Steps to cash settle a driveable total loss vehicle.
Prerequisites
The vehicle cannot be an unsafe vehicle, and approval for cash settlement must be obtained by the appropriate approver. Who must approve depends on the amount of the settlement.
Refer to the procedure, What is an unsafe vehicle.
When this applies
A vehicle deemed a driveable total loss may be cash settled if it meets the cash settlement requirements.
Exception: ICBC may cash settle (with the approval of the manager, estimating services) if the only unsafe damage is to the lamps and/or a possible wheel alignment, and the customer has:
- replaced the damaged lamps, and/or
- provided documentation showing a wheel alignment was completed, and that no safety concerns are evident, prior to the cash settlement.
Procedure
-
Check the claim for potential duplicate payments.
| If there are … |
Then … |
| potential duplicate payments |
- do not process the claim, and
- contact the adjuster to investigate the claim.
|
| no potential duplicate payments |
proceed to step 2. |
-
Confirm whether the Estimate or Appraisal already exists.
| If … |
Then … |
| it already exists |
- create a supplement to the Estimate or Appraisal
- complete the Total Loss Valuation
- establish the actual cash value (ACV)
- record the ACV, and
- deduct the salvage value from the ACV by using the Salvage Value Inquiry System, or recycled vehicle program contract amount.
|
| it does not already exist |
- complete the vehicle’s Estimate or Appraisal
- complete the Total Loss Valuation
- establish the ACV
- record the ACV, and
- deduct the salvage value from the ACV by using the Salvage Value Inquiry System, or recycled vehicle program contract amount.
|
-
Determine the appropriate cash settlement amount.
Note: Calculate the cash settlement for a driveable total loss by deducting the salvage from the ACV.
-
Obtain approval from the appropriate manager (depends on the settlement amount).
Note: If the claim is a commercial or heavy equipment claim, then the approval process differs. Refer to the procedure, Approve commercial claims cash settlement.
| If the cash settlement is … |
Then the approver is the … |
| under $1,000 (inclusive of driveable total losses) |
estimator. |
| $1,000 through $5,000 |
manager, estimating services. |
| over $5,000 |
manager, operational estimating services. |
Important: In addition to the cash settlement amount, the Estimating Services Manager must also approve of a cash settlement when the claim is a:
- hit and run claim, or
- audio, visual, and communication equipment claim.
-
Confirm how the Estimate or Appraisal is generated.
-
Specify the vehicle as a Confirmed Total Loss.
-
Retrieve the auto-created Total Loss Assignment activity and assign it to yourself.
-
Update the activity.
From within the claim:
- add a note that the claim was cash settled
- add the settlement amount, and
- complete the activity.