When commercial pressures become acute, businesses need to find ways of turning problems into opportunities. According to Audatex, the total loss scenario could be a potential candidate for removing cost from the business.

In the ten years 1998 to 2008, the number of annual total losses in the UK increased by 86%, from 430,000 to 790,000. As a proportion of total private car and fleet claims, total losses rose from 11% of claims to 17%. Excluding claims for theft, glass and personal injury, total losses as a proportion of accident damage claims increased from 16% in 1998 to an estimated 24% in 2008.

'Audatex figures show that more than 50% of total loss vehicles are unnecessarily routed to approved repairer dealers, severely impacting on cost,' said Paul Tucker, Managing Director, Audatex UK. 'In fact, our research reveals that a typical handling charge for a total loss vehicle, with an approved repairer, is around £88 including VAT, which is non-recoverable for insurance companies. Added to this, total losses not processed through approved repairers incur charges for storage, handling and transportation. As the industry struggles through the recession, it’s time to focus on cutting the costs associated with First Notification of Loss (FNOL).'

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Moneysupermarket.com has found that almost one in five drivers (19%) have or would consider fronting on their motor insurance policy to save money, with one in three (31%) saying fronting is legal.

Fronting involves a parent insuring their child's car in their name and adding the child as a second named driver when they child will actually be the main driver.

The research found:


•31% think it is allowed
•34% think it is against the law
•35% don't know.
Steve Sweeney, head of motor insurance at moneysupermarket.com said: "It's staggering to see the lack of awareness around the practice of fronting - how worrying that such a large percentage of motorists think it is either legal to do so or don't even know."


Other figures:

•22% would not run the risk of fronting – 12% of those knowing their insurance claim might not pay out if caught doing so.
•Northern Ireland and East Anglia the most honest, with 36% and 33%
•London and Wales worst, where only 15% and 17% respectively would tell the truth to their motor insurance provider.
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Esure has warned football fans not to listen to the Champions League Final tonight while driving after research by TTE Systems at the University of Leicester estimated listening to sport causes two million accidents.

The report Football Focus estimated two million motorists have had an accident or near miss while driving and listening to sport on the radio.

Using a driving simulator they found the driving behaviour of football fans varied considerably - sometimes erratically - as the match progressed.

The average motorist listens to football on the radio three times per month according to the poll, with over two million (6%) doing so every day, and 21% once a week.


The tests showed:

•football fans had larger changes in speed
•fans got closer to other vehicles on the road (tail-gating)
•the casual listener's driving behaviour was more consistent, with or without the distraction of the radio.

Examples

During a match between Portsmouth and Newcastle, the pace of the match increased with a forward movement by the Newcastle team. At the same time, the driver under scrutiny reacted by accelerating the vehicle. During this period, the throttle was set to maximum and the driver increased the simulation vehicle speed from 68mph to 77mph in 22 seconds. The driver also overtook another vehicle.

In another match, between Chelsea and Barcelona, the subject (a Chelsea fan) reacted when a Barcelona footballer was sent off, by attaining maximum speed and throttle setting at the time of the incident. At the exact point when this incident occurred, the driver increased speed to 73mph - yet his average speed during the entire study was 68mph. However, while not listening to the radio, the same subject never achieved a speed of more than 69mph.

Ask someone else to drive

Professor Michael Pont of the University of Leicester, said: "It is widely accepted that the distraction of talking on a hand-held mobile phone may lead to accidents but other activities may have a similar impact - such as listening to sport on the radio.

"The results we obtained suggest that, particularly during high-pressure situations within the games, there was a very marked impact on the behaviour of the subjects in this study. It is concluded that - where possible - football fans should ask someone else to drive during important matches such as the Champions League Final."


Listening to sport gets the red card

Mike Pickard, Head of Risk and Underwriting at esure car insurance, said: "Results from these driving simulator tests gives great cause for concern - particularly with kick-off time for the Champions League Final fast approaching - as driving behaviour can clearly be affected by listening to sport on the radio. Red cards, penalty shoot-outs, and the intensity and pace of a football match can result in sudden acceleration or deceleration, erratic lane changes, tail-gating and over-taking manoeuvres.

"Football fans should avoid listening to crucial games on the radio when behind the wheel - even if they're just running late and don't want to miss the start of a key match. It's safer to get a lift, stay at home or just don't tune in whilst driving to avoid an accident as emotions run high."


Regional Differences

•Drivers in the North West listen to sport on the radio in their car most (10 times a month)
•Welsh motorists listen to half as much live sport while driving (five times).
•Drivers in London are more affected emotionally when listening to sport on the radio (12 % experience road rage if the team they support is losing),

Gender Divide

•29% of men listen to live matches while driving once a week compared to just 13% of women
•14% of men have been distracted and taken their eyes off the road while listening to live sports on the radio while driving, Just 9% of women have
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The Nevada State Assembly is considering Senate Bill 360, the Salvaged Vehicles Act, which changes provisions governing the sale and title of salvage vehicles. The Nevada Senate passed S.B. 360 earlier this year and if the Assembly amends the bill, it would return to the state Senate

Specifically, this bill:
• Authorizes a person other than an auto wrecker, dealer of new or used motor vehicles or rebuilder to obtain an identifying card and bid to purchase a vehicle other than a nonrepairable vehicle from the operator of a salvage pool;
• Imposes a fee for the issuance of such a card;
• Prohibits a person who obtains such a card from purchasing from the operator of a salvage pool more than three vehicles in any calendar year; and
• Increases the period within which an insurance company or its authorized agent must submit an application for a salvage title or nonrepairable vehicle certificate for a salvage vehicle.

The Automotive Service Association (ASA) said it opposes this bill because it is anti-consumer and not in the best interests of the collision repair industry. It is asking repairers to oppose the legislation by contacting elected officials.

“This legislation is not helpful to the collision repair industry or to consumers,” says Bob Redding, ASA’s Washington, D.C., representative. “If it becomes law, the price of a salvage vehicle could increase, pushing more vehicles into the salvage pool, thus fewer repairs. If passed, we will see more vehicles taken out of the marketplace, which is not good for collision repairers.”

Redding said the bill also could put drivers at risk.

“There is a risk of vehicles being placed on the road that should not be, without significant inspection and repair,” he says. “Generally, our state inspection laws are not sufficient to protect the motoring public from these types of transactions. Those in less-developed countries will have even fewer consumer protections.”

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Several bodyshops recently attended an information day organised by the MVRA and Martec Training, held at Martec’s new Training Centre Newcastle Staffs.

Those who attended had the chance to view the new training centre and get involved in discussions regarding the PAS 125 BSI Kitemark.

Presentations were given by Tracey Marson (Martec Training), Chris Savill (BSI), Andy Felthouse (MVRA), Glenn Cutter (IMI) and Martin Johnson (New Platt Motors).

The object of the day was to enlighten those who attended and take away some of the mystery of PAS 125 and the Kitemark.

For those still in the dark and also undecided on how they should move forward, there will be full media coverage on BBC breakfast television on June 18 2009.

‘There was no doubt that all that attended came away with a more clear view of the PAS 125 BSI Kitemark and how it can help our industry,’ said Tracey Marson, Martec Training.
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