Update on Repairable Write-Offs

In July last year we had reported that the NSW Government was banning the registration of repairable write offs to clamp down on car rebirthing (read here).

Common sense has prevailed, and a series of exemptions have been made to allow repairable write offs to be repaired & re-registered.

Background;

Vehicles in NSW Written Off from 31st January 2011 are classified as statutory write offs. The consequence of this is that the vehicle cannot be registered in Australia, and can only be used for parts or scrap metal.

This has a huge impact on the value of any car or motorbike, and would impact our clients who repossess motor vehicles that are classified as statutory write offs.

To qualify for an exemption,  the vehicle must be able to be repaired to legislated vehicle safety standards.

The exemption Categories Include;

• High market value
• Hail damaged
• Low production run
• First or last in a production run or model range
• Personally imported
• Individually constructed
• Inherited
• Owned for 5 years or more by the registered operator
• Registered operator is a member of a recognised enthusiasts club for vehicles of that type

In order to repair a repairable write off you must follow the below as prescribed by the RTA;

"The RTA issues the 'Authorisation to repair a written-off vehicle' if the vehicle:

• Is repaired according to manufactures guidelines (or to recognised industry standards if there are no manufacturers guidelines) as far as they are relevant to the structural integrity and safety of the vehicle.
• Repairs must be certified by a person licensed by NSW Fair Trading as being an authorised person.

The following steps and flow chart, detail the new process vehicle owners must follow regarding the registration of written-off vehicles recorded on the Written-Off Vehicle Register (WOVR) from 31 January 2011.

1. The Insurer assesses the damaged vehicle and, if requested, gives a 'Declaration of Vehicle Damage' to the registered operator or owner.
2. The registered operator or owner sends an Application to repair a written-off vehicle to the RTA.
3. If the RTA issues an Authorisation to repair, then the vehicle must be repaired according to legislated safety standards.
4. The repairs must be certified by a repairer holding an appropriate class of licence issued by NSW Fair Trading.
5. The vehicle must pass two inspections - one for mechanical safety and one for identity validation.
6. The vehicle owner or operator can apply to the RTA to register the vehicle."

Further information can be found on the RTA's website here.