The Association of British Insurers (ABI) has issued an updated version of its Salvage Code of Practice, aimed at aligning the voluntary guidance with developments in modern vehicle technologies.
The code outlines procedures for insurers and salvage operators on how to assess and categorise written-off vehicles. It is designed to help prevent unsafe vehicles or components from re-entering circulation and being used on public roads.
Following consultation with a range of industry bodies – including insurers, the Motor Insurers’ Bureau (MIB), and Thatcham Research – the revised code introduces updates to vehicle classification criteria and dispute resolution processes. The changes are intended to reflect the impact of new technology on vehicle construction, performance, and repairability.
The updated Salvage Code of Practice now brings electric and hybrid vehicles within its guidance, and considers megacasting, reusable parts, and other advanced vehicle construction methods. It also features improved wording for different vehicle types, such as Heavy Goods Vehicles and motorcycles. The code was last updated in 2019.
The ABI’s update follows collaboration with a broad spectrum of stakeholders beyond the insurance sector. Vehicle manufacturers, government agencies, and representatives from the salvage and repair industries all contributed to the revised code.
Mark Shepherd (pictured above), head of general insurance policy at the ABI, said the salvage code provides transparency to consumers when considering the history of vehicles for sale.
“By ensuring that consumers have transparency about the history of vehicles they are considering buying, the salvage code is a great example of the insurance industry working together to make the UK’s roads safer. It’s important the code moves with the times, and this update reflects the increasing sophistication of our vehicles, including new powertrains and construction methods,” he said.
The updated code follows an important development for the association, with David Otudeko having recently been appointed as director of regulation at the ABI.
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