Industry News
Allianz Cornhill extends used repair parts scheme
16th April 2007
The insurer Allianz Cornhill says motorists have given positive feedback to a pilot scheme to test the use of recycled parts in repairing vehicles. Since October 2006 policyholders from the public and commercial sectors who own vehicles of five years and older have been invited to consider the use of recycled parts to repair their vehicles. As well as reducing the environmental impact of vehicle repair, Allianz Cornhill has looked at whether the scheme helps to reduce claim costs.
Policyholders who took part in the pilot gave positive feedback to the project, which in many meant that their vehicle was not a total loss as it would have been with more expensive new repair parts. The mostly cosmetic recycled parts used were not structural or subject to wear and did not have a safety function such as brake and steering components.
Allianz Cornhill Motor Damage Claims Manager Dane Loosley said that the pilot scheme also proved that recycled parts can be cost effective for both the repairer and insurer. For a £1,000 claim, on average, £240 was saved by using recycled parts. “Take up of the offer to use recycled parts was around 25%, but when there was a possibility of a total loss, this increased to 80%,” said Loosley.
(Auto Body Projects)
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