Docstoc

branding

Document Sample
branding Powered By Docstoc
					   Ontario
Mandatory Vehicle
Branding Program
      Industry Stakeholders
     In the Mandatory Branding Program

Government/Police

New & Used Car Dealers

Recycling/Wrecking

Collision Repair
      Industry Stakeholders

Vehicle Rebuilder
Fleet/Leasing/Rental companies
Insurance Industry(appraisers,
 adjusters,brokers,companies)
Autobody supply or parts suppliers
           AGENDA
Who will brand?
Program objectives and highlights
What are the brands?
When do we brand?
How to assign a proper brand
Reporting brands
Definitions
Penalties
       Program Objectives
Enhance road safety.
Protect consumers in the vehicle
 market place.
Make stolen vehicles difficult to be re-
 licensed.
Make stolen parts more difficult to be
 re-used.
Promote insurance rate stability.
    WHAT IS BRANDING ?
Vehicle branding in Ontario is the process
 whereby a vehicle that is “total loss”,
 because of damage, must have a designation
 affixed to the vehicle record that identifies
 the vehicle accordingly, thus allowing a
 potential buyer to recognize that the vehicle
 may have had catastrophic damage.
  Program Delivery & Scope


Important part of the Ministry’s
 Road User Safety Agenda.
      Status of the Mandatory
        Branding Program
Modifications to MTO Vehicle Registration
 System (VRS) have been completed.
Brands now appear on registration files
 and permits, as well as vehicle history
 records and the Used Vehicle Information
 Packages.
Automated inter-provincial exchange of
 vehicle brand information is being
 enhanced at this time.
Status of the Mandatory
   Branding Program


   Began March 31, 2003
       Program Elements
Program is comprised of two
components:

 1) vehicle registration/permit
    “branding”
 2) rebuilt vehicle inspection
    standards
                  Triggers

 Vehicle must be defined as “total loss” as a
  result of:
      Collision
      Impact
      Fire
      Flood
      Theft
      What is a Total Loss
 A vehicle damaged by collision,
  impact, fire or flood or has been
  stolen and dismantled such that the
  cost of repairs exceed the difference
  between the fair market value of the
  vehicle immediately before the
  incident and its salvage value.
           TOTAL LOSS

For the determination of “total loss”, the
 estimated cost of repairing the vehicle
 must be calculated using reasonable
 commercial rates for parts, supplies and
 labour.
        SALVAGE VALUE


“Salvage value” means the value of a
 damaged, or stolen and dismantled
 vehicle that is legitimately recoverable
 through commercial means of disposal.
   BRAND REQUIREMENT

ALL vehicle permits now have a brand
 identifier located on the vehicle portion of
 the registration permit.
      Vehicle Registration
       Permit Branding
The following status brands can be found on
the Ministry of Transportation’s vehicle
registration system:

        NONE
        SALVAGE (can be changed)
        IRREPARABLE (parts only)
        REBUILT
        STOLEN (system flag only)
             NONE BRAND

 ALL vehicles, unless they are branded
  “salvage”, “irreparable” or “rebuilt” will have
  a brand “NONE” that is visible on the
  registration permit.

 A brand of “NONE” will also be assigned even
 if the vehicle is damaged and is defined as
 a“total loss” but does not have damage that
 requires the replacement of structural
 assemblies.
            None Brand
 A vehicle that has sustained
     considerable damage but has not
     been considered a “total loss” and
     has been subsequently repaired
     will also have a brand of “NONE”
     affixed.
A vehicle that has never been
involved in an incident.
     DETERMINATION OF
         DAMAGE
Structural Assembly replacement,
 rather than repair, is an important
 criteria when determining a brand.
       DETERMINATION OF
            BRAND
      When one or more of the structural
    assemblies in a vehicle require replacement
    then the vehicle is considered “salvage”
           SALVAGE
Salvage brand can be changed to
“Rebuilt”.




Brand   may also be applied when stolen
vehicles are recovered damaged.
              SALVAGE
Shown     on the Vehicle Registration
Permit.


Vehicle is not damaged as badly as
an irreparable.


Can   be safely repaired for road use.
         SALVAGE BRAND
This brand can only be changed if the
 vehicle successfully passes a structural
 inspection performed at a licensed
 structural inspection station. Vehicle
 brand then becomes “REBUILT”
  This vehicle still must successfully pass a Safety
  Standards inspection at an MTO approved facility
  and then a Drive Clean inspection before being
  licensed.
           Salvage Brand
Any vehicle imported to Ontario from
 any state in the United States or any
 other Canadian jurisdiction having a
 brand of “salvage” from that jurisdiction
 or a brand that is considered
 “equivalent” to that of “salvage”, will be
 branded as “salvage” in Ontario.
            Salvage Brand
Salvage branded vehicles must pass a
 structural inspection completed by a
 licensed structural inspection station in
 order to have the brand changed to
 “Rebuilt”.
     The vehicle will still have an unfit
         designation at this time
           Salvage Brand
Any vehicle that is defined as a “re-
 assembled vehicle” will automatically be
 branded as “salvage”.

No motorcycles can be branded as
 “salvage”
     REBUILT BRAND


A “salvage” branded vehicle that has
 been inspected and certified by a
 licensed Structural Inspection Station.
            Rebuilt Brand
Any vehicle entering Ontario from any
 state in the United States or any other
 Canadian jurisdiction having a brand
 from that jurisdiction of “rebuilt” or a
 brand that is equivalent to rebuilt, will be
 branded “salvage” in Ontario.
    Configuration Of Vehicle

Will determine the specific number of
 major structural assemblies of the occupant
 area that require replacement before a
 vehicle is branded irreparable.
    MAJOR ASSEMBLY
     COMPONENTS

When at least 3 or more of the
structural assemblies in Section 2
require replacement, the vehicle is
considered “irreparable”.
        IRREPARABLE




Requires  replacement of at least 3
structural assemblies in occupant area.
           IRREPARABLE



•   Shown on a Vehicle Permit
•   Cannot be safely repaired.
•   Vehicle is for parts only.
•   Cannot be licensed for road use.
      IRREPARABLE BRAND
On a vehicle, usually implies that the
 occupant compartment has received
 severe damage.
May be applied when a vehicle has been
 involved in flooding, fire, or theft.
Is the only brand applied to motorcycles
          Irreparable Brand
 Vehicles that enter Ontario from any state in
  the United States or any other Canadian
  jurisdiction that are branded “irreparable” in
  that jurisdiction or have a brand that is
  considered equivalent to “irreparable” will
  have the “Irreparable” brand assigned in
  Ontario.
 This brand is permanent.
 Vehicle is to be used for parts only.
           STOLEN FLAG
This is a temporary flag that is applied
 when an enforcement agency advises that
 the vehicle is stolen. The flag is removed
 once the vehicle is recovered.

   It is common that the vehicle status, once
        recovered is changed to “salvage” or
                    “irreparable”
Exceptions branding/inspection
  Trailers
  Vehicle with model year of
   1980 or earlier
  Snowmobiles
  All Terrain Vehicles (ATV)
  Road Building Machines
  Motorcycles (irreparable only)
 RE-ASSEMBLED VEHICLES
A “re-assembled” vehicle means a motor
 vehicle that has been assembled using the
 body of a motor vehicle with a model
 year of 1981 or later and the chassis
 frame assembly of another motor vehicle
 both of which were manufactured
 utilizing a full frame assembly as part of
 the vehicle’s structure.
     Definition of an Insurer
An Insurer is defined as

1)   An insurer as defined in subsection 1(1) of the
     Compulsory Automobile Insurance Act or,

2) A person who owns, leases or holds the plate
   portion of the vehicle permit for 10 or more vehicles,
   the policies of insurance for which do not cover
   damage caused by all perils.
 REPORTING
REQUIREMENTS
     BRAND ASSESSMENT
 The person who inspects the vehicle, makes the
  damage estimate and then makes the
  determination whether the vehicle is “salvage”
  or “irreparable” according to prescribed
  standards is:
 An insurer, or
 An individual who holds a valid and up-to date
  Certificate of Qualification issued by the
  Ontario Ministry of Training, Colleges and
  Universities.
This Certificate must be for the trades of :

       Truck and Coach Technician or
       Auto Body Collision Damage Repairer or
       Automotive Service Technician,

   and is employed by a licensed structural inspection station.

A person holding an Auto Body Technician Certificate of
Qualification is not able to make assessments for the purposes
of this program. (310Q)
The insurer and all others that determine a brand, shall provide
the insured or other person on whose behalf the branding
inspection is carried out with a copy of the record used and
created in carrying out the inspection, and the insured or
other person shall retain those records for two years.

Every motor vehicle inspection station that provides this
determination of brand must retain the documents used
for this inspection for 2 years.

The technician will only inspect within the scope of
his/her Certificate of Qualification for their specific trade.
            REPORTING

Insurance companies, self-insured fleets,
individual owners, third parties, or anyone who
comes into possession of damaged vehicles must
determine whether or not it is a total loss and if
so must determine and report the appropriate
brand.
              REPORTING
Information must be reported to the Registrar by
insurer (a) no later than:
 6 days from becoming the owner of the vehicle
14 days from date of settlement

 Information must be reported to the Registrar by
insurer (b) no later than:
 6 days from date of incident
                  REPORTING

 Individuals or organizations with 9 vehicles or less must
  notify the Registrar within:
 26 days if no brand has been applied and the person;
  does not have insurance
 does have insurance but the damage is not covered by
  the policy;
 does have insurance but a claim is not paid within 25
  days
             REPORTING
A person, other than an insurer, including
 an importer, salvager or auctioneer, who
 buys, sells, wrecks or otherwise deals in
 used motor vehicles, must report vehicle
 brands to the Registrar within 6 days of
 acquiring ownership of the vehicle.
       Insurers Must Include:
 Date of incident, settlement, or date of
  becoming owner of vehicle.
 The classification of the vehicle as irreparable
  or salvage.
 Vehicle identification number of the vehicle.
 Name of the holder of the plate portion of the
  permit at the time of incident.
 Date of notification to the Registrar.
Name    of the insurer.
Registrant Identification Number (RIN)
 of the insurer.
Address of the insurer.
Insurance claim number.
Name of insured.
Telephone,  fax, or e/mail.
Name and address of individual making the
 notification on behalf of the insurer.
Signature of the individual making the
 notification on behalf of the insurer.
Notification from insurer to the Registrar
 shall be in writing
 Non-Insurers Must Include:
Date of incident or of becoming owner
 of the vehicle.
Classification of vehicle as irreparable
 or salvage.
Vehicle identification number of
 vehicle.
Date of notification to the Registrar.
Name, address and telephone # of the
 holder of the vehicle portion of the
 permit at the time of incident.
Drivers license # or registrant
 identification number (RIN)
Name, business address and telephone
 number of person making notification.
Relationship of person making
 notification on behalf of the holder of the
 permit, if applicable.
Signature of the person making the
 notification.
Notification from non-insurers to the
 Registrar shall be in writing.
Notification of Vehicle Brand form
can be submitted to any of the
Driver and Vehicle License Issuing
Offices in Ontario
IRREPARABLE also is a vehicle that is a “total loss” and:

1) Has been immersed in liquid to the bottom of its
dashboard or higher
2) Any major part of its electrical system has been or
appears to have been immersed in liquid.

Major parts are:
a) A fuse panel or breaker panel.
b) A component that monitors, triggers or controls any
   component of the vehicle’s occupant restraint systems.
c) An electronic component that transmits or relays
   power for use in the heating or cooling of the vehicle’s
   occupant compartment.
d) An electronic component that transmits or relays power
   for use in the vehicle’s defogging or defrosting systems.
e) An electronic component that controls the vehicle’s
   primary operating systems.

f) A main wiring harness with unsealed connections that is
   located in the occupant compartment.

g) An electronic module that controls the vehicle’s on board
   self-diagnostic system, excluding communications,
   navigation and entertainment systems.

h) An electronic module that controls the vehicle’s braking
   systems or steering systems
            Surgically Dismantled Vehicle
A vehicle that is a “total loss” and has been stolen and
dismantled such that the retail price for new parts of a like
kind to replace those parts missing or damaged exceeds the
fair labour cost to install or repair those parts and,

a) a settlement of an insurance claim has been paid for the
vehicle as a total loss or

b) The vehicle is owned, leased or the plate portion of its
vehicle permit is held by a person who is an insurer within
the meaning of this regulation
For the purposes of the definitions of “SALVAGE” and
“IRREPARABLE”, a structural assembly, structural firewall
Or bulkhead assembly requires replacement if:

a) it has been damaged by impact and has been torn,
kinked or bent beyond the manufacturer’s repair standards or,
if there are no manufacturer’s repair standards, beyond the
commonly accepted standards of the auto body collision
repair industry or

b) it has been damaged by heat beyond the manufacturer’s
repair standards or, if there are no manufacturer’s repair
standards, beyond the commonly accepted standards of the
auto body collision repair industry.
              PENALTIES
There are a number of penalties in the
event the reporting requirements are not
adhered to. They are as follows:

 A person who fails to notify the
Registrar is guilty of an offence and on
conviction is liable to a fine of not less than
$400.00 and not more than $20,000.00.
A person who notifies the Registrar that
 a vehicle is irreparable when it is salvage,
 or who notifies the Registrar that the
 vehicle is salvage when it is irreparable,
 is guilty of a offence and on conviction is
 liable to a fine of not less than $400.00
 and not more than $20,000.00
A person who fails to notify the holder of
 the vehicle permit or of the vehicle
 portion of the vehicle permit is guilty of
 an offence and on conviction is liable to a
 fine of not less than $400.00 and not more
 than $20,000.00.
A person who fails to return a vehicle
 permit or the vehicle portion of a vehicle
 permit to the Registrar is guilty of an
 offence and on conviction is liable to a
 fine of not less than $200.00 and not more
 than $20,000.00.
No proceeding for an offence under the
 above shall be instituted more than 24
 months after the facts on which the
 proceeding is based are alleged to have
 occurred.
       Driving Prohibited
No person shall drive or tow on a
highway a vehicle classified by the
Registrar as “irreparable” or as “salvage”
or an equivalent brand from another
jurisdiction and no person shall permit
such a vehicle to be driven or drawn on a
highway.
              Exceptions
When the vehicle is being towed for the
 purposes of repairs.(proper towing
 device)
When the vehicle is being driven or
 drawn for the purpose of receiving a
 safety standards certificate.
A person who contravenes the previous
exceptions is guilty of an offence and on
conviction is liable, on a first conviction, to
a fine of not less than $100.00 and not
more than $500.00, and on each
subsequent conviction, to a fine of not less
than $200.00 and not more than $1,000.00.
               APPEALS
If the person holding the vehicle permit
or the vehicle portion of the vehicle permit
disagrees with the decision or action of the
Registrar to register a vehicle as “salvage”
or “irreparable”, the person may make
written submissions to the Registrar about
the decision or action.
The submission must be made within 90
days and they must indicate the reasons
why the Registrar’s decision or action
should be changed.
The Registrar shall consider the written
submissions. After considering the written
submission, the Registrar may confirm or
change his/her decision or action and shall
notify the person who made the
submissions. The Registrar’s decision is
final.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:14
posted:9/28/2012
language:Unknown
pages:68