Handle a claim with manufacturer’s defect or faulty workmanship

Create a subrogation investigation when a claim is related to a manufacturer’s defect or faulty workmanship.

Procedure

1. If requesting an engineer's report, ensure the engineer has completed their vehicle inspection.
   Note: You must obtain manager approval before hiring an engineer.
2. Determine whether vehicle is repairable.

   If the vehicle is …	Then …
   repairable, and has manufacturer's defect or faulty workmanship work outstanding	advise the customer to contact their dealership to arrange to have the manufacturer's defect or faulty workmanship service completed.
   repairable, and has no manufacturer's defect or faulty workmanship work outstanding	go to step 5.
   a total loss	proceed with Total Loss procedures and contact the material damage (MD) research coordinator for further direction.

3. Determine whether vehicle is driveable.

   If the vehicle is ...	Then ...
   driveable	have the driver attend their dealership at the specified time.
   not driveable, or the customer opts not to drive the vehicle	arrange to have the vehicle towed to the dealership.

   Result:
   

   The dealership completes the recall work.

4. Advise the customer of the vehicle’s status and remove the hold from the estimate.
5. Have the customer take the vehicle to the repair facility for the remaining repairs.

   If the vehicle is not driveable, arrange to have the vehicle towed to the customer’s choice of repair facility.

6. Review the engineer’s report to determine the cause of the loss, if applicable.

   If the loss is ...	And the claim has a date of loss (DOL) ...	Then ...
   due to a manufacturer’s defect or faulty workmanship	on April 30, 2021, or earlier	create a subrogation investigation through the Actions menu and select Subrogation Investigation have the vehicle damage exposure owner initiate a Subrogation – MANUFACTURER'S DEFECT/FAULTY WORKMANSHIP activity if the claim is for MD only, have the customer sign a Property Damage Release (CL38), once the repairs are complete, and send a copy to the MD research coordinator.
   	on May 1, 2021, or later	create a subrogation investigation through the Subrogation screen in ClaimCenter and add Subrogation Investigation have the vehicle damage exposure owner initiate a Subrogation – MANUFACTURER's DEFECT/FAULTY WORKMANSHIP activity if the claim is for MD only, have the customer sign a Property Damage Release (CL38), once the repairs are complete, and send a copy to the MD research coordinator. Note: For claims with a date of loss (DOL) on May 1, 2021, or later, manufacturer's defects are an exception to the lawsuit ban. Refer to the procedure Create a subrogation investigation for more information.
   not due to a defect or faulty workmanship	--	pay the claim.

   Note: The MD research coordinator advises Transport Canada of the claim details.