This Code of Practice has been produced by and is supported by the Association of British Insurers (ABI), Lloyd's Market Association (LMA), British Vehicle Salvage Federation (BVSF), British Vehicle Rental and Leasing Association (BVRLA), Motor Vehicles Dismantles Association (MVDA), the Association of Chief Police Officers (ACPO) /Association of Chief Police Officers Scotland (ACPOS),Trading Standards Institute, the Home Office (HO), the Department for Transport (DfT),the Driver and Vehicle Licensing Agency (DVLA), Driver and Vehicle Licensing Northern Ireland (DVLNI)1 and the Vehicle Operator and Services Agency (VOSA). This Code gives advice on the steps to be taken in the treatment of vehicle salvage and recovered stolen vehicles. The categorisation and notification of salvage as set out in this Code will make it difficult for criminals to ring vehicles (illegally changing the identification of a stolen vehicle) or return dangerously repaired vehicles to the road. The purpose of the Code is to detect and deter insurance fraud and the above-mentioned criminal activities and to make vehicle histories much more transparent. The Code seeks to encourage best practice. However, adoption by supporters and their members of any terms, standards, guidance, recommendations or similar statement contained in this document is voluntary and entirely at the discretion of each individual member.

CATEGORISATION OF VEHICLE SALVAGE 

Four categories of vehicle salvage have been defined. Details are given of the steps to be taken in advising DVLA and MIAFTRoneach category, together with the consequential effects on action taken by the police, VOSA, vehicle data agencies and other interested organisations. The inspecting insurance staff or independent engineer must decide to which of the four categories a particular item of salvage belongs, using current ETS (Engineer Technical Sub-committee) Guidelines, Other than to correct inputting errors, data should not be removed from MIAFTR. Recategorisation may only be effected in exceptional circumstances (see Changes in salvage categories below).

DISPUTES      

1.   In the event of a dispute between the insurer and the salvage agent regarding categorisation, the matter should be referred to a senior engineer nominated by the insurer.

2.    Where two MIAFTR entries have been made by different insurers in respect of the same vehicle/incident, the entry made by the insurer that settles the claim should take precedence. However, where duplicated entries indicate different salvage categories, the insurer awarding a more severe salvage category is entitled to seek substantiating evidence (from other interested parties as appropriate) before removing their MIAFTR entry.

DVLA NOTIFICATION AND MIAFTR      

A MIAFTR entry must be completed in respect of all total loss vehicles, indicating salvage categories (A, B, C or D as appropriate) as soon as reasonably practicable. Completing a MIAFTR entry meets the regulatory requirements for insurers to notify DVLA under the Road Vehicles (Registration and Licensing) Regulations 2002. It is essential that notifications to MIAFTR are made properly and that amended/updated information is fed through as soon as is reasonably practicable.

DEFINITIONS      

Throughout this Code all references to 'Salvage Disposer' shall be deemed to include members of any of the supporting organisations that dispose of salvage, including insurers and their agents, self-insurers and their agents and associated companies. VIC- a Vehicle Identity Check. Since April 2003, all cars and certain light vans categorised as A, B or C require a VIC before a V5C registration certificate is re-issued by DVLA. The check is carried out by the Vehicle Operator and Services Agency (VOSA).        

'      Note that terminology in this Code may differ for Northern Ireland. 7      Or'setf insured'throughout this Code as appropriate.