Motor Policy Cancellation & Refund Handling

1. Purpose

To provide clear and consistent steps for handling motor policy cancellations and processing refunds, involving coordination between the Operations, Finance teams, and Insurance Companies (ICs).

2. Scope

This SOP applies to all customer and reseller-submitted motor policy cancellation requests, including scenarios involving internal and insurer-handled refunds, as well as refund disputes.

3. Process Steps

Step 1: Request Submission

• A cancellation request is submitted through the portal.

• The request can come from either a customer or a reseller.
  
  

Step 2: IBAN Validation – Finance Team

• The Finance team validates the IBAN details provided in the request.

• This applies to both customers and resellers.

• Once validated, the Finance team notifies the Operations team to proceed with the next steps.

Step 3: Document Review – Operations Team

• The Operations team reviews the supporting documents attached to the cancellation request.

• If the documents are valid, the request is forwarded to the relevant insurance company for policy cancellation.
  
  

Step 4: Policy Cancellation Confirmation

• The insurance company issues a Credit Note (CN) or Debit Note (DN) once the policy is canceled.

• The Operations team verifies the documents and forwards the case to the Finance team for refund processing.

4. Refund Processing

Scenario 1: Internal Refunds (Handled by Shory)

• Applicable when the policy’s effective date is before the 15th of February, unless the IC handles refunds regardless of the effective date.

• The Finance team processes the refund within 3 to 5 working days.

• Refund advice is uploaded to the system on the same day or the following day after refund completion.

• The case is marked as completed.
  
  

Scenario 2: Refunds Handled by the Insurance Company

If the IC does not provide individual refund advice:

• The Finance team keeps the case open.

• The Operations team follows up with the insurance company until payment is confirmed.

• Once confirmed, the Operations team requests the DB team to bulk mark the case as "settled."
  
  

If the IC provides individual refund advice:

• The Operations team uploads the refund advice to the admin portal.

• The refund is then marked as completed.

5. Dispute Handling

If a customer disputes the refund (e.g., due to an incorrect amount or missing payment):

• The Operations team raises the case with the relevant insurance company.

• Remittance advice is requested from the IC for the specific refund.

• Once received:

  • The remittance advice is shared with the customer.

  • It is uploaded to the admin portal.

  • The case is marked as completed.

6. Notes & Exceptions

• Certain insurance companies handle refunds for all policies regardless of the effective date.

• Always ensure that all updates, supporting documents, and remittance confirmations are uploaded to the admin portal for proper tracking and audit readiness.