PRESS RELEASE
BUILDING A DATABASE FOR COMPULSORY VEHICLE INSURANCE IN VIETNAM
Hanoi - The Vietnam Insurance Association (VIA) and FPT Information System (FPT IS) signed the contract for "Building a database for compulsory vehicle insurance in Vietnam" on January 5, 2012 at the Melia Hotel in Hanoi. The VND32 billion project to deploy a BI-GIS (Business Intelligence - Geographic Information System) aims to research and implement a synchronized system to manage and control compulsory vehicle insurance nationwide.
Under the five year contract, FPT IS will provide the VIA with a license for the SAP Business Object, install software, provide server hosting and system software, establish a datacenter, and lease the line for the database, including one year to construct the system and four years of data hosting and maintenance services.
The priority to build a centralized database to manage compulsory vehicle insurance under State administration is essential for the general development of the insurance sector. With a common database, insurance companies will be able to create their own databases compatible with their systems that can connect to the shared database to improve management efficiency and facilitate decision making to ensure more precise compensation for damages caused by traffic accidents.
The central database will benefit a variety of users including insurance companies, the VIA, Department for Managing and Controlling Insurance and other related agencies such as Public Security and the Department of Registration as well as hospitals. The system will comprise all essential modules such as compulsory and voluntary insurance data warehouses, data input, reporting, a digital platform map and system administration.
There are more than 32 million motor-vehicles and motorbikes in Vietnam, 7.5 million of which were purchased with motor insurance, and 1.5 million automobiles, 1.4 million with insurance. It is forecasted there will be 35 million motor-vehicles and motorbikes by 2015 and that figure will increase to 36 million by 2020, creating increased risks to the community's health, lives and assets. In the meantime, identifying the vehicles with insurance and the compensation levels is difficult because there is no unified database for compulsory vehicle insurance, and it is far beyond the processing capability of manual data collection to create such a database.
Individual insurance companies are also required to have their own vehicle insurance databases by 2012, which will vary greatly, making connections between them almost impossible. Therefore, it is necessary to implement advanced, standardized IT solutions to meet their current business demands and promote future development.
Mr. Phung Dac Loc- VIA General Secretary, head of the Insurance Fund and project director says: "There are an ever- increasing number of vehicles and vehicle owners in Vietnam, which presents numerous difficulties for insurance companies in collecting and updating information because of gaps in the profession and IT infrastructure. Vehicle insurance, especially for motorbikes, is sold mostly in retail shops that seldom collect enough information on the vehicle and/or its owner. This happens all over the country and it has become a headache for us in the insurance sector to unify and manage all the information quickly and accurately. Applying information technology and building a modern, centralized database is the key to resolving this problem".
Mr. Loc said he hopes the database will be able to connect with those of the traffic police, registration departments and hospitals to reduce the wait for compensation and protect the rights of traffic victims. The database will store information on the cause and time of the accident as well as the victim's age, the name of vehicle owner, etc, and calculate the damages to facilitate the processing of vehicle insurance claims.
On behalf of the project contractor, Mr. Duong Dung Trieu- CEO of FPT IS said: "This project has confirmed FPT IS's direction and capability in implementing ERP applications for the public sector, with the VIA as one of the pioneers. Our experts will research the most appropriate solutions to build a reliable and efficient system able to process the large amount of data, which will triple or quadruple in the next five years as the number of motorbikes and automobiles is expected to rise sharply".
The "Database for Compulsory Vehicle Insurance " project:
1. Legal context:
- The Department for Managing and Controlling Insurance was assigned by the Ministry of Finance to control and monitor various insurance sectors including motor vehicle insurance.
- Item No.11, Article No.20 of Government Decree No. 103/2008/NĐ-CP and Point 14.13, Item 14, Article II of Ministry of Finance Circular No.126/2009/TT-BTC state that it is compulsory for insurance companies to "build and operate an appropriate IT system to collect and update sufficient accurate statistics for compulsory motor vehicle insurance and ensure the information is linked to a centralized database ...".
- The requirements for the motor vehicle insurance database are prescribed in Article 5 of Government Decree No. 103/2008/NĐ-CP as follows:
- The database will be built to enumerate, update and systemize all information related to vehicles and their owners who use the roads and purchase compulsory motor vehicle insurance. It will also facilitate State administration, insurance company business and vehicle owner monitoring.
- The Ministry of Finance will supervise and cooperate with related agencies to provide guidelines for the Vietnam Insurance Association so insurance companies will be able to build appropriate motor vehicle insurance databases.
2. FPT IS capability in BI-GIS (Geographic Information System - Business Intelligence) (www.fis.com.vn)
BI-GIS combines two of the most important information analysis and management systems for enterprises and organizations, the GIS - Geographic Information System and BI - Business Intelligence. BIS exports relevant information from a huge collection of data to enable timely responses and better decision making. GIS allows the flexible attachment of specific data onto a digital map frame to create geological, terrain and other types of maps. This combination enables enterprises and organizations to optimize their investment and can be applied across the board in key economic sectors such as retail sales, healthcare, insurance, telecommunications, oil and gas and public services.
FPT Information System (FPT IS) is the authorized distributor in Vietnam for the world's leading GIS and BI providers. The company's capability and experience in implementing large scale IT projects for both domestic and foreign clients are its foundation for consulting on and implementing BI-GIS projects to generate accurate information improve competitiveness.
BI-GIS projects implemented by FPT IS include setting up the systems for managing land and fixed assets at industrial and special economic zones in Dong Da district, Hanoi and Ben Tre and Khanh Hoa provinces; installing a GIS/GPS system to create digital maps for the Ministry of Public Security to manage and locate criminals; developing digital mapping to manage branches and equipment for the Bank of Investment and Development of Vietnam (BIDV); and creating a road network information management system for the Ministry of Transportation.
Press contact:
HCM City:
Ms. Nguyen Thi Huyen Phuong
FPT Corporate Communication Department - HCM City
Email: phuongnth@fpt.com.vn
Tel: +84 8 73007300 - ext 87879
Mobile: 093 603 7879
Hanoi:
Ms. Mai Lan Anh
FPT Corporate Communication Department - Hanoi
Email: anhmtl@fpt.com.vn
Tel: +84 4 73007300 - ext 41922
Mobile: 0912 081 922
