According to sources warranty fraud is estimated to be 3 to 15 percent of the total warranty cost. Currently making the warranty process fraud free is the primary task of OEMs and they need the best tool to do so.
Warranty Framework For Fraud Claim Management
So, what can OEMs do to detect fraud claim, and save revenue? There may a number of methods available traditionally. Traditionally, claim validation has been the main control method. But this method is not enough and OEMs need digital software to control and maintain whole process.
OEMs need to set rules and regulation to control whole process of warranty and claim management of spare parts. In claim validation, one need clear insights to act upon the situation and accept or reject claim accordingly.
Warranty claim management is alone enough to build bulletproof validation and control chain process for claims. For OEMs it is always possible to customize the rules accordingly or according to business rules.
The digital analytics can help them to indicate potential issues, and it provides transaction level resolution. One can set resolution for each claim – approved, rejected, approved with modifications.
Having a proper warranty claim management not only improves fraud detection and prevention, but also provides, transparency and cost control over warranty management as a whole. The system is composed of the following four key elements:
Define the interaction between the warranty provider and the customer, the dealers in the warranty chain and define duties of each of them. The rules are based on customer claim entitlement and service claim validation.
Include processes for handling customer warranty claims and warranty service claims, until servicing and financial settlement of the claim. The main focus is on customer warranty entitlement, and material returns control for defective items.
WMS assist in identifying claims with high likelihood of being unjustified, whether fraud, and identify service agents and/or customers with high propensity to commit fraud.
Warranty claim management set up a structure that eliminate fraud opportunities, incentivizes dealers to right behavior, and provides clear procedure to take action if fraud is detected.
Intellinet has introduced the warranty management software. The software is designed by keeping in the mind the needs of today’s spare part OEMs and manufacturers and dealers. Through this one will be able to manage the warranty of spare part automatically. Into any manufacturing unit there are number of parts and keeping their record manually is very difficult task. But now through this warranty management system one will be able to automate the process, as it is fully capable to track the spare parts under warranty, able to keep records of customers, live tracking of returned spare parts, increase sales by building customer trust, easy claiming making and processing for the defected parts and much more can be done through this.
Having the key elements in place does not automatically guarantee that fraud is under control.
In addition to having all processes and policies – validation rules, claim process, statistical data analysis, customer entitlement – may be in a good shape, warranty claim management tool is a must needed for OEMs. For more details, connect to www.intellinetsystem.com