Tony Simpson, Managing Director at AGS Claims Consultants, laments the erosion of professional standards in motor claims assessment. Over three decades in the field reveal a concerning trend: expedited, image-based assessments favouring quantity over accuracy. This compromise leads to inflated repair costs, unjustifiable total losses, and a loss of consumer trust, signalling a dire need for corrective action and renewed professional integrity.
It is with a heavy heart and sadness that I pen this article.
Having been a practising Automobile Engineer Assessor now for over 35 years, firstly as an Insurance Company Staff Engineer and secondly as an Independent Consultant Engineer and an IAEA member for over 30 years, I have always been incredibly proud of our profession, holding tremendous respect for the achievements of our Institute and its members.
Over the last ten years, we have seen the gradual demise and erosion of the structure of the profession, with the implementation of remote desktop assessment and delegated authority of claims to both the repair industry and third party claims operations.
Having read the excellent article by Andrew Marsh in the July/August Assessor magazine with his observation that insurance companies, having, in some cases, eliminated their own dedicated engineer functions in favour of third party estimate verification services to process claims in an attempt to reduce operational costs and streamline the claims function. This has led to what appears to be a greater commercial consideration in the expedition and processing of motor claims, where quantity and volumes of claims processes far outweigh the quality and accuracy of the individual motor claim assessment and its outcome.
It’s inevitable that the remote desktop engineer is at a disadvantage in processing such claims in the absence, in some cases, of a repair estimate and an understanding and knowledge of the local repair market, together with relying on images supplied by the vehicle owners. With the commercial and operational pressures in dealing with a pre-determined number of cases within pre-determined time restraints and framework, ultimately, the easy option can be taken to resolve the case as quickly as possible.
From my own experience and that of my fellow independent engineer colleagues who work in the field, we have seen many repairable vehicles being subject to a total loss settlement due to what must be described as inaccurate and significantly exaggerated repair specifications and reserves. This is predominantly apparent with vehicles over four years old and where the customer has not obtained a repair estimate. In far too many instances, the repair costs are substantially overstated and exaggerated to the point that the damage detailed in the engineer’s report is not even in some cases present or exists.
This is an alarming trend, with the ultimate loser being the consumer who is left bewildered as to why their car has been dealt with as a total loss without any form of consultation or discussion. In the majority of cases, the vehicle is still roadworthy and in daily use. I was brought up on the ethos of professionalism and accurate vehicle assessment. Never assume damage that you cannot see or justify.
Consumer confidence and trust have been affected in this form of claims process, which has led to reduced confidence in their Insurance provider.
To illustrate this point, I was contacted by a customer who had her 2005 Ford Fiesta Zetec total loss by her insurer following an accident at a set of traffic lights when her stationary vehicle was impacted in the rear by a third party. Both vehicles being insured by two of the major British Insurers, with no dispute over liability.
The Ford Fiesta being in very good condition for its age, and as you can see from the images in this article, it was still roadworthy and safe to drive following the accident. This was evidently a very light impact into the rear, resulting in a cracked rear bumper cover, a small dent to the lower tailgate, and a slight indentation to the rear panel.
Images were provided to the third party claims engineering function, with the desktop engineer building a repair specification from the images attached of a total repair of £3,413.92p.
The vehicle’s value was just over £2,000; the vehicle was deemed beyond economical repair. The customer was shocked at the cost advised and that the vehicle was considered beyond economical repair, especially because she was still using the vehicle and, as such, decided to retain the damaged vehicle. She commissioned her own retail repair with a local Accident Repair Centre, which replaced the rear bumper cover and support beam and repaired the rear panel and lower tailgate section. The total repair cost, including labour, parts, paint, material and VAT, came to £973.92p. Less than 50% of the PAV. The repair duration being four days. From the images attached and from my examination of the vehicle, I just cannot reconcile how the remote engineer could assess this repair to equate to over £3,000, which is over 2.5 times more than the actual repair costs necessary to return the vehicle to its pre-accident condition.
This alarming growing trend, without doubt, is a very sad reflection on our profession and calls into question the viability and accuracy of desktop Inspections, which is leading to significant financial leakage and reputational damage to the Insurance Industry. It also questions the methodology and application of good engineering practice being applied in such cases by a VDA-certified engineer. This is leading to the erosion of Engineering standards and to the detriment of our once highly respected Profession.
Unless this issue is acknowledged and identified by the relevant parties and addressed accordingly, it will only get worse and out of control. It is possible that corrective action can be adopted with the right training and education, which would provide precise and professional claims outcomes and save considerable financial loss to all stakeholders in the claims process and greater consumer confidence.
If you would like to contact Tony, please email him at tony@agsclaimsconsultants.co.uk
