Module 3, Lesson 1

Preamble

Approximate time to complete this lesson: 20 minutes.

Lesson 1 Video

To begin Module 3, Lesson 1, watch this video (5 minutes, 57 seconds).

 

Review of Lesson 1

In 2011 the ICBC / B-CAR liaison (now referred to as the recycled parts liaison committee) amended the standards to better reflect the changes within the industry and to improve communication between repair facilities and recycle parts suppliers. A current copy of the standards can be found at:

http://partners.icbc.com/material-damage/default.asp

Standards can be subjected to amendment. However, amendments to the standards require the consent of the recycled parts liaison committee.

The standards were developed to help estimators, technicians and suppliers search for recycled parts, respond to searches, filling orders, and delivery of recycled parts to repair facilitates. The use of recycled parts in the repair process can not only save the customer time and money by helping reduce insurance premiums through claims cost reduction but they can also help the repair facility meet their key performance indicators.

The standards do not answer every question or address every situation that may arise but understanding them will help you to communicate clearly and effectively with your customer in order to resolve disputes.

Learning and applying these standards will help ensure fair and rapid handling of all repair claims.

Expectations of Estimators
Before an estimator searches for recycled parts through the recycled parts locator or RPL the estimator will determine the customer’s expectations and policy entitlements prior to completing the repair estimate.

The estimator must confirm whether one of the following endorsements is in effect:

  • Replacement Cost Endorsement (APV286A), or
  • New Vehicle Replacement Plus Policy

With valid Replacement Cost coverage, ICBC will authorize the repair to use new, original manufacture’s parts (OEM) in such cases when the vehicle can be repaired and parts are needed. If such parts are not available, the policy holder will get new parts of like, kind and quality as those recommended by the manufacturer.

New vehicle replacement coverage applies to vehicles that are substantially damaged but not beyond repair. The policy triggers a total loss settlement where substantial damage may otherwise have been repaired.

Parts Availability
The estimator will explain to the customer:

  • The parts that will be used to repair the vehicle, and
  • ICBC’s commitment to return their vehicle to pre-accident condition

The estimator must then research the availability of parts from the suppliers listed in the Recycled Parts Locator RPL.

All repair facility generated RPL requests are left open for twenty minutes; all ICBC generated requests are left open from the time of first entry.

*A recycler may respond to a request even after the twenty-minute time frame has elapsed.

The defined part request must include the vehicle:

  • Year
  • Make
  • Model
  • Body style
  • Vehicle identification number (VIN)
  • Physical description of the vehicle

Additional information may also be requested from the recycled parts supplier including:

  • Engine size
  • Colour or trim identification codes
  • Other options or series

It is the responsibility of the estimator to determine whether a recycled part will result in a more economical repair than with a new part. If no, then the estimator may:

  • Try to negotiate the price with the supplier
  • Find another supplier
  • Consider using an alternative aftermarket part

Continue To Module 3, Lesson 2