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Keep a close eye on the Salvage Code of Practice

Salvage CoP
We have to be on our toes when it comes to the CoP to ensure that decision makers see common sense.
If you read last issue’s article regarding the insurance industry’s code of practice (CoP), then we hope you are concerned enough to know that decisions being made will seriously effect the auto recycler.

Recently, the MVDA received a reply from the Department for Transport from questions they had raised and it needs pointing out that they are on the ball with this one. Afterall, it has so many implications for the industry.

On the abolition of VIC the government remains on track for October, with the intention to operate a transitional process during most of October although DfT were not ready at the time to make any official announcement. They also expect that from this time, the re-registration of cat A and B vehicles will not be possible.

The Association of British Insurers (ABI) have asked Government to make the CoP legally binding rather than simply a code of practice, but there is no decision from government, one way or the other on this yet.

If legislation was to be the way forward, then consultation would be the next step and MVDA would be on the list along with other interested parties, not necessarily with the same interests as ourselves. Keep reading to see what we mean.

The Head of the National Association of Bodyshops (NAB), Frank Harvey recently said, “The proposed new Code of Practice for the Disposal of Motor Salvage, although a significant improvement on the current code, has clearly been drafted to protect insurers.”

The National Association of Bodyshops (NAB) and the National Franchised Dealers Association (NFDA) met with the DfT to outline their concerns with the proposed new Code of Practice which they feel protects insurers, while exposing consumers and the motoring public to risk from unregulated sale and unregulated repair of written off vehicles.

Harvey said, “At no point in the new code is there any mention of controlling the sale or repair of written off vehicles. Badly damaged cars, deemed uneconomical to repair by insurers, can therefore be purchased and supposedly ‘repaired’ by anyone, irrespective of skill, ability or equipment levels. They can then be sold on to unsuspecting consumers, putting the drivers of these vehicles and other road users at risk.”

Sue Robinson, Director of the NFDA, stated “the NFDA fear that these vehicles, once written off only to be repaired, could put the public at risk. Consumers often want to buy the ‘newest cars’ at the most economical prices but they may not comprehend the risk. Whilst previously written off vehicles can look like a bargain, ‘buyer beware’. Such vehicles can end up costing owners thousands of pounds to correct unsafe repairs.”

None of us want to see unsafe vehicles going back on the roads, but we don’t want to see rulings that prevent safe vehicles going back on the roads, With the news about air bags and other safety related items in the last issue, we could find ourselves in a situation where we cannot sell our vehicles and we can’t sell many of the high value parts - what’s left to our businesses!

Our saving grace is that we do the Motor Vehicle Dismantlers’ Association figthing our corner. We’ve harped on plenty about membership in the past and it really is in our interests to have a strong association for two reasons. Firstly, the more members, the more representative of the industry it is and therefore has more clout, and secondly, they have more money to keep on top of all these issues that could so easily destroy our businesses - and all it costs is £10 a week. If you’re not already a member, click here to find out more.

August 2015

Latest stories

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Code of practice flawed, the opinion of the BVSF
One has to be concerned when the insurer’s new Code of Practice (CoP) that received its “soft launch” a week or so back isn’t supported by either the Motor Vehicle Dismantlers’ Association or the British Vehicle Salvage Federation, two of the main owners of the pre-existing code.