Complete an owner buy back request for a commerical vehicle

How a commercial estimator or commercial claims appraiser assesses the vehicle status and completes an owner buy back request for a commercial vehicle.

Procedure

1. Confirm the vehicle status on the Total Loss Worksheet.

   If the vehicle is ...	Then the ...
   non-repairable (dismantle purposes only (DPO))	insurance is void vehicle can be used for parts or scrap vehicle cannot be licensed or insured under any circumstances, and non-repairable status is permanent and cannot be changed.
   salvage	insurance is void, and vehicle cannot be licensed or insured for highway use until it is certified to be structurally and mechanically roadworthy by a licensed designated inspection facility. Important: The inspection facility must be approved by the Commercial Vehicle Safety and Enforcement Branch of the Ministry of Transportation and Transit.

2. Determine if the vehicle poses any environmental or health risks to the public.

   If the vehicle ...	And ...	Then ...
   poses a risk	risks can be eliminated	follow the appropriate Occupational Health and Safety procedures for handling and disposing of the bio-hazardous materials, and proceed to step 3.
   	risks cannot be eliminated	add a note on the claim, and notify the registered owner (RO) that the vehicle no longer qualifies for owner retention. End of procedure.
   does not pose a risk	--	proceed to step 3.

3. Obtain salvage value using the IAA Market Guide.
4. Contact the RO.
   1. Advise if the vehicle is
   • salvage
   • non-repairable - DPO.
5. Send the Commercial Salvage Purchase (Owner Buy Back) Agreement (CL96N) form for signature using Email templates for total loss commercial vehicles.
   Note: If the purchaser is a prorate operator with a valid prorate number, and the intended use of the repaired vehicle, or its parts is for prorate purposes, they can use their prorate number to claim provincial sales tax (PST) exemption.
   1. Receive the signed CL96N form.
   2. Attach the signed CL96N form to Documents using the Standardized document tagging policy.
   3. Send the signed CL96N form by email to Vehicle Registration Services (VRS) at [email protected].
   4. Attach the email response from VRS to the claim, with Document name of Vehicle Registration and Licencing Inquiry.
      Note: The VRS department must be notified to ensure that the vehicle registration status can be updated in the database before any settlement funds are released. VRS will respond with an email titled "Confirmation of Change to Vehicle Registration".
6. Navigate to Estimating Decisions within the Vehicle tab.
   1. Update Confirmation to Owner Buy Back Requested (Commercial Use Only).
   2. Add entry - Obtained PDF Ownership Transfer Agreement, and include comment: CL96N - Commercial Salvage Purchase (Owner Buy Back) Agreement.
7. Send the RO a copy of the Confirmation of Change to Vehicle Registration report, which confirms the vehicle's status has been updated on ICBC's vehicle registration database.
8. Calculate the total loss settlement amount.

   Total loss settlement amount = Original total loss settlement - IAA Market Guide amount - taxes (GST and PST)

   Note: Some commercial customers may be PST exempt and therefore PST amounts would not be considered in the calculation. For additional information on calculating the settlement amount, refer to Add a Standard Vehicle Valuation.
   1. Determine the payees to be listed on the settlement cheque.
      Note: For additional information, refer to Determine payees on a total loss settlement payment.
   2. Confirm a debt refresh has been completed for any payees that will be listed on the cheque, such as beneficial owner and Doing Business As (DBA).
      Note: For additional information about debt refresh, refer to Process a payment using Cheque Wizard.
   3. Confirm the applicable taxes based on the requester. To determine the applicable taxes, refer to Applicable taxes for owner buy back.
9. Enter calculated amounts into the Cheque Wizard.
   1. Enter the total loss settlement amount.
   2. Add an amount for the applicable taxes (Allowance for GST and Allowance for PST), based on the original settlement amount.
   3. Apply the deductible.
   4. Enter the IAA Market Guide tax details in the Comments field.
      Important: The following format must be accurately followed for reporting purposes: Claim AA#####-#; OBBTAX, GST amount, PST amount.

      Example

      BW12345-6, OBBTAX, GST $50, PST $70

   5. Enter the settlement details in the Memo field.

      Example

      Claim BW12345-6; Vehicle settlement for a 2020/Honda/Civic; VIN ABCD715123DCBA; less $300 deductible, less Owner Buy Back amount

10. Create a note on the claim indicating all information was provided to the RO.
11. Update the Estimating Actions table with the following:
    • Estimated Salvage Amount
    • Vehicle Value Settled, and
    • Cheque Released to Customer.
12. Add entry 'Vehicle Removed from Salvage Process' to the Salvage Action table.
13. Release the salvage vehicle to the RO.

    If the vehicle is stored at ...	Then advise the ...
    an off-site storage and salvage sales facility incurring fees	storage facility that ICBC will only pay for storage fees up to a maximum of five days using the Removal From Tow Yard(CL555) or (CL555A) letter, and RO that the vehicle is now in their possession for further handling.
    an ICBC salvage facility	RO that they must arrange to tow the vehicle out of the location within a maximum of five days, and the vehicle is now in their possession for further handling.
    a repair facility	RO that the vehicle is now in their possession for further handling.