Last updated 2024-02-22

Managing a total loss settlement dispute

How to handle a potential dispute when a customer is unsatisfied with their vehicle valuation.

When this applies

The customer has indicated that they are unsatisfied with their valuation amount. This is considered a coverage dispute in the Basic Vehicle Damage coverage regulation.

Note: A shortfall payment may be processed without a dispute if the actual cash value (ACV) amount has increased, for example, the customer has provided receipts or options were missed.

Process

  1. Original exposure owner
    1. Discusses the total loss settlement with the customer.
    2. Asks the customer if they would like a manager to review their settlement.
      When the customer answers ... Then the claims representative ...
      yes

      creates the TL - ACV Dispute activity and assigns it to their manager.

      Note: If a manager or their designate is unable to resolve the ACV dispute, they must reassign the activity to their manager.
      no end process.
    3. Estimating Services manager discusses ACV with the customer.
      When the customer ... Then ...
      agrees with the ACV end process.
      does not agree with the ACV
      the Estimating Services manager
      • completes the MD Arbitration Application (CL326D) form
        Note: The appointment of an impartial arbitrator eliminates difficulties on agreeing on an arbitrator, and a document-only submission is not as expensive as a hearing.
      • sends the CL326D form to the customer for signature
        Note: Once the customer completes the CL326D form, they submit it to the BC Arbitration and Mediation Institute.
      • creates MD Dispute - Follow up activity and assigns to self, and
      • provides the customer with the Vehicle Damage Arbitration Rules provided by the B.C. Arbitration and Mediation Institute.
  2. Arbitrator
    1. Instructs both the customer and the estimating services manager
      • where to send their cheque for the applicable arbitration fee plus taxes
      • of the submission date, and
      • where submissions should be sent.
  3. Estimating services manager
    1. Creates the document-only arbitration package.
    2. Submits two copies of the appraisal to the arbitrator by the submission date.
  4. Customer
    1. Submits two copies of the appraisal to the arbitrator by the submission date.
  5. Arbitrator
    1. Receives the submissions from both parties and reviews them.
    2. Sends a copy of each party's appraisal submission to the other party for review.
  6. Customer and estimating services manager
    1. Receives copies of the other's appraisal and decides whether to use the additional options available to them.
    When one party ... Then the ...
    chooses to comment on the other's appraisal party may submit written comments in rebuttal of the other party's appraisal within a time frame set by the arbitrator.
    Note: Parties may not submit further appraisals or comments on the rebuttals.
    requests additional evidence
    • other party submits two copies to the arbitrator, and
    • arbitrator sends one copy to the requesting party.
    Note: Rebuttals are permitted.
    • requests the arbitrator holds a hearing to present additional evidence, or
    • clarifies the other party's submission
    		 arbitrator chooses whether to hold a hearing.
    Note: When the arbitrator agrees to the hearing and additional hourly fee applies. This fee is shared equally between the two parties.
  7. Estimating services manager
    1. Attaches all arbitration documents to the claim, and sends them to the Document Capture Facility (DCF).
  8. Arbitrator
    1. Makes a decision in writing that is binding to both parties.
      Note: The decision is based on the evidence forwarded by both parties to the arbitrator.
  9. Estimating services manager
    1. Completes the MD Dispute - Follow up activity.
Parent topic: Total loss settlement dispute policy