Everything You Wanted to Know About Warranty Claim Management
by Intellinet Jun 11, 2018
The entire warranty process is a very large-scale system and it is a process that begins with a manufacturer and ends with a customer. Warranty management system plays an important role in the automotive industry as it allows automatic tracking of products / services under warranty period, as well as allowing validity to re-import the claim expense. It’s more expensive to process the claims of millions of consumers through thousands of dealers than it is to process the business-to-business claims coming in from just one or two OEMs. This document will provide brief information about automotive warranty claims management features and warranty management solutions that need to be implemented.
Automotive warranty claims management system enables entry of online claims, uploading claims from service systems, verification of claims, and review and processing on comprehensive warranty business rules, as well as device history. Warranty claims allow dealers to create, edit, and process various types of claims including Plant PDI, Dealer PDI, Post Sale Warranty, Campaign, Goodwill, and Spare Parts claims.
For manufacturers with products carrying warranties that require dealers to service them and file claims with the manufacturer on a regular basis, automotive warranty claim management software is like a dream come true. The system covers a complete Warranty Claim processing module that can be tailored to meet the manufacturer’s needs. Save thousands in claim payments by properly tracking, adjudication, and payment of the right claims for the right amount. Intellinet automotive warranty claim management software manages the entire claims process.
Why Automotive Dealers Need Warranty Claim Management Software:
To accurately reflect the nature of the claim, classify it into categories that make sense.
Provide orientation about approximate repair costs.
To keep tight control over what is included in the coverage.
Easily identify the closest and most efficient service personnel.
To monitor and adjudicate the servicer and record performance for future reference.
Store all payment information for report generation.
Warranty Process Flow:
In the automotive industry, a warranty claim will be made when the vehicle is being repaired or the part is defective (from dealer stock or sold and returned in the dealership). Generally, vehicle repair is for vehicles owned by retail customers and for vehicles under active warranty. The dealer who repairs will make a warranty claim. The warranty claim’s warranty will be examined by the investigator and reimbursed for labor and/or materials and/or sublet costs. Here is the basic example of the process workflow that an automotive part should pass through when it comes to warranty claims.
The vehicle Owner comes to the dealer
Dealer determines if an automotive part defect is under warranty
If valid, the dealer files a warranty claim
Warranty assessors may review claims for accuracy
The claim is either approved or rejected
If approved, the claim is processed through the finance and the dealer is reimbursed
Manufacturers can configure default rate types like electrical, paint, etc., and set a default rate for this type of work that will apply to all dealers.
In addition, the manufacturer can override these default rates on a default basis by setting specific rates for a certain dealer.
Labor items can be configured and assigned at an hourly rate. In the case of the hourly rate, the manufacturer can alternatively specify the number of hours.
The dealer can submit warranty claims to the manufacturer for approval through the Warranty Claims Wizard, which is a strong window that guides the dealer through the process of making warranty claims.
A history is kept in full process with the warranty claim, which can be reviewed at any time.
In addition, email notifications can be configured to give the dealer and the manufacturer out of the whole process to warn the other party during certain actions.
Manufacturers can accept or reject claims or send them back to the dealer for additional information. There are several options to allow the manufacturer to meet their needs in the claim handling process.
Payment option on the basis of Dealer code, state, Type of claim, Model, Make, Period, or defined combination of these parameters.
Step-by-step configuration to be carried out for warranty claim management:
Create New Claim: At first, a new claim is generated by entering the general details about the automotive part and the reason for replacing it. Dealer can create claims from different sources: Admin-defined Template, Campaign, Pre-Approval, Re- Re-Considered Request & New Claim form.
Define Warranty Claim Type: Now, after entering the general data, the claim type should be defined according to the automotive parts, as there are various types of claims defined in the software according to requirements. Such as MUSA PDI, Dealer PDI, Post Scale Warranty, Campaign, Goodwill, and Spare Parts.
Define Claim Pricing: In the next step claim value must be defined. Every warranty claim should have a pricing structure to determine how much value to be reimbursed to the dealer when the automotive part is to be repaired within the warranty period promised by the company.
Pre-Define Rejection Code: After completing step third, define the pre-rejection for the claim so that it will be easy to do a better claim analysis.
Documents Uploading: Add an image or PDF of the defective part while creating a claim.
Labour Code: Enter labor code as these are based on different actions done on those claims.
Enter Internal Comment (Optional): The dealer may add any comment regarding the claim that will be visible only to the admin.
Intellinet automotive warranty management software helps companies to efficiently manage claims. It has custom warranty management software packages available for manufacturers and also it can quickly create packages for other manufacturers. Administrators can also develop custom warranty extractions based on a set of basic parameters.
The application effectively manages the pricing and sale of automotive parts to a buyer, the processing of claims, and the renewal of warranty policies. Let us show you examples of warranty management companies, OEMs, and dealers using this software.