You are likely aware we work for vehicle information suppliers, the public and insurers, assisting with ‘diminution in value’ and/or ‘loss of title’ claims – read more here. In brief, if an information supplier informs a customer the vehicle is ‘clear’ (not on finance, a total loss or stolen) and it transpires this was incorrect, the customer may claim against the information provider.
Similarly, we assist insurers and the public who come to us directly. These claims have given us a unique insight into vehicle data, processes and the associated scams.
- We have noted, of late, an increase in vehicles that have been dealt with as salvage, are ‘total losses’ or ‘write-offs’ but have either not been recorded on MIAFTR2 or were recorded late.
Whether you handle claims from commencement to conclusion and are responsible for MIAFTR2 submissions, or are involved in the claims process, please could you reinforce the need to submit prompt notifications to MIAFTR2 – certainly pre-disposal!
A party handling such a total loss claim, not submitting the MIAFTR2 entry for almost a year (by which time it had been sold on to an unsuspecting buyer ‘unrecorded’), has recently written:
‘It would seem from what I can tell that the MIAFTR was a late submission on our behalf, however MIAFTR is not a mandatory requirement and some insurers do not use it at all’
This does not appear to sit well with the ABI’s salvage code of practice:
A MIAFTR entry must be completed in respect of all categorised vehicles, indicating the salvage category as soon as reasonably practical after the inspection.
Completing a MIAFTR entry meets the regulatory requirements for insurers/ self-insured 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 submitted within two working days of the final decision
Indeed, given the potential problems associated with salvage, there appears merit in the availability of another category, possibly a ‘U’ i.e. ‘unclassified’ that would alert to a claim notified, in progress, but as yet unseen/uncategorised. We are however mindful that this may add to an insurer/agent’s workload.
In another claim, the managing agent has recently written that they wish to communicate with the buyer of a Cat B (break for parts) vehicle they overlooked adding to MIAFTR, ‘in an attempt to resolve’. A favourable response about a car that will cause a loss for someone of about £13,000 simply because it was not added to MIAFTR2!
In the third ongoing matter, the claims managing agent for a well-known fleet has simply not responded despite us having reduced the associated loss to less than £2,000 – watch this space.