Depreciation relates to the wear and tear of vehicle parts based on the average life expectancy of that part as determined by the manufacturer. The difference between the cost of a replacement part and the remaining value in the damaged part is referred to as depreciation. Depreciation applies to all estimates regardless of customer responsibility or percentage of fault.
Depreciation applies to:
mechanical parts
tires
electronic components
electronic sound and communication equipment
convertible tops
complete repaints, and
major mechanical operations in which labour makes up a large portion of the total cost (e.g., engine rebuilds)
Participants must identify when a part requires depreciation and may contact ICBC to assist in determining the amount to be applied. ICBC will contact the customer to discuss the amounts. Collision Repair Program Guide (icbc.com)
When depreciation applies, the participant will note the claim in messages and flag the estimate Requires Review.
Threshold
The collision repair program participant must resubmit the revised estimate to ICBC for reassessment of the total depreciation, if additional parts are added during a supplement.
When depreciation applies, the repairs cannot proceed if:
there is a cumulative actual cash value exceeding 80%
the claim is a hit and run, or
the estimating system or participant flagged the vehicle as a potential total loss, which requires review due to
unrelated damage, or
damage inconsistent with assignment notes.
*Note: the participant cannot replace the part(s) for review until resolved by ICBC.
See the full Policy on depreciation, how to apply Depreciation (icbc.com)and the exemptions, and the Collision Repair Program participant depreciation application process (icbc.com)in the MD Claims Procedures.
Tip of the Month
Commonly back-ordered parts have had a significant impact on the industry because of major shipment delays and supply issues. It is also important to note that back-ordered parts can affect the vehicle reparability when combined with the increased rental costs due to these lengthy parts delays. It is important that our business partners provide notice to ICBC when they are aware of back-ordered parts, so that the most economical repair decision can be determined up front.
When you have been advised of a back-ordered part from the manufacturer, and the anticipated delay will not affect reparability and/or work stoppage, please add a note in the messages of Mitchell Connect with the details of the back order and add the pre-stored line remark "BACK-ORDERED PART NOT INSTALLED" to the applicable line entry. For more details on Managing back-ordered parts for a collision repair program facility (icbc.com), please see the MD Claims Procedures.
When you have been advised of a back-ordered part that will affect the reparability of the vehicle, such as when the part has no ETA or anticipated delay will result in work-stoppage, please notify ICBC immediately by e-mailing [email protected] with the details as outlined in the Collision Repair Program Guide (icbc.com):
The anticipated length of delay
All back-ordered part(s) as identified on the estimate
Date all work stopped
Date of expected delivery of part, and
Dealer invoice supporting part ordered and anticipated delivery dates
ICBC must be notified of back-ordered parts that will affect the reparability of the vehicle as soon as the shop is made aware of the back order and prior to commencing repairs, when appropriate.
Tip of the Month
Vehicles Not Founds in the Mitchell Database
When preparing an estimate for a vehicle model not found in the MCE database, the closest model to the vehicle from the same manufacturer with similarities in panel size should be used. The following scenarios provide examples of how to proceed with the estimate:
Current Model Year Not in Database
Select the prior model year. Use the available body and refinish labour times.
This will only apply if the body style has not changed from the previous model year.
Part numbers and prices will need to be entered manually to match the correct vehicle.
Brand New Vehicle Model Not in Database
Use a similar, comparable vehicle. Use the available body and refinish labour times.
Part numbers and prices will need to be entered manually to match the correct vehicle
No Vehicle Information in Database (such as Canadian market vehicles i.e. Kia Rondo)
Use a similar, comparable vehicle. Use the available body and refinish labour times.
Part numbers and prices will need to be entered manually to match the correct vehicle
Vehicles Where the VIN Does Not Decode
In some cases, such as with Classic cars, no vehicle information will be available and there will not be a suitable comparable vehicle.
Contact Mitchell Editorial at 1-800-448-4401 to obtain vehicle data information, if available.
If no data information is available, use judgment labour times for R&I's and refer to the ICBC Paint Chart for refinish labour.
Part numbers and prices will need to be entered manually
In all above cases, an estimate report remark is required indicating the accurate model vehicle and year. Select “Requires Review" and note the sources used to write the estimate.
Note: If a similar model of vehicle is not available, refer to the paint chart for ICBC refinish times not in the database. Ensure that the correct chart is used, as there are different charts for cars, pick-up trucks and vans.
Please refer to Policy on painting a vehicle not found in the Mitchell database (icbc.com).
Tip of the Month
Photo Documentation
Photo image requirements must meet standards regarding content and clarity to ensure that estimators can assess damage reports accurately and make informed decisions to approve or decline repairs. Participants must take close-up images of all damaged areas for comprehensive and hit and run claims. ICBC recommends a resolution of 1280 x 960. Images taken at a higher resolution can take longer to convert and load into Mitchell Connect.
Digital images should:
be clear and in focus
have notes to identify the content of the image and/or unrelated damage
always include the odometer and VIN
confirm vehicle damage for each repair estimate is consistent with the loss being claimed
confirm the dimensions of digital images with a yardstick to show measurements effectively for all collision claims
record any unrelated damage, and
support requests for additional parts and labour on supplements
Please refer to Section 8.8 Digital Images in the Collision Repair Program Guide (icbc.com) and the Take Digital Images section of the Material damage procedures (icbc.com)for the complete required specifications and minimum images required on a claim.
Tip of the Month
Total Loss Indicator
When an estimate/supplement has reached or exceeded ICBC's total loss threshold, Participants must select “Convert to Total Loss" in Mitchell Estimating. If the Participant cannot complete an accurate estimate due to unknown or hidden damage and believes total repairs may exceed the 80% ACV threshold, or 60% if the vehicle has rebuilt status, the Participant should flag the estimate for review with appropriate supporting information. Once an estimate or supplement has triggered the total loss indicator, it must be left as flagged.
Note: If the vehicle has rebuilt status, it will be displayed in the Adjuster Notes section located in Messages in Mitchell Connect. Please refer to sections 8.19. Total Loss and 9.21. Holds Based on Repair/Total Loss Decisions of the Collision Repair Program Guide (icbc.com).
If the customer has the NVR+ Vehicle Replacement policy coverage, the Participant must ensure that ICBC is notified when the estimate total exceeds 40% of the ACV by selecting “Requires Review." See section 8.20. Replacement Cost Policy, New Vehicle Replacement Plus (NVR+).
Tip of the Month
Sublet Frame Repairs
Agreed repair time
When a collision repair facility is subletting frame repair time certain conditions apply regarding repair guides, tools, equipment, and charge out rates.
To diagnose the appropriate ICBC agreed repair time, repair facilities must have available on site and use:
current dimensional guides appropriate to the vehicle being repaired, and
appropriate tools and equipment.
For a complete list of the minimum requirements for a collision repair facility to participate in the Collision Repair Program see Collision repair facility equipment and training requirements (icbc.com)
Frame repair charge out rates
Frame repairs are paid at the Collision Repair Participant's prevailing agreed charge out rates, including material.
Sublet frame repair charge out rate
If a collision repair facility sublets the frame repairs, ICBC does not pay:
any markup over the repair facility's own prevailing charge out rate,
towing charges between collision repair facility and sublet frame shops.
To read this policy in the MD Claims Procedures see Sublet frame repairs (icbc.com)
M&S & Winter/Snow Tire Customer Upgrade requests
Effective October 1 to March 31 or October 1 to April 30, certain BC highways require all vehicles be equipped with either Winter/Snow Tires, M&S Tires or chains to travel. Some of ICBC's preferred Rental Suppliers' vehicles come equipped with M&S Tires and others come equipped with Winter/Snow Tires.
ICBC Rental Suppliers WILL provide Winter/Snow Tires when the customer's vehicle is equipped with them. There is an additional daily charge billed through the customer's coverage. ($10-12/day for ICBC preferred vendors; $0-$15/day for non-preferred vendors).
If your customer is requesting snow tires at the time of booking the appointment and their vehicle is equipped with snow tires, you can add this to the CL113 F/H advising the customer has requested snow tires.
Note: In an effort to streamline this process, ICBC will no longer request a picture of customers' snow tires.
Limitation period
ICBC claims are subject to a two year limitation period from the date of loss. Participants must know what to do when presented with a claim that is close to or beyond the end of that period.
Claims close to the limit
When a customer presents a repair facility with a claim that is nearing, or beyond, the end of the two year limitation period, the following applies:
Time period | Participant | ICBC |
|---|---|---|
Sufficient time remains within the two year limitation period for the participant to complete all repairs and submit the estimate for payment | Completes the repairs | Handles this claim as usual. |
It is uncertain whether the participant can complete the repairs and submit the estimate within the two year limitation period | Contacts ICBC estimating for collision claims or Provincial Glass Operations (PGO) for glass only claims for instructions | ICBC estimating or PGO reviews the claim details and determines whether repairs can be completed and notes the claim accordingly. Note: The manager may provide an extension, up to 30 days. If participant fails to contact ICBC estimating or PGO, an estimate or invoice submitted for payment after the two year limitation period is reviewed for potential non-payment. |
The claim is over two years old, that is outside the two year limitation period | Contacts ICBC estimating for collision claims or PGO for glass only claims for instructions | May not pay the estimate or invoice submitted for payment after the two year limitation period. |
When the claim is over two years old and no estimate has been submitted, refer the customer to their claims adjuster. Please see the Repair estimate two year limitation period (icbc.com) in the Claims Procedures.
Tip of the Month
Alternative Estimating
When a Collision Repair Participant has a vehicle where the estimated total repair cost is close to or marginally exceeds the maximum repair cost of the vehicle, ICBC may approve to apply alternative estimating. The prerequisites include:
the customer requests repairs
safety of the repaired vehicle will not be compromised and
the repair amount paid by ICBC is the only contribution to the repair cost
The repair facility cannot alter the original estimate or supplement, without receiving prior approval from the respective estimating service manager and customer, regarding the total loss notification.
Alternative estimating procedures include:
reduced labour rates (do not set below base rate)
discounted part prices (do not adjust below shop's cost)
remove or reduced Alternative Transportation Service prices or
reduced cost, only if a touch-up and polish for a minor chip or scratch is needed, that does not affect the overall appearance of the vehicle (at the discretion of ICBC)
The repair participant will be required to flag the estimate Requires Review in order to initiate the alternative estimating process.
Important: The estimating services manager must approve the alternative estimate. The alternative estimating can only be between ICBC and a participant in the Collision Repair Program who is in good standing.
Please see the complete policy and procedure here Apply alternative estimating (icbc.com).
Tip of the Month
Photo image requirements must meet standards regarding content and clarity to ensure that estimators can assess damage reports accurately and make informed decisions to approve or decline repairs. Participants must take close-up images of all damaged areas for comprehensive and hit and run claims. ICBC recommends a resolution of 1280 x 960. Images taken at a higher resolution can take longer to convert and load into Mitchell Connect.
Digital images should
be clear and in focus
have notes to identify the content of the image and/or unrelated damage
always include the odometer and VIN
confirm vehicle damage for each repair estimate is consistent with the loss being claimed
confirm the dimensions of digital images with a yardstick to show measurements effectively for all collision claims
record any unrelated damage, and
support requests for additional parts and labour on supplements
Please refer to Section 8.8 Digital Images in the Collision Repair Program Guide (icbc.com) and the Take Digital Images section of the Material damage procedures (icbc.com) for the complete required specifications and minimum images required on a claim. We have provided some examples of photos below.
4 corner photos should be taken at a perspective that shows the full side of the vehicle from bumper to bumper including the license plate.
Tip of the Month
Commonly back-ordered parts have had a significant impact on the industry because of major shipment delays and supply issues. It is also important to note that back-ordered parts can affect the vehicle reparability when combined with the increased rental costs due to these lengthy parts delays. It is important that our business partners provide immediate notice to ICBC when they are aware of back-ordered parts so that the most economical repair decision can be determined up front.
When the vehicle is repairable and the shop is unable to continue with repairs until the back-ordered parts have arrived, the shop may submit a request for ATS reimbursement ($30/day) through the CL113D notification. Please ensure you have followed both procedures outlined in the Collision Repair Program Guide:
9.20. Work Stoppage Due to Original Equipment (OE) Part(s) on Back-Order
When a Participant is advised of a back-order on an OE part that may cause all work on a vehicle to stop, they should, as soon as possible, consider the following options:
temporary repair of damaged part to facilitate continuation of the repair process
use of alternative parts
repairing rather than replacing the part, and
completing the repair(s) sufficient to make the vehicle roadworthy and arranging for the customer to return at a later date to have the part installed.
If any of these options are considered viable, the Participant must contact ICBC Provincial Express to discuss next steps. If none of the above options are viable, the Participant must advise ICBC Provincial Express of the anticipated length of delay. Participants should document details regarding the backorder part including:
back-ordered part(s) identified on estimate
date all work stopped entered in the “Messages" section of Mitchell Connect
date of expected delivery of part, and
dealer invoice supporting part ordered and anticipated delivery dates.
9.20.1. Applicable ATS Courtesy Vehicle Allowance
If all work is stopped on the vehicle for a period of three consecutive business days due to a backordered OE part, the Participant may invoice ICBC at the courtesy vehicle daily allowance during the work stoppage, commencing on the fourth business day until the part is delivered, provided the customer remains in an ATS courtesy vehicle.
The Participant must complete the applicable section of the CL113D related to OE back-ordered parts. ICBC does not pay the courtesy vehicle allowance unless the Participant notifies ICBC at the time they first become aware of the back-order part that may cause work stoppage in excess of three days. Participants may be required to submit parts invoice(s) to ICBC to verify the back-ordered parts delay.
ICBC has a feature on the Material Damage Claims Procedure site called Change Alerts. These are updates to policy and procedure, such as ADAS calibration allowances and Feather, Prime & Block allowances.
Accessing the site is located in the Material Damage section of the ICBC Business Partners Page or by clicking on this link: Material damage procedures (icbc.com). Once you click on the link, you must agree to continue.
Click on the title of the Change Alert to read the full details of the update. Ensure you are checking here frequently for the most current updates and changes
