Cash settle a driveable total loss

Steps to cash settle a driveable total loss vehicle.

Prerequisites

The vehicle is not an unsafe vehicle.

When this applies

A customer requests to cash settle their vehicle that was deemed a driveable total loss.

Exception: ICBC may cash settle, with the approval of the estimating services manager, 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 claim owner or exposure owner to investigate the claim. Note: Proceed to step 2 once the claim owner or exposure owner confirms that any duplicate payments have been resolved.
no potential duplicate payments	proceed to step 2.

Confirm if the Estimate or Appraisal already exists.

If the Estimate or Appraisal …	Then …
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 IAA Market Guide market value, or recycled vehicle program contract amount.
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 IAA Market Value Guide market value, or recycled vehicle program contract amount.

Determine the appropriate cash settlement amount.

Cash settlement amount = ACV - salvage

Obtain approval from the appropriate manager.

Note: If the claim is a commercial or heavy equipment claim, then the approval process differs. For additional information, refer to Approve commercial vehicle cash settlement.

If the cash settlement is …	The approver is the …
under $1,000 (inclusive of driveable total losses)	estimator.
$1,000 through $5,000	estimating services manager.
over $5,000	operational estimating services manager.

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 that the vehicle as a Confirmed Total Loss.
Retrieve or create the EST - Cash Settlement activity.
Add a note to the claim stating that the claim was settled and include settlement amount.
Complete the activity.