Vehicle Warranty - Claim Problems

90suzuki01
ISSUED: 02/23/90
DIVISION: AUTOMOTIVE
CATEGORY: WARRANTY
NUMBER : SW-07 FEBRUARY 1990
PAGE: 1 OF 2
SUBJECT: FREQUENT CLAIM PROBLEMS

Observations during claim validation/processing indicate the following problems during claim preparation or submission.

VIN:
Errors in the VIN is the major reason for claim rejection - check the VIN carefully during R.O. and claim preparation.

FAILED PART NO:
There is a major problem with labor only claims. All claims require a failed part number for quality control reasons. On many labor only claims the failed part number is either omitted or erroneous. The failed part number must be shown as in the parts catalog including color codes. When you select the failed part number you should not use nuts or bolts but rather the part fastened by the nuts or bolts. For example if the muffler was loose you should use the muffler as the failed part and not the mounting bolts or nuts, even though the bolts or nuts were actually loose. This is necessary since the same nut or bolt may appear in a different part of the vehicle and it is not possible to recognize in the computer where the failure actually occurred. For labor only claim the parts quantity for the failed part is always zero (0). For claims with parts the applicable quantity must be shown.

LABOR OPERATION AND TIME:
In some instances a labor operation is shown with a different time than indicated in the warranty flat rate manual for that labor operation. The computer will only credit the time in the flat rate manual. Therefore you must use labor operation __9999 "other" with the applicable section code if the repair scope and time does not match any labor operation listed in the Flat Rate Manual.

CONDITION, CAUSE, REPAIR:
In quite a number of cases these fields are left blank or the explanations given do not correlate with each other, the failed part or parts used. since it is impossible for us in many cases to determine which information is the correct one, we have no choice but to return (deny) the claim.

CLAIM SUBMISSIONS:
Only the original (top white copy) of the claim form should be submitted. The yellow copy must only be submitted together with any ASMC parts submission request. The pink copy is your dealerships file copy.

ATTACHMENTS:
A large number of claims have the repair order copies attached, this is not necessary and wasteful. The only attachments required are for:
Warranty Clairm: Copies of sublet bills including towing bills, etc.
Transportation Damage Claims: Copy of the delivery receipt where the driver acknowledges the damage; copy of repair order; sublet bills; etc. Copy of carrier notification letter in case of hidden damage or delayed inspection.
Spare Parts and Accessory Warranty Claims: Copy of the counter ticket or previous repair order.
Claims with special instructions: As in some cases with authorized claims, special instructions are given concerning attachments.

CLAIM INQUIRIES Frequently we receive phone calls concerning claims, and their status. This method is disruptive and expensive. The correct way to inquire about claims is to follow the established procedures outlined in the service procedures manual, Section 06, Part 05, Page 1.

DUPLICATE CLAIMS We also observed that duplicate claims are submitted before the original claim(s) has reached final status: paid or denied. Resubmission of denied claims is outlined in the service procedures, Section 06, Part 04, Page 1. If a paid claim is incorrectly paid, follow the procedures for adjustment, Section 06, Part 06, Page 1.

Please review your own claim completion and submission procedures and if any of the above problem exist take the necessary corrective action.
Issued: 02/23/90