|
Motor Vehicle parts failure or dealer error |
Knowledge = Savings
Modern motor engines are sophisticated creations of engineering ingenuity, designed to travel many hundreds of thousands of kilometres but ultimately only with adherence to prescribed maintenance standards. Those factors may include petrol or diesel specifications, specific oils to be used or other guidelines set down for servicing or the like.
Our key motor vehicle claims exponent was challenged with a new claim mid 2012. Following a standard vehicle service the vehicle subsequently failed four months after the service. At the time it was deemed by the servicing franchise dealer the failure was due to a part failure - albeit a critical part. “The diesel particulate (exhaust) filter is fitted to all diesel engines and is an automatic system which "burns out" soot and other contaminants close to the exhaust manifold when a vehicle is operated through the exhaust system”.
Our Adjust NZ member was introduced to the claim a week after the failure was notified but on the basis of adjusting the claim for part replacement. The initial repairer (franchise dealer) had simply addressed the issue as a simple parts replacement.
“The key to this claim is that the service manager had no idea on how to repair the item, just merely replace it. As detailed, the replacement of the particulate filter was in excess of $10,000.We discussed this with the service manager who said that he could see no way of repairing the filter and did not want to have a bar of moving to any repair method. We encouraged the service manager to attempt a repair, however the dealer would not.”
In depth knowledge and subsequent evaluation by our AdjustNZ member, from a distance of some 1200km quickly established the cause to be other than straights parts failure. In a sophisticated engine with little over 100,000km the potential cost factor for the insurer was significant. Our Adjuster established that the real issue lay in the fact that wrong oil was introduced to the vehicle in its regular servicing - by the franchise dealer.They arranged for the part to be moved to an engineer they established could identify the issue (a fact the franchise dealer were not even aware of) and those investigations confirmed that the engine failure was totally due to incorrect oil being supplied to the vehicle - by the franchise dealer.
“The particulate filter was cleaned and installed onto a donor vehicle and operated. The repaired particulate filter performed better than the original on the donor vehicle and when shipped back, the third party vehicle operated in a more than satisfactory manner”.
Quickly, through this thorough Adjusting work it was established that loss was totally associated with incorrect work techniques (wrong oil applied). This result has led to an advisory being established across the country for the vehicles’ brand dealerships as the practising dealer had no knowledge of the remedial procedure. Their work practices have been changed accordingly. “The concern is that trades throughout the country do not look any further than outside the replacement of something that breaks down. It was only with an older/more repairs experienced tradesman the reinstatement was able to be completed”.
Outcome: A saving of over 90% of initial estimate to replace equipment (equates to well over $10,000) but only occasioned by experience and vigilance of our Adjust NZ member. As a result greater knowledge by the particular franchise network of the potential outcomes of similar issues has accrued – as with outcomes of servicing with incorrect oil! Perhaps the benefit to the insurance industry can only be measured in future savings of many hundreds of thousands of $$. Adjust NZ – let us go the extra mile for you!
|
|
|
