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And another insurance issue - how come Cat B's are for sale?

salvage issues
CAT A & B's are meant to be destroyed but a quick search on ebay shows plenty for sale, both damaged and repaired.
We’ve recently looked at how insurers use their motor salvage COP selectively to maximise short-term financial returns, with no apparent concern that the consequences of their actions may put lives at risk or help criminal activities.

Indeed it is surprising that to date, despite acknowledgement from the salvage industry, the Police and Environment Agency, we have had no response on any aspect from the insurance industry itself, despite the fact that copies of the articles have been sent to many individuals. What will it take, I wonder, to prompt a response?

We have heard the question asked – why are you so anti-insurer? The answer is we’re not – we’re just highlighting what we believe to be a serious and very obvious problem. The fact that they were unable to grasp the essence of the articles just goes to show how little they really understand about the problems we’re discussing. What we are asking for is clarity in the COP, adherence to the COP, a level playing field for UK operators plus a much greater awareness and consideration of the wider implications (especially regards vehicle crime).

According to the COP, the most extensively damaged vehicles – category A & B, must be destroyed and a COD issued. And yet we understand that DVLA have data which shows that every year a large number of category A & B vehicles do not get a COD. We also understand that the insurance industry knows this. So what’s the point in the COP? How can this continue? What are the insurers doing about it? To underline this problem, we have been monitoring for the past 12 months the appearance of category B salvage on e-bay. You’d be surprised how common it is. Earlier this month there were 4 category B vehicles, that had been repaired, being offered for sale on E-bay by one UK salvage seller. As I write this, I see another couple of Cat B vehicles advertised on E-bay.

Last year there was a consultation on the VIC scheme. Based on the very poor results, it was widely hoped that it would be scrapped. But the current issues with salvage, the huge number of missing ELVs, and scrap metal thefts are all part of the same problem. These clearly suggests that vehicle and metal crime is out of control – clearly aided and abetted by poor Government understanding of the problems amd lack of enforcement. Under these circumstances, it’s entirely possible that VIC will survive and even be strengthened. In fact, it’s time that the Police and Home Office called in the insurers and told them to get their ‘house in order’.
In principle, the salvage COP is admirable. In practice, it’s not working properly. We are calling on all sides of the debate to work together to resolve these problems, as a matter of urgency.

If you have any comments, please email us.

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