Hot News - July 1998

STOLEN AND SALVAGE VEHICLE PROGRAM

SUMMARY OF CHANGES TO REGS 601 &611

Starting July 27, 1998, the Ministry of Transportation (MTO) will begin to implement its Stolen and Salvage Vehicle Program. This program will complement a national program of CCMTA which will be implemented by all provinces by the end of 1999. The purposes of the program are: to reduce the incentive for commercial auto theft; to promote insurance rate stability; to provide protection for used car buyers; and to improve road safety.

There are two major components: Vehicle Permit Branding; and Rebuilt Vehicle Inspection Standards.

1. Vehicle Permit: Branding

Four different brands will be utilized in MTO1s computerized registration system to identify the status of certain vehicles: "irreparable 91, "salvage", "rebuilt" and "stolen The "stolen" brand will notify vehicle registration clerks and the police that the subject vehicle is stolen and that changes to ownership will not be permitted. The other brands will be included in the registration file, and printed on any registration permits, vehicle histories, or Used Vehicle Information Packages (UVIP's) prepared by MTQ.

Vehicles severely damaged as a result of an accident and written-off by the insurer will be branded either "irreparable" or "salvage". Any vehicle branded as "irreparable" can only be used for parts and scrap, and can never be plated or operated on public roads. Vehicles branded "salvage" may be rebuilt and replated, provided that they pass a structural inspection and receive the appropriate certificate, and that they pass a safety standards inspection according to current requirements.

2. Rebuilt Vehicle Inspection Standards

Regs. 601 and 611 will be changed to allow a new type of MVIS to perform inspections of vehicles branded "salvage" in order to issue a new type of safety certificate to show that the vehicle has been rebuilt to the manufacturers' standards. This will ensure the safety of rebuilt vehicles, and will be a significant improvement to the quality of such cars and trucks on the road today. The "rebuilt" status will be shown on the registration certificate and the file for the remainder of the vehicle's existence.

In order to properly inspect rebuilt vehicles, inspection stations must maintain specific measuring equipment, and must be staffed by qualified personnel. Also, the owner of the rebuilt vehicle will be required to keep a rebuilding record of that vehicle in order for the structural inspection to take place. Summary forms of this information must be sent to MTO for audit and enforcement purposes. This documentary information will reduce the likelihood of stolen parts finding their way into rebuilt cars.

Vehicle Programs Improvement Project July, 1998