Last updated 2022-06-30
Page ID: 4bab
Rules on owner retention of salvage
As a general rule, ICBC does not allow vehicle owners to retain their total loss vehicles unless there are extenuating circumstances.
Eligibility
The policy applies to all total loss vehicles and when a customer wants to keep their vehicle salvage after it has been declared a total loss by ICBC.
Note: There are subtle differences between owner retention and owner buy back. For more information, refer to Owner retention and owner buy back comparison.
Policy
ICBC does not allow vehicle owners to retain their total loss vehicles.
Exception: The Estimating Services manager, or Commercial Estimating Services manager may approve exceptions for an owner retention request if there are extenuating circumstances.
ICBC does not allow owner retention for Lessees or Renters on non-owned, out of province (OOP) vehicles. In some cases ICBC may cash settle at actual cash value (ACV), less salvage value with the out of province owner.
Note: Contact the Commercial Claims MD Manager for more assistance.
All potential payees of the settlement proposal must be advised in advance. They must also agree to the proposal in order for the net payment amount to be enough for all insureds and lienholders.
Note: If there is a dispute about the settlement proposal, refer to Policy on total loss settlement disputes.
A salvage vehicle must be sold
- using the ICBC salvage procedures to ensure an appropriate recovery is completed
- with the proper designation applied and notice of the vehicle registration status given to the Vehicle Registration Support (VRS) department, and
- with consideration to any potential environmental risk for which ICBC could be held responsible.
Exceptions
An Estimating Services manager, Commercial Estimating Services manager, or designate may permit an owner to retain a total loss vehicle on an exception-only basis under circumstances such as, but not limited to, when the vehicle
- has a special value to the owner:
- a collector vehicle
- a vehicle with specialized equipment, or
- a fleet operator vehicle
- poses no environmental risk or health safety risk, and
- owner acknowledges and agrees that the:
- vehicle’s registration will be changed as appropriate, and
- Vehicle Registration Support (VRS) Department will be informed of the required vehicle status change to Salvage or Non-repairable, and will process the change before any payment is issued by the claim office.