ELECTRONIC Commerce Technology Sdn Bhd, the manager of consumer benefits programme RealRewards, has signed an agreement with American International Assurance Co Ltd (AIA) and American Home Assurance Company Malaysia (AHA) to provide a RM12bil group insurance protection plan for its VIP and VVIP card members.
The on-the-road group personal accident policy, believed to be the single largest group insurance policy in the country, will cover 25% of the RealRewards customer base and provide its VIP and VVIP members up to RM28,000 each in the event of death or disablement related to road accidents.
VVIP members are those who have accumulated 7,000 points and above a year while VIP members are those who have earned 3,000 points.
At the signing ceremony to appoint AIA and AHA as the underwriters of the policy in Kuala Lumpur yesterday, Electronic Commerce chairman Datuk Shamsuddin Hayroni said the company decided on giving its most active members complimentary on-the-road insurance coverage because of the high incidences of serious road accidents in the country, especially during festive season.
He said Road Transport Department's statistics showed that in 2001, there were 9.45 million licensed drivers in Malaysia and over 265,000 road accidents leading to 5,230 deaths and 6,942 serious injuries.
Statistics from the Life Insurance Association of Malaysia indicated that in 2001, the number of life insurance policies issued was only 1.36 million. These figures indicate that more that eight million Malaysians may not have insurance protection in the event of a road accident, he said.
Shamsuddin said the company expected the number of household members to increase to 2.9 million by year-end. The number of Classic card members crossing the 3,000 and 7,000 points threshold was also expected to achieve double-digit growth next year.
Our membership rate has grown by 39% to 2.5 million households to date from 1.8 million last year. The number of transactions recorded for all our merchants for the first six months of the year was 20.4 million - an increase of 14% over the same period in 2002, he said, adding that there were now over 4 million cards in circulation.
AIG Marketing Corp Ltd (Hong Kong) president and chief executive officer Bryan Smith said the AIA-AHA-RealRewards smart partnership was one of the pioneer alliances between insurance companies and an independent customer loyalty card organisation.
By doing this, we intend to break away the conventional marketing methods employed by the industry as we seek more innovative ways to communicate directly with our target market, he added.
AIA and AHA are wholly-owned subsidiaries of American International Group Inc.