2Industry Stakeholders In the Mandatory Branding Program Government/PoliceNew & Used Car DealersRecycling/WreckingCollision RepairWe have many stakeholders to acknowledge for their participation in this project
3Industry Stakeholders Vehicle RebuilderFleet/Leasing/Rental companiesInsurance Industry(appraisers, adjusters,brokers,companies)Autobody supply or parts suppliers
4AGENDA Who will brand? Program objectives and highlights What are the brands?When do we brand?How to assign a proper brandReporting brandsDefinitionsPenalties
5Program 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.
6WHAT 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.
7Program Delivery & Scope Important part of the Ministry’s Road User Safety Agenda.
8Status 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.
9Status of the Mandatory Branding Program Began March 31, 2003
10Program Elements Program is comprised of two components: 1) vehicle registration/permit “branding”2) rebuilt vehicle inspection standards
11Triggers Collision Impact Fire Flood Theft Vehicle must be defined as “total loss” as a result of:CollisionImpactFireFloodTheft
12What is a Total LossA 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.
13TOTAL LOSSFor the determination of “total loss”, the estimated cost of repairing the vehicle must be calculated using reasonable commercial rates for parts, supplies and labour.
14SALVAGE VALUE“Salvage value” means the value of a damaged, or stolen and dismantled vehicle that is legitimately recoverable through commercial means of disposal.
15BRAND REQUIREMENTALL vehicle permits now have a brand identifier located on the vehicle portion of the registration permit.
16Vehicle Registration Permit Branding The following status brands can be found on the Ministry of Transportation’s vehicle registration system:NONESALVAGE (can be changed)IRREPARABLE (parts only)REBUILTSTOLEN (system flag only)
17NONE BRANDALL 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.
18None BrandA 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.
19DETERMINATION OF DAMAGE Structural Assembly replacement, rather than repair, is an important criteria when determining a brand.
20DETERMINATION OF BRAND When one or more of the structural assemblies in a vehicle require replacement then the vehicle is considered “salvage”
21SALVAGE Salvage brand can be changed to “Rebuilt”. Brand may also be applied when stolen vehicles are recovered damaged.
22SALVAGE Shown on the Vehicle Registration Permit. Vehicle is not damaged as badly as an irreparable.Can be safely repaired for road use.
23SALVAGE BRANDThis 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.
24Salvage BrandAny 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.
25The vehicle will still have an unfit designation at this time Salvage BrandSalvage 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
26Salvage BrandAny vehicle that is defined as a “re-assembled vehicle” will automatically be branded as “salvage”.No motorcycles can be branded as “salvage”
27REBUILT BRANDA “salvage” branded vehicle that has been inspected and certified by a licensed Structural Inspection Station.
28Rebuilt BrandAny 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.Use the word Default when indicating that the brand will fall back to salvage
29Configuration Of Vehicle Will determine the specific number of major structural assemblies of the occupant area that require replacement before a vehicle is branded irreparable.
30MAJOR ASSEMBLY COMPONENTS When at least 3 or more of the structural assemblies in Section 2 require replacement, the vehicle is considered “irreparable”.
31IRREPARABLERequires replacement of at least 3 structural assemblies in occupant area.
32IRREPARABLE Shown on a Vehicle Permit Cannot be safely repaired. Vehicle is for parts only.Cannot be licensed for road use.
33IRREPARABLE BRANDOn 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
34Irreparable BrandVehicles 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.
35STOLEN FLAGThis 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”
36Exceptions branding/inspection TrailersVehicle with model year of 1980 or earlierSnowmobilesAll Terrain Vehicles (ATV)Road Building MachinesMotorcycles (irreparable only)
37RE-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.
38Definition of an Insurer An Insurer is defined asAn insurer as defined in subsection 1(1) of theCompulsory Automobile Insurance Act or,A person who owns, leases or holds the plateportion of the vehicle permit for 10 or more vehicles,the policies of insurance for which do not coverdamage caused by all perils.
40BRAND ASSESSMENTThe 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, orAn individual who holds a valid and up-to date Certificate of Qualification issued by the Ontario Ministry of Training, Colleges and Universities.
41This Certificate must be for the trades of : Truck and Coach Technician orAuto Body Collision Damage Repairer orAutomotive Service Technician,and is employed by a licensed structural inspection station.A person holding an Auto Body Technician Certificate ofQualification is not able to make assessments for the purposesof this program. (310Q)
42The insurer and all others that determine a brand, shall provide the insured or other person on whose behalf the brandinginspection is carried out with a copy of the record used andcreated in carrying out the inspection, and the insured orother person shall retain those records for two years.Every motor vehicle inspection station that provides this determination of brand must retain the documents usedfor this inspection for 2 years.The technician will only inspect within the scope ofhis/her Certificate of Qualification for their specific trade.
43REPORTINGInsurance 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.
44REPORTINGInformation must be reported to the Registrar by insurer (a) no later than:6 days from becoming the owner of the vehicle14 days from date of settlementInformation must be reported to the Registrar by insurer (b) no later than:6 days from date of incident
45REPORTINGIndividuals 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 insurancedoes have insurance but the damage is not covered by the policy;does have insurance but a claim is not paid within 25 days
46REPORTINGA 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.
47Insurers 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.
48Name of the insurer.Registrant Identification Number (RIN)of the insurer.Address of the insurer.Insurance claim number.Name of insured.
49Telephone, fax, or e/mail. Name and address of individual making thenotification on behalf of the insurer.Signature of the individual making theNotification from insurer to the Registrarshall be in writing
50Non-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.Notification to Registrar from non-insurers must include:
51Name, 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.
52Relationship 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.
53Notification of Vehicle Brand form can be submitted to any of the Driver and Vehicle License Issuing Offices in Ontario
54IRREPARABLE also is a vehicle that is a “total loss” and: Has been immersed in liquid to the bottom of itsdashboard or higherAny major part of its electrical system has been orappears to have been immersed in liquid.Major parts are:A fuse panel or breaker panel.A component that monitors, triggers or controls anycomponent of the vehicle’s occupant restraint systems.An electronic component that transmits or relayspower for use in the heating or cooling of the vehicle’soccupant compartment.An electronic component that transmits or relays powerfor use in the vehicle’s defogging or defrosting systems.Keep in mind that this is already a total loss vehicle so what we are doing here is inserting definitions that will protect the consumer both for safety and for financial concern due to latent onslaught of water related problems to the electrical system
55An electronic component that controls the vehicle’s primary operating systems.A main wiring harness with unsealed connections that islocated in the occupant compartment.An electronic module that controls the vehicle’s on boardself-diagnostic system, excluding communications,navigation and entertainment systems.An electronic module that controls the vehicle’s brakingsystems or steering systems
56Surgically Dismantled Vehicle A vehicle that is a “total loss” and has been stolen anddismantled such that the retail price for new parts of a likekind to replace those parts missing or damaged exceeds thefair labour cost to install or repair those parts and,a settlement of an insurance claim has been paid for thevehicle as a total loss orThe vehicle is owned, leased or the plate portion of itsvehicle permit is held by a person who is an insurer withinthe meaning of this regulation
57For the purposes of the definitions of “SALVAGE” and “IRREPARABLE”, a structural assembly, structural firewallOr bulkhead assembly requires replacement if: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 thecommonly accepted standards of the auto body collisionrepair industry orit has been damaged by heat beyond the manufacturer’srepair standards or, if there are no manufacturer’s repairstandards, beyond the commonly accepted standards of theauto body collision repair industry.
58PENALTIESThere 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 $ and not more than $20,
59A 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 $ and not more than $20,000.00
60A 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 $ and not more than $20,
61A 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 $ and not more than $20,
62No 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.
63Driving ProhibitedNo 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.
64ExceptionsWhen 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.Bullet 2 refers to a rebuilt and unfit vehicle
65A 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 $ and not more than $500.00, and on each subsequent conviction, to a fine of not less than $ and not more than $1,
66APPEALSIf 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.
67The submission must be made within 90 days and they must indicate the reasons why the Registrar’s decision or action should be changed.
68The Registrar shall consider the written submissions 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.