Cash settlement – insurers making a deal with the owner – we’ll give you cash and you take the vehicle away.

This brings the problem of repairing an unroadworthy vehicle as cheaply as possible and keeping the extra cash.

It should be illegal and brings back some of the problems that have already been addressed by the WOVR.

Heavy vehicles are an integral part of our economy.

With many carrying 90 tonnes or more, it is vital that all components are inspected and checked after an accident and the necessary repairs performed.

In cases where inspection of critical items have not been carried out, the results can be catastrophic.

Repairing trucks through cost savings and not safety

  • Owners and ‘backyard’ repairers are purchasing written off vehicles from auctions or through cash settlement arrangements and putting them back on our roads.
  • They do not apply the knowledge or expertise of a licenced heavy vehicle repairer, or look for damage to critical components.
  • These same owners and ‘backyarders’ will overlook safety items to minimise repair costs.

Note:

Hundreds of heavy vehicles are coming back on our roads and being re-insured with no knowledge of previous accident and / or mechanical damage, the source if parts, or who carried out the repairs. NO RECORDS ARE AVAILABLE.

To make a further point with the many hundreds of Heavy vehicles written off how is is that there is no appreciable number of second hand usable parts available.

The industry needs good second hand parts to help keep repair costs down.

Cash settlements

The insurer gets to insure a previously damaged heavy vehicle, sight unseen.

A claim could easily be lodged at a later date and prior damage fixed and paid for by an insurer.

Did prior damage contribute to an accident?

In the mean time, the roads are fill of Heavy vehicles with faulty mechanical damage presenting a very real danger to the public & other drivers

The Fix:

  1. Record damaged heavy vehicles in a register (written off or not)
  2. De-register
  3. Defect
  4. Repairs by licenced / qualified heavy vehicle repairer
  5. A signed letter of compliance to be completed

Following the MVIRI Code of Conduct

  • All licensed repairers and members of the Australian Heavy Vehicle Repairers Association are signatories to the Repairers Code of Conduct and adhere to its guidelines.
  • The majority of insurance companies are signatories to the Repairers Code of Conduct and adhere to its guidelines.
  • If a total loss heavy vehicle is purchased at auction by a backyard repairer there are no restrictions to follow the Code of Conduct.

Major safety concerns require major change…

  • Today’s vehicles carry more technology than ever before.
  • Computer downloading of engine management, composite materials used in construction and advancements in safety systems all require  specialist training techniques.
  • Heavy vehicle smash repair establishments invest tens of millions of dollars in equipment in order to correctly and safely reinstate vehicles to pre-accident condition

Proposal

  • All heavy vehicle repairs are to be carried out to the standards outlined in the Motor Vehicle Insurance and Repair Industry Code of Conduct.
  • All heavy vehicles requiring repairs must have a Certificate of Compliance by a licensed heavy vehicle repairer (based upon the same requirements under the NSW written-off light vehicle laws).
  • Any heavy vehicle to be cash settled requires a certificate of compliance provided by a licensed heavy vehicle repairer on completion of repairs.

Benefits

  • Save lives and reduce injury trauma
  • Protect the public from misleading and deceptive conduct by a seller of a written off or wrecked heavy vehicle, as information will be available via a NEVDIS vehicle history check.
  • Restrict the criminal element from dealing in wrecked heavy vehicles due to the vehicle being defected requiring the owner to provide a certificate of compliance from an approved provider.
  • Avoid fraudulent claims against Insurers that have already paid out on claims to owners that have not repaired the vehicle from a previous damage assessment.
  • Limit and reduce staged accidents which add costs to risk assessments and investigations by Insurers which are passed onto us
  • Reduce pressures on insurance premiums.
  • Increase employment opportunities
  • Increase the sale of new and second hand parts

REFURBISHMENT AND MODIFICATION EXPERTS

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