General insurers after bargaining with hospitals for reducing charges turned their back towards the auto industry.
General insurers after bargaining with hospitals for reducing charges turned their back towards the auto industry. It is known that the general insurance sector pays for most of the repairs hence they turned towards the auto industry to bring down cost of repairs. Surprisingly, the auto companies reverted back in a positive manner and accepted the cut off in repair costs.
The recent times it has been noticed that companies negotiate with the auto companies manufacturers. Apart from sharing of claims data with various insurance companies they are also the ones recommending changes in the processes which may include anti theft devices to dent removing equipment. In all this hustle and bustle, it has been a big task to include big companies like Maruti and Honda into the plan for supplying child parts inorder to bring down the cost drastically.
For example: In initial times, if a headlight got damaged the assembly had to replace which was quite an expensive deal, hence it became important to remind the auto companies to tell, that if they did not supply child parts the cost of the repair would be more costly because the premium of the same could increase. Hence, now in case of a dent in a four year car the owner has to bear half the cost because of depreciation and if the dealer had an high-tech dent equipment repairs on the same can happen at the fraction of the cost.
To make auto makers aware, many private companies are now making use of the data and approaching manufacturers and encouraging them to introduce child parts to bring down the costs. In fact, there have been constant attempts to standardize the cost of parts and labor.