Module 3, Lesson 2 Copy

Preamble

Approximate time to complete this lesson: 20 minutes.

Lesson 2 Video

To begin Lesson 2, watch this video (6 minutes, 15 seconds).

Review of Lesson 2

Mechanical Parts

ICBC’s policy on mechanical parts utilization is:

Replacement of mechanical parts through consultation with the customer to utilize recycled, aftermarket, rebuilt or new OEM

Ordering the Parts

Repair facilities must order all parts by ICBC claim number and attach a copy of the original invoice, showing the ICBC claim number, to every repair account submitted for payment.

Complete Order Response

What is a complete order response?

A complete order response is sent electronically through the RPL when a recycled parts supplier confirms they are able to provide all the parts requested for a claim versus partial or incomplete orders.

Successful parts suppliers will be awarded a complete order on the basis of order of submission and / or price quoted

Before ordering parts the repair facility must:

Verify with ICBC that the vehicle repairs can proceed, and
Order all parts by ICBC claim number

Repair facilities purchasing from a recycled parts supplier that is not on the RPL must assume all warranty for the part.

The repair facility must clearly define the requirements of all welded panel cuts only after it has been verified that the vehicle can be repaired.

Responding to Parts Requests

Recycled parts must be OEM from the same year as, or newer as the insured’s vehicle, unless the inter-changeability of the part is discussed and agreed to by the ICBC estimator.

New aftermarket parts must not be provided as recycled parts. A recycler supplied aftermarket part must be identified as new and the recycler and estimator must agree to its use at the time of the initial parts request.

All recycled parts quotes must be at retail prices and include shipping within the recycled parts supplier’s delivery area.

All recycled parts invoices must be computer generated and include the ICBC claim number and the donor vehicle’s vehicle identification number.

The quality of parts must be accurately represented by the recycled parts supplier and reference the Automotive Recyclers Association Parts Grade and Damage Code.

All recycled parts ordered with an ICBC claim number are held by the recycled parts supplier for a period of seven consecutive business days.

The recycled parts supplier will provide an agreed upon allowance for labour to the repair facility based on current practices and costs for the repair of pre-existing damage to supplied parts.
Repair facility requests for labour compensation on damaged parts supplied must be reasonable and agreed to by the recycler before the parts are repaired or installed.

Delivery

All recycled parts must be appropriately cleaned prior to delivery.

If the delivery is within the recycler’s delivery area, then the delivery time for the initial recycled part is no greater than 48 hours.

If the Delivery is outside the recycler’s area, then the delivery time for the initial recycled part
No greater than 72 hours.

Recycled parts suppliers will make every effort to reduce this, whenever possible. Any delivery schedule beyond this must be discussed and agreed upon between the recycler parts supplier and the repair facility.

Freight Charges

Freight Charges must be:

Listed by the recycled part supplier on their response to an RPL request
Prepaid by the recycled part supplier
Billed to the repair facility

Freight Charges may vary based on the following distance chart.

When the parts are delivered within the recyclers area, or within 60km of a recycler’s facility, then freight charges are included in the quoted price.

When the parts are delivered outside the recycler’s delivery area, and beyond 60km of recycler’s facility, then freight charges are quoted separately.

No mark-up by either the recycler or the repair shop allowed.

Crating Fee

Eligibility for a crating fee for recycled parts is based on the size and retail dollar amount.

If the recycled part is similar size or larger than a fender, then it is eligible for a crating fee.

If the recycled part is smaller than a fender, or if the order is less than $150.00 retail value, then it is not eligible for a crating fee.

A $25.00 crating fee is allowed on any order requiring substantial shipping protection. There is only one crating fee allowed per claim per part supplier. The fee is billed on the freight invoice and charged out at a net amount. The invoice must not include a “trade discount”. Crating fees must be listed on the parts invoice and charged out as a net amount.