and method for implementing a vehicle insurance plan.

As a general rule, a vehicle involved in an accident will be written off by an insurer if the repair cost is more than 70% of the vehicle value. In such a case, the insured person will be paid out the full insured value while the damaged vehicle will be auctioned for spare parts. On average, 30% of the value can be recovered through the auction.

When a vehicle has significant damage but it is below the 70% threshold, the owner will often prefer to have the vehicle written off than repaired. However, this is not an option provided and so simply does not occur.

The present invention seeks to address this. SUMMARY OF THE INVENTION

According to one example embodiment, an electronic system for implementing a vehicle insurance plan includes: a communication moduie to receive from a vehicle owner a write off selection for an insured vehicle; a memory for storing the write off selection and an insured value of the vehicle; an assessment module for receiving a claimed amount from the vehicle owner after the insured vehicle has been damaged and for using the claimed amount and the write off selection to determine if the claimed amount or insured value of the vehicle is to be paid and then authorising a payment for either the insured value of the vehicle or the claimed amount; and a payment module, responsive to the assessment moduie, to prepare a payment message and to transmit the payment message to a payment system to effect the payment of either the insured vaiue or the claimed amount.

The write off selection received from the vehicle owner may be a percentage amount in which case at the time of a claim the percentage amount is multiplied by the vehicle's insured value at that time to arrive at a write off value and the assessment module then compares the write off value with the claimed amount and if the claimed amount is greater than the write off vaiue, the insured vaiue of the vehicle is authorised for payment.

In one example embodiment, a premium module determines a premium payable wherein the premium amount is related to the write off selection. Typicaily, the !ower the selected write off selection the higher the premium payable.

According to another example embodiment, a method for implementing a vehicle insurance plan, the method including: receiving from a vehicle owner a write off selection for an insured vehicle; storing the write off selection and an insured value of the vehicle; receiving a claimed amount from the vehicle owner after the insured vehicle has been damaged and using the claimed amount and the write off selection to determine if the claimed amount or insured value of the vehicle is to be paid and then authorising a payment for either the insured value of the vehicle or the claimed amount; and preparing a payment message and transmitting the payment message to a payment system to effect the payment of either the insured value or the claimed amount.

BRIEF DESCRIPTION OF THE DRAWINGS

Figure 1 is an example system for implementing a vehicle insurance plan; and

Figure 2 is a block diagram illustrating an example method of implementing a vehicle insurance plan. DESCRIPTION OF EMBODIMENTS

The system and methodology described herein relate to a vehicle insurance plan.

The vehicle insurance plan will typically relate to a motor vehicle but could relate to any other vehicle.

The owner of a motor vehicle insures the motor vehicle against damage to the motor vehicle in the event that the motor vehicle is in an accident.

If the motor vehicle is in an accident, the damage to the motor vehicle is assessed. If the motor vehicle can be repaired then the insurer pays for the repairs.

If the motor vehicle cannot be repaired, then the insurer pays for a replacement motor vehicle at a predetermined insured value of the vehicle. if the motor vehicle can be repaired but the cost of the repair is above 70% of the insured value of the motor vehicle, then the insurer pays out the insured value of the motor vehicle and sells the damaged motor vehicle to recover some costs.

The figure of 70% is not arbitrary, as on average approximately 30% of the value of the damaged motor vehicle can be recovered through the sale for spare parts and so it makes no difference to the insurer if the motor vehicle is repaired or replaced at that point. It is worth noting that for some cars slightly more than 30% can be recovered but in either case the car owner is not given the option of selecting this percentage upfront. in any event, as mentioned above, when a vehicle has significant damage but the cost of repairing the vehicle is below the 70% threshold of the insured value of the vehicle, the vehicle owner will often prefer to have the vehicle written off than repaired. The reasons include: • Even when repaired, the vehicle will have lost significant value due to its involvement in a serious accident

• The owner is worried that the vehicle will "never be the same" after such extensive damage

• The repair process will be very lengthy due to the extent of the damage

However, this option is not offered to the vehicle owner by insurers.

Referring to the accompanying Figures, an electronic system includes a server 10 that includes a number of modules to implement the present invention and an associated memory 12.

In one example embodiment, the modules described below may be implemented by a machine-readable medium embodying instructions which, when executed by a machine, cause the machine to perform any of the methods described above.

In another example embodiment the modules may be implemented using firmware programmed specifically to execute the method described herein.

It will be appreciated that embodiments of the present invention are not limited to such architecture, and could equally wei! find application in a distributed, or peer-to-peer, architecture system. Thus the modules illustrated could be located on one or more servers operated by one or more institutions.

It will also be appreciated that in any of these cases the modules form a physical apparatus with physical modules specifically for executing the steps of the method described herein.

In any event, a communication module 14 receives from a vehicle owner a write off selection for an insured vehicle. ln the example embodiment, the write off selection is expressed as a percentage of the insured value of the vehicle.

For example, the write off selection could be 30%, 40%, 50% or any other suitable percentage.

The write off selection and an insured value of the vehicle are stored in the memory 12.

The insured value of the vehicle is determined with regard to existing industry vehicle valuations which are readily available and which determine current market related valuations for all makes and models of motor vehicles.

In addition to the above, a premium module 16 determines a premium payable wherein the premium amount is related to the write off selection and to the insured value of the motor vehicle.

In one example embodiment, the determined premium amount is selected as follows where the possible write off selection is either 30%, 40% or 50%:

The premium amounts in the table are payable over and above the normal insurance premium amounts for the respective motor vehicle. Thus it will be appreciated that the lower the write off selection the higher the additional premium payable.

If the motor vehicle is in an accident, the motor vehicle owner will typically send through a claim to have the vehicle repaired.

An assessment module 18 receives a claimed amount. This claimed amount is typically determined by the damage to the motor vehicle being assessed by a panel beater who estimates the cost of the repair and provide this to the vehicle owner and/or the insurer.

The assessment module 18 accesses the database 12 and uses the claimed amount with the write off selection to determine if the claimed amount or insured value of the vehicle is to be paid and then authorises a payment for either the insured value of the vehicle or the claimed amount.

In the illustrated example, a write off value first needs to be calculated by multiplying the selected percentage with the vehicle's current insured value which is then compared to the claimed amount.

The assessment module 18 then compares the write off value with the claimed amount and if the claimed amount is greater than the write off value, the insured value of the vehicle is authorised for payment.

A payment module 20 is responsive to the assessment module 18, to prepare a payment message and to transmit the payment message to a payment system to effect the payment of either the insured value or the claimed amount. in one example embodiment, the payment system is the payment system of a financial institution such as a bank.

An example of the above is if a motor vehicle has a current insured value of R100,000 and the vehicle owner selects a 40% write-off amount the vehicle owner will then pay a premium of R80 over and above their normal insurance premium for the motor vehicle.

If the vehicle is in an accident and the cost of repairing the vehicle will be R50.000. This is more than 40% of the current insured value of the vehicle and so the vehicle owner will be paid out for the current insured value being R100,000. The insurer will take the damaged vehicle to sell for parts.

If the damage to the vehicle was R39,000, this is less than 40% of the current insured value of the vehicle and so the insurer will pay for the repairs to the vehicle to the amount of R39.000.

The advantage of the above system and methodology to an insurer is:

• Creating a less price sensitive revenue stream in a highly price sensitive market

• Increased client satisfaction

• Reduced claims handling time

Claims

CLAIMS:

1. An electronic system for implementing a vehicle insurance plan includes: a communication module to receive from a vehicle owner a write off selection for an insured vehicle; a memory for storing the write off selection and an insured value of the vehicle; an assessment module for receiving a claimed amount from the vehicle owner after the insured vehicle has been damaged and for using the claimed amount and the write off selection to determine if the claimed amount or insured value of the vehicle is to be paid and then authorising a payment for either the insured value of the vehicle or the claimed amount; and a payment module, responsive to the assessment module, to prepare a payment message and to transmit the payment message to a payment system to effect the payment of either the insured value or the claimed amount.

2. A system according to claim 1 wherein the write off selection received from the vehicle owner is a percentage amount in which case at the time of a claim the percentage amount is multiplied by the vehicle's insured value at that time to arrive at a write off value and the assessment module then compares the write off value with the claimed amount and if the claimed amount is greater than the write off value, the insured value of the vehicle is authorised for payment.

3. A system according to claim 1 further inciuding a premium module that determines a premium payable wherein the premium amount is related to the write off selection.

4. A system according to claim 3 wherein the premium module determines the premium where the lower the selected write off selection the higher the premium payable.

5. A method for implementing a vehicle insurance plan, the method including: receiving from a vehicle owner a write off selection for an insured vehicle; storing the write off selection and an insured value of the vehicle; receiving a claimed amount from the vehicle owner after the insured vehicle has been damaged and using the claimed amount and the write off selection to determine if the claimed amount or insured value of the vehicle is to be paid and then authorising a payment for either the insured value of the vehicle or the claimed amount; and preparing a payment message and transmitting the payment message to a payment system to effect the payment of either the insured value or the claimed amount.

6. A method according to claim 5 wherein the write off selection received from the vehicle owner is a percentage amount in which case at the time of a claim the percentage amount is multiplied by the vehicle's insured value at that time to arrive at a write off value, the write off value is then compared with the claimed amount and if the claimed amount is greater than the write off value, the insured value of the vehicle is authorised for payment.

7. A method according to claim 5 further including determining a premium payable wherein the premium amount is related to the write off selection. A method according to claim 7 wherein the lower the selected write off selection the higher the premium payable.