SALVAGE CATEGORISATION
The
rules governing the way the UK salvage industry works are changing. Many
of these changes will be ‘behind the scenes’ but the most obvious for our
salvage customers will be the salvage categories.
These changes are happening because, following the
end of VIC in 2015 and because of concerns about new vehicle materials and
technology, the ABI (Association of British Insurers) updated its Salvage Code
of Practice – the rules by which the UK salvage industry works.These
new changes start to come into effect on 1st October 2017.
The most visible change for salvage buyers will be
to the ‘repairable’ categories:
- OUT go repairable categories C and D
- IN come repairable categories S and N
The reason for this is that the new salvage
categories S and N will reflect the type of damage to the vehicle, making it
more transparent for customers. The non-repairable categories A and B remain.
At present, whether repairable salvage is
categorised as C or D depends on the cost of repair compared to the
pre-accident value. This will no longer be the case. Under the new
system the category will simply depend on the type of damage, without any
comparison of the cost and value.
Salvage with damage to the structural parts (realignment to original
dimensions or replacement of frame or chassis) of the vehicle will now be
category S (S for Structural).
Salvage that does not have any damage to structural parts will now be
classed as Category N (N for Non-structural).
From now on the V5C registration documents for all category S salvage categories
will be destroyed by the insurers and buyers will
need to apply to DVLA for a replacement V5C. This will be FREE OF CHARGE.
The V5C (where available) for category N salvage can be passed on to the salvage purchaser but if the V5C is not available then an application to DVLA is necessary, with the standard DVLA charge.
The replaced V5C issued by DVLA for CATEGORY S (Structurally damaged) WILL
be annotated (as Category C currently is) but the wording will change,
reflecting the new category definition, to: “This vehicle has been salvaged
because of structural damage but has been declared suitable for repair
following a technical evaluation”.
The replaced V5C issued by DVLA for CATEGORY N (Non-structurally
damaged) will NOT be annotated.
VEHICLE DAMAGE AREAS THAT ARE STRUCTURAL
SUMMARY OF NEW SALVAGE CATEGORIES
|
|
Category
|
|
|
A
|
B
|
N
|
S
|
|
Repairable?
|
No
|
No
|
Yes
|
Yes
|
|
Definition
|
Scrap only
|
Can be dismantled for
spares parts
|
Non-structural damage
|
Damage to the structural
frame or chassis
|
|
V5C supplied with salvage?
|
No. Insurer destroys
|
No. Insurer destroys
|
Yes, sometimes. Insurer not required to destroy. |
No. Insurer destroys
|
|
DVLA reissue V5C?
|
No
|
No
|
Yes
|
Yes
|
|
V5C annotated?
|
n/a
|
n/a
|
No
|
Yes
|
|
V5C application cost?
|
n/a
|
n/a
|
Yes
|
No
|
A copy of
the new Salvage Code of Practice downloaded from the ABI website here.
WARNING
You should never purchase or attempt to repair category A or B
salvage. An insurer has stipulated, for very good reasons (which may not
be obvious to you) that these vehicles must be destroyed. Attempts to
repair these vehicles & return them to the road in the UK or overseas is
likely to cause problems. As of 26th October 2015 DVLA no longer reissue V5Cs for these vehicles & it may not be possible to get insurance (so it will not be possible to tax or use them again).