SAIA

South African Insurance Association

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Interim Guidelines on the salvage of motors- Bulletin May 2019

Background Information

Certain NaTIS coding and salvage practices in the non-life insurance industry might not align with the Regulation 13A of the National Road-Traffic Act (Act 93 of 1996). This resulted in SAIA and the Insurance Crime Bureau (ICB) engaging with the Department of Transport (DoT) to seek a solution to ensure compliance and practicality.

The application of Regulation 13A in its current form might have negative implications for the legitimate second-hand spares market in that the unavailability of second-hand parts could lead to an increase in the theft of motor vehicles solely for the sale of useable parts, and thereby also increase in the cost of insurance.

Interim Guidelines to be used by SAIA motor members
Therefore, SAIA and through its Technical Guidelines Task Team for the SAIA Code of Motor Salvage formulated Interim Guidelines to be followed and used by members and their salvage agents, going forward; until such time that a final resolution has been agreed with the Department of Transport.

These Interim Guidelines replaces any other previous methodologies used by respective insurers and their salvage agents to process motor salvage.

For more information contact Zakes Sondiyazi, SAIA Insurance Risks Manager: Zakes@saia.co.za