Ontario Ontario Mandatory Vehicle Mandatory Vehicle Branding ProgramBranding Program

Industry StakeholdersIndustry StakeholdersIn the Mandatory Branding ProgramIn the Mandatory Branding Program

Government/Police

New & Used Car Dealers

Recycling/Wrecking

Collision Repair

Industry StakeholdersIndustry Stakeholders

Vehicle RebuilderFleet/Leasing/Rental companiesInsurance Industry(appraisers,

adjusters,brokers,companies)Autobody supply or parts suppliers

AGENDAWho will brand?Program objectives and highlightsWhat are the brands?When do we brand?How to assign a proper brandReporting brandsDefinitionsPenalties

Program ObjectivesProgram ObjectivesEnhance 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.

WHAT 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.

Program Delivery & ScopeProgram Delivery & Scope

Important part of the Ministry’s Road User Safety Agenda.

Status of the Mandatory Status of the Mandatory Branding ProgramBranding 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.

Status of the Mandatory Status of the Mandatory Branding ProgramBranding Program

Began March 31, 2003

Program ElementsProgram Elements

Program is comprised of two components:

1) vehicle registration/permit “branding”

2) rebuilt vehicle inspection standards

TriggersTriggers

Vehicle must be defined as “total loss” as a result of:

CollisionImpact FireFloodTheft

What is a Total LossWhat is a Total Loss

A 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.

TOTAL LOSS

For the determination of “total loss”, the estimated cost of repairing the vehicle must be calculated using reasonable commercial rates for parts, supplies and labour.

SALVAGE VALUE

“Salvage value” means the value of a damaged, or stolen and dismantled vehicle that is legitimately recoverable through commercial means of disposal.

BRAND REQUIREMENT

ALL vehicle permits now have a brand identifier located on the vehicle portion of the registration permit.

Vehicle RegistrationVehicle RegistrationPermit BrandingPermit Branding

NONESALVAGE (can be changed)IRREPARABLE (parts only)REBUILT STOLEN (system flag only)

The following status brands can be found on the Ministry of Transportation’s vehicle registration system:

NONE BRAND

ALL 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.

None Brand A 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.

DETERMINATION OF DAMAGE

Structural Assembly replacement, rather than repair, is an important criteria when determining a brand.

DETERMINATION OF BRAND

When one or more of the structural assemblies in a vehicle require replacement then the vehicle is considered “salvage”

SALVAGESALVAGE

Salvage brand can be changed to “Rebuilt”.

Brand may also be applied when stolen vehicles are recovered damaged.

SALVAGESALVAGE

Shown on the Vehicle Registration Permit.

Vehicle is not damaged as badly as an irreparable.

Can be safely repaired for road use.

SALVAGE BRAND

This 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.

Salvage Brand

Any 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.

Salvage Brand

Salvage 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

Salvage Brand

Any vehicle that is defined as a “re-assembled vehicle” will automatically be branded as “salvage”.

No motorcycles can be branded as “salvage”

REBUILT BRANDREBUILT BRAND

A “salvage” branded vehicle that has been inspected and certified by a licensed Structural Inspection Station.

Rebuilt Brand

Any 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.

Configuration Of Vehicle

Will determine the specific number of major structural assemblies of the occupant area that require replacement before a vehicle is branded irreparable.

MAJOR ASSEMBLY MAJOR ASSEMBLY COMPONENTSCOMPONENTS

When at least 3 or more of the structural assemblies in Section 2 require replacement, the vehicle is considered “irreparable”.

IRREPARABLEIRREPARABLE

Requires replacement of at least 3 structural assemblies in occupant area.

IRREPARABLEIRREPARABLE

•Shown on a Vehicle Permit•Cannot be safely repaired.•Vehicle is for parts only.•Cannot be licensed for road use.

On 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

IRREPARABLE BRAND

Irreparable Brand

Vehicles 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.

STOLEN FLAG

This 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”

Exceptions branding/inspectionExceptions branding/inspectionTrailersVehicle with model year of

1980 or earlierSnowmobilesAll Terrain Vehicles (ATV)Road Building MachinesMotorcycles (irreparable only)

RE-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.

Definition of an Insurer

An Insurer is defined as

1) An insurer as defined in subsection 1(1) of the Compulsory Automobile Insurance Act or,

2) A person who owns, leases or holds the plate portion of the vehicle permit for 10 or more vehicles, the policies of insurance for which do not cover damage caused by all perils.

REPORTING REPORTING REQUIREMENTSREQUIREMENTS

BRAND ASSESSMENT The 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, or An individual who holds a valid and up-to date

Certificate of Qualification issued by the Ontario Ministry of Training, Colleges and Universities.

This Certificate must be for the trades of :

Truck and Coach Technician or Auto Body Collision Damage Repairer or Automotive Service Technician,

and is employed by a licensed structural inspection station.

A person holding an Auto Body Technician Certificate of Qualification is not able to make assessments for the purposes of this program. (310Q)

The insurer and all others that determine a brand, shall providethe insured or other person on whose behalf the branding inspection is carried out with a copy of the record used and created 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 used for this inspection for 2 years.

The technician will only inspect within the scope of his/her Certificate of Qualification for their specific trade.

REPORTINGREPORTING

Insurance 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.

REPORTINGREPORTINGInformation 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 settlement

Information must be reported to the Registrar by insurer (b) no later than: 6 days from date of incident    

REPORTING

Individuals 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 insurance

does have insurance but the damage is not covered by the policy;

does have insurance but a claim is not paid within 25 days

REPORTING

A 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.

Insurers 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.

Name of the insurer.Registrant Identification Number (RIN) of the insurer.Address of the insurer.Insurance claim number.Name of insured.

Telephone, fax, or e/mail. Name and address of individual making the

notification on behalf of the insurer.Signature of the individual making the

notification on behalf of the insurer.Notification from insurer to the Registrar

shall be in writing

Non-Insurers Must Include:Non-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.

Name, 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.

Relationship 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.

Notification of Vehicle Brand form can be submitted to any of the Driver and Vehicle License Issuing Offices in Ontario

IRREPARABLE also is a vehicle that is a “total loss” and:

1) Has been immersed in liquid to the bottom of itsdashboard or higher2) Any major part of its electrical system has been or appears to have been immersed in liquid.

Major parts are:a) A fuse panel or breaker panel.b) A component that monitors, triggers or controls any

component of the vehicle’s occupant restraint systems.c) An electronic component that transmits or relays

power for use in the heating or cooling of the vehicle’soccupant compartment.

d) An electronic component that transmits or relays powerfor use in the vehicle’s defogging or defrosting systems.

e) An electronic component that controls the vehicle’s primary operating systems.

f) A main wiring harness with unsealed connections that is located in the occupant compartment.

g) An electronic module that controls the vehicle’s on boardself-diagnostic system, excluding communications,

navigation and entertainment systems.

h) An electronic module that controls the vehicle’s brakingsystems or steering systems

Surgically Dismantled VehicleA vehicle that is a “total loss” and has been stolen and dismantled such that the retail price for new parts of a like kind to replace those parts missing or damaged exceeds thefair labour cost to install or repair those parts and,

a) a settlement of an insurance claim has been paid for the vehicle as a total loss or

b) The vehicle is owned, leased or the plate portion of itsvehicle permit is held by a person who is an insurer within the meaning of this regulation

For the purposes of the definitions of “SALVAGE” and “IRREPARABLE”, a structural assembly, structural firewall Or bulkhead assembly requires replacement if:

a) 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 the commonly accepted standards of the auto body collisionrepair industry or

b) it has been damaged by heat beyond the manufacturer’s repair standards or, if there are no manufacturer’s repair standards, beyond the commonly accepted standards of the auto body collision repair industry.

PENALTIESPENALTIESThere 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 $400.00 and not more than $20,000.00.

A 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 $400.00 and not more than $20,000.00

A 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 $400.00 and not more than $20,000.00.

A 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 $200.00 and not more than $20,000.00.

No 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.

Driving ProhibitedDriving Prohibited

No 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.  

ExceptionsExceptions

When 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.

A 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 $100.00 and not more than $500.00, and on each subsequent conviction, to a fine of not less than $200.00 and not more than $1,000.00.

APPEALSAPPEALS

If 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.

The submission must be made within 90 days and they must indicate the reasons why the Registrar’s decision or action should be changed.

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.