The South African Insurance Association (Saia) confirmed this week that its Vehicle Salvage Database (VSD) will “tentatively” go public in the country before the end of this month.
First mentioned in early 2022, the VSD will assist consumers in avoiding buying accident-damaged cars whose damage has been concealed as it will contain the details of all Code 3, 3A, and 4 written-off vehicles, free for anyone to see.
It must be noted that the list of written-off vehicles will not include every car on the road – only those insured by one of the members of the SAIA, which includes most major insurers.
More than a year in the making
The end-August deadline now announced by the Saia follows it shooting past its original target of the end of the first quarter of 2023, as well as its second target of the end of June, said the Motor Body Repairers’ Association (Sambra) national director Jacques Viljoen, in a statement to Moneyweb.
This lengthy delay, said Saia, is attributed to critical consultations that needed to take place with relevant stakeholders, including the Department of Transport (DoT) as well as the South African Police Service (SAPS), which took “longer than estimated.”
Key talking points during these discussions revolved around:
- Ensuring the stability of the platform and database
- Clarifying the legal status of information to be provided and the “own risk” disclaimer
- Developing a process for identifying possible errors and omissions, and revising the database accordingly
- Securing an agreement among Saia member companies in respect of how much historical data can be carried
- Auditing and verifying the accuracy of the information that will be provided and defining how it will be uploaded going forward
Sambra, however, is putting immense pressure on the Saia to get the VSD live as soon as possible because it believes the system will be of great importance for the public at large to assist them in making informed purchasing decisions, according to Viljoen.
Previously damaged vehicles that were cheaply repaired and are now sold under the guise of a clean bill of health is a “massive problem” in South Africa, with little to no forms of recourse currently existing for buyers caught up in this situation due to an uninformed or unscrupulous car dealer.
What you need to know
Saia said the VSD launch will take place in multiple phases, with the first phase containing information on Code 3, 3A, and 4 vehicles.
The code descriptions on the list will align with the salvage codes of the SAIA, which are:
- Code 1 – New motor vehicles delivered by a dealer to the first owner
- Code 2 – Used motor vehicles with one or more previous owners
- Code 3 – Rebuilt/permanently unfit for use
- Code 3A – Spare parts only
- Code 4 – Permanently demolished
The Code 3 designation is reserved for vehicles that were repaired and re-registered after previously being declared permanently unfit, or vehicles supplied by an unregistered manufacturer, builder, or importer.
Code 3A vehicles, on the other hand, may only be used for spare parts and have been reported to the Insurance Crime Bureau (ICB).
Code 4 cars are supposed to be permanently destroyed by means of compacting, compressing, or melting the chassis to such as extent that the vehicle would be unusable and unroadworthy.
In the second phase of the VSD rollout, which is currently scheduled to go live around December 2023, Saia said it will add Code 2 written-off vehicles.
These units tend to have one or more of the following characteristics:
- Can be repaired to a safe and roadworthy state and declared a Code 2 again
- Structural damage that can be repaired according to the manufacturer’s specification
- Deemed uneconomical to repair by insurer when damage is more than a specified percentage of the car’s value
This section of the code is where the largest part of complaints originate from, said Viljoen.
The VIN-search platform will also be funded by the in-house task team in an effort to retain its independence and it will not be used to generate revenue, said Saia. In order to keep it safe from abuse, it will employ geolocation and ID numbers to identify users, too.
Join the discussion