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Clarification on the Salvage Code and VIC

VIC's deadline confirmed and the code of conduct to remain voluntary.
Last month, the MVDA received a letter from the Department of Transport which updated the association as to the government’s current position on the abolition of the vehicle identity check (VIC) and the salvage code.

The letter stated, ‘On the abolition of VIC, the new Government has confirmed it will proceed with abolition in October. That is only subject to the completion of the legal instrument to do that and that work is running on time. The intention is to fully abolish VICs with effect from 26th October and to start a transitional regime where only some of the relevant vehicles will be checked on 1st October. As part of the changes we will prevent the registration of vehicles identified as un-repairable salvage (categories A and B).’

So that couldn’t be clearer, VIC is going and there will be no registration of As and Bs. Where it stands with these categories and the export markets we are not sure but in our opinion they really need to be stopped from leaving the country as whole or knocked down vehicles.

The DoT expressed the view that they would like us to use the abolition of VIC to publicise some clear messages about repaired category C vehicles for the motoring public and potential purchasers, and they would welcome the MVDA’s involvement in this. MVDA has agreed to help.

When it comes to the proposed new salvage code, the Government do not intend to proceed with any consultation. What they are saying here is that they wish avoid additional regulation and if possible would prefer an industry based solution. Here at atfPro we welcome this as government intervention usually only serves to complicate and add expense.

The letter went on to state, ‘The current salvage code has not been statutory guidance, although its processes support a statutory requirement to notify DVLA, and I hope it will be possible to have an effective, revised code operating in the same way. In principle, my Department is prepared to endorse the proposed new code, in a similar way to how it endorsed the existing code. The Department would also progress consequential amendments to the vehicle registration and licensing regulations related to an altered salvage code. I am also happy for the Department to participate in the governance of any new code, if industry wants it to.’

Overall, as an industry we do still have issues with convincing insurers of the safety of certain used parts but this is very much up to us to demonstrate and prove. As an example of this, a couple of years back, MVDA commissioned an independent study looking at the safety implications of used airbags. Currently Thatcham are doing further work on airbags. As vehicles become more advanced, the safety angle could see many parts prevented from re-use unless we put up justifiable argument to prevent this. If you agree with us that this is an important point, then we would urge you to join the MVDA so that they have the funds to fight these issues on our behalf to ensure we have viable businesses in the future Visit the MVDA website here.

September 2015

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