New Salvage Code of Conduct From the ABI

One for the claims specialists in the Motor segment;

The ABI has updated its Salvage Code of Practice, to bring the guidance in line with new vehicle technology.

Setting out detailed guidance for insurers and salvage firms regarding how written-off vehicles should be categorised, the voluntary code helps ensure that unsafe vehicles and parts are not put back onto our roads.

After extensive collaboration with industry stakeholders – including insurers, the Motor Insurers’ Bureau (MIB), and Thatcham Research – the updates improve the clarity of the salvage code and its vehicle categorisation and disputes processes, and reflects changes brought on by rapidly advancing vehicle technologies.

The updated Salvage Code of Practice now brings electric and hybrid vehicles within its guidance, and considers megacasting,¹ reusable parts, and other advanced vehicle construction methods. It also features improved wording for different vehicle types, such as Heavy Goods Vehicles and motorcycles. The Code was last updated in 2019.

Mark Shepherd, Head of General Insurance Policy at the ABI, said: “By ensuring that consumers have transparency about the history of vehicles they are considering buying, the salvage code is a great example of the insurance industry working together to make the UK’s roads safer. It’s important the code moves with the times, and this update reflects the increasing sophistication of our vehicles, including new powertrains and construction methods.”