Brokers are pleased by the Insurance Bureau of Canada’s move to compile a database of flooded vehicles that have been reported and branded as non-repairable due to flooding across southern Alberta and the Greater Toronto Area – so long as the information doesn’t become dispersed among several websites.
“I really applaud this effort by the IBC to take the initiative and create this databank,” says Dan Danyluk, chief executive officer of the Insurance Brokers Association of Canada. “But we need to ensure the number of data banks is limited; the last thing we need is one more data bank. We want to make sure there is clarity, and no information is misunderstood or lost.”
Severe weather events, such as the heavy rainfall and flooding that affected southern Alberta and the GTA just recently, are getting more intense and leaving behind scores of flood-damaged vehicles. With water-damaged electronic components, potential mould and other issues, flooded vehicles are unsafe and are not legally allowed to be placed on the road, says a member of IBC’s investigative services unit.
“In the aftermath of a flooding event, fraudsters may attempt to cleanup and resell storm-damaged vehicles to unsuspecting consumers,” says Rick Dubin, vice president of Investigative Services at IBC. “This new free VIN Verify Service on ibc.ca helps to protect consumers by allowing them to check whether a vehicle has been reported as flood damaged and non-repairable by participating IBC member insurance companies.”
IBC's VIN Verify Service can be accessed by clicking here.
The reselling of flood-damaged vehicles occurs frequently after severe weather events. Brokers should always encourage clients who are considering a private purchase of a used vehicle to do a search of the vehicle through IBC's VIN verify service, as well as order a full vehicle history search and have the vehicle fully inspected by a known mechanic to ensure that it is not a flood related or stolen vehicle.
“Canadians should be cautious when a deal seems too good to be true and should report any suspicious vehicles to IBC through our tips reporting program at 1-877-IBC-TIPS or through the web at www.ibc.ca,” adds Dubin.
One vehicle brokers are keeping a keen eye out for is the Ferrari featured on the news that was abandoned in downtown Toronto during the flood, says Danyluk. “Everybody is going to be looking for that Ferrari,” Danyluk told InsuranceBusiness.ca. “But it is still early days. I haven’t heard a lot yet about these flood-damaged vehicles.”
