Aviva - chief exec Mark Wilson comments on CMA report: "failed to grasp the key issues affecting UK motorists"

Written by Mark Wilson, group chief executive of Aviva and published in Saturday's Telegraph:

The Competition and Markets Authority (CMA) failed to deliver badly needed reforms to the motor insurance market this week following a two year investigation.

The remedial actions contained in their final report amount to very little in meaningful change.

The CMA missed the chance to tackle the fundamental issues affecting UK motorists and the market – with its millions of pounds of unnecessary costs – rolls forward.

Sadly, the CMA investigation had a flat tyre before it hit the road.

The review failed to grasp the key issues affecting UK motorists.

If we look at the major challenges facing the market – whiplash claims, fraud and escalating legal costs, to name a few – the scope of the investigation was inadequate.
This led them to ineffective remedies, some of which they discovered they did not have the authority to implement; inevitably the UK's motorists were left feeling underwhelmed.

I believe the CMA should have been able to review the motor claims process as a whole, a system of spiralling costs which prioritises financial compensation and encourages exaggerated and opportunistic personal injury claims.

Let's call this culture of exaggerated claims what it is. This is fraud. It is not a victimless crime. The cost of motor insurance for law-abiding motorists is driven up as a result.

The Government has shown some appetite for starting to deal with the problems of fraud, whiplash and rogue claims management companies and that's to be commended.
Motor insurance premiums have fallen sharply - down 14 per cent since 2012 – a welcome relief when household budgets have been under so much pressure. But we must stop nibbling at the edges and start taking real bites out of the challenges facing the motor insurance market.

Aviva has put forward wide ranging yet clear and achievable reforms to cut annual premiums by a further £50, equivalent to another 14pc on average for every driver. We want to see a legal system and laws which lead to long-lasting and meaningful reductions in the price of motor insurance.

The CMA failed to address referral fees in car hire and repair claims.

Aviva believes all forms of referral fees should be banned.

These are commonly paid in exchange for details about accidents so that the car hire firm, garage or recovery agent can attract work associated with the claim.
They add a significant level of cost into motor claims, but from a customer's point of view, they add nothing.

Third parties such as some claims management companies see motor claims as an opportunity to profit at the customer's expense. They line the pockets of companies who profit from motor claims, adding around £200 million, or £7 per policy, to the cost of motor insurance, with no tangible benefit to the customer. This is not equitable for consumers and it must change.

Secondly, we need to put the brakes on the UKs compensation culture. Weak regulation of motor claims and poor industry practice has encouraged high claims costs and fraud – much of it from organised crime. The bottom line is increased costs to consumers. Collectively, insurers, personal injury lawyers, claims management companies, the regulator and Government must sort this out.

Last year 94pc of all personal injury motor claims paid by Aviva in the UK were for minor injuries such as short-term whiplash. Compare this to France where whiplash accounts for only 3% of motor injury claims in France.
The UK does not have the weakest necks in Europe. But it does have weak laws and regulations governing personal injury claims and rogue claims management companies.

Aviva recommends reforming the current system which pays cash compensation for minor whiplash injuries, to one that purely focuses on treating victims' injuries and helps them return to health. Whiplash is a genuine injury which can cause significant pain and discomfort. So we want to put care, not cash, at the heart of the injury claims process.

Treating short term minor whiplash injuries with rehabilitation and care instead of cash would remove £900m from claims costs, saving motorists around £32 on the average annual premium.

Finally, if we are serious about tackling this issue, we must look at the legal system which allows exaggerated claims to flourish.

For every £1 Aviva pays out in personal injury compensation in the UK, another 77p in legal fees goes to lawyers. Many claims are straight-forward cases for minor injuries where lawyers are not necessary - restricting them to cases where their expertise is needed could save £300m, or £11 per policy.

Aviva will continue to make the case for change. We are building cross industry consensus. Customers, brokers and insurers want to see the cost of motor insurance reduced.

The CMA had an opportunity to fix the system and it didn't. The responsibility now passes to insurers and the Government.
We cannot afford to waste more time talking about the problems instead of tackling them. Now is the time to overhaul the system to put motorists' interests first.

Toyota - collaborating with Panasonic to allow car owners to control their home appliances from their car

We've all had those "oh-no" moments after leaving home: the washing machine not switched on, the TV not set to record tonight's movie, the air conditioning not primed to cool the house down ready for your return.

Toyota and Panasonic are working together on a new cloud-based telematics service that will make life easier and less stressful by letting people keep tabs on and operate their home appliances from the wheel of their car.

The technology is being presented by Toyota at the Smart Community Japan 2014 exhibition in Tokyo this month, prior to the new service being launched on the market as soon as the second half of this year.

The concept is all part of Toyota's on-going work to make mobility smarter, more convenient and more comfortable, and to increase the value cars can add to people's lives.

It makes use of the existing cloud-based Toyota Smart Center, which already links people, cars and homes around the world, and the Panasonic home appliance control application.

The Panasonic Corporation is a pioneer in smart home appliances, such as televisions, video equipment and air conditioners, supporting its mission for A Better Life, A Better World for all its customers.
The company is working to create new smart homes that are environmentally efficient and network-connected to support modern lifestyles.

The two companies agreed a year ago to co-develop services for next-generation telematics services that link cars to home appliances.

Since then they have succeeded in developing an interface to link their respective cloud services, and laid the groundwork for new services, including applications for in-car operation and status-checking of home appliances.
For example, an application linked to a vehicle's GPS data can remind the user to turn off the air conditioning before leaving home, and enable them to turn it on remotely before returning.

In the future, Toyota and Panasonic will bring their individual strengths to joint development of smarter mobility, using cloud-based services to link people, cars, homes and communities.

Motorists face a £10,000 maximum fine for speeding on the motorway

The Government is planning to empower magistrates to impose fines that are set to rise dramatically, potentially quadrupling the maximum fine for speeding on England and Wales motorways to £10,000.

Under the planned reforms, maximum fines for speeding on dual carriageways and for using a mobile phone while driving will also quadruple, going from £1,000 to £4,000. Driving without insurance could also see increases.

Any new legislation would first have to be debated in Parliament but there is no current timetable for any such discussion.

The planned punishments were immediately condemned as "disproportionate and draconian" by Rupert Lipton, the director of the National Motorists Action Group.

He claimed that fear of being hit with the maximum fine would stop innocent drivers from challenging unfair speeding tickets.

"If you wish to challenge you can currently face six points and a £1,000 fine on non-motorway roads or £2,500 on the motorway. Raising it four-fold is clearly an over-reaction.

"The threat and the fear of a disproportionate fine would deter many from trying to seek justice."

Mr Lipton was backed by Edmund King, the president of the Automobile Association, who said: "We would not condone excessive speeding in any way, but fines have to be proportionate. One has to question whether increasing the fines four-fold is proportionate. It probably is not.

"If we had more cops in cars on the motorway that would be a much more effective deterrent."

RAC Foundation director Professor Stephen Glaister also questioned the proposals.Mr Glaister said: "People who break the law should bear the consequences but this seems such a wholesale change to the system so you have to ask what was going so badly wrong before.

"Ironically we know that speeding offences have declined over recent years and just last week the Department for Transport confirmed that, even after taking congestion out of the equation, recorded traffic speeds have been dropping for a decade on all types of roads."

The Ministry of Justice said custody would "continue to be used for serious offenders and fines will not become an alternative for those who would otherwise be sent to custody".

But Jeremy Wright, the justice minister, said: "Financial penalties can be an effective way of punishing criminals and deterring them from further offending.

"Magistrates are the cornerstone of our justice system and these changes will provide them with greater powers to deal with the day-to-day offences that impact their local communities."

The proposed changes would see:

.  The Level 1 fine maximum increase from £200 to £800. Offences which may be dealt with by a Level 1 fine include unauthorised cycle racing on public ways

.  Level 2 increases from £500 to £2,000. Offences include driving a motor cycle without a protective helmet

.  Level 3 increases from £1,000 to £4,000. Offences include the sale of alcohol to a drunk person or being drunk and disorderly in a public place

.  Level 4 increases from £2,500 to £10,000. Offences include speeding on the motorway

Magistrate fines collected at the end of 2012/13 reached a record high of £284m and continued to rise during the last financial year, the Ministry of Justice added.

Motorworld Car Bodyshop Completes the 1960's Morris Minor Project

Motorworld Car Bodyshop was proud to present a creation that took over two years to complete - one 1960's Morris Minor featuring 2 litre twin cam engine. 

Was painted by our top painter Luke Hardy. Luke explains that the paint process starts with painting the car silver then many coats of transparent candy red, which allows the silver to shine through, which is then protected by an ultra violet additive, then a 7 hour process of flatting and polishing giving the car its super shiny paint finish.

Nissan - trialling self-cleaning paint

.  Nissan has unveiled its nanopaint technology that stops a car getting dirty

.  First car to trial the paint, which costs £450 ($750), will be the Nissan Note

.  The 'super-hydrophobic' and 'oleophobic' paint repels water and oils

.  Nissan says the technology 'could make car washes obsolete'

.  Watch 1min 8 sec video: www.dailymail.co.uk/video/sciencetech/video-1092163/Nissan-developed-self-cleaning-prototype-car.html

Japanese giant Nissan has developed the world's first 'self-cleaning car' which it predicts will make car-washing 'obsolete.'

Its UK engineers are testing innovative 'nano-paint technology' which repels dirt before it gets a chance to take hold on the paintwork. The coating is made by UltraTech International Inc

For drivers who would rather run a mile than wipe down their dirty vehicles with a sponge or wince at the high cost of a car-wash, it means salvation may soon be at hand.

It is set to be an option on future models but is being tested in Britain on the new Sunderland-built Nissan Note which went on sale in October priced from £12,100 to £17,100.

No price has yet been set but it is likely to be around £450 ($750) – or similar to a metallic paint option.

A Nissan spokesman said:

"The Nissan Note is first car to trial paint which could make car washes obsolete.

"Washing a car can be a chore - and a costly one at that. In response, Nissan has begun tests on innovative paint technology that repels mud, rain and everyday dirt, meaning drivers may never have to clean their car again."

Scientists have developed 'super-hydrophobic' and 'oleophobic' paint, which repels water and oils. It has been applied to the all-new Nissan Note supermini to create what it calls 'the world's first self-cleaning car'.

Nissan says it is the first carmaker to apply the trade-marked technology called Ultra-Ever Dry® on automotive bodywork and will be testing it 'in the real world' over the coming months at its European Technical Centre at Cranfield in Bedfordshire.

Explaining how the dirt-repellent coating works, a Nissan spokesman said: 'By creating a protective layer of air between the paint and environment, it effectively stops standing water and road spray from creating dirty marks on the car's surface.'

The Note already features a 'wash and blow dry' function on its rear view camera. This uses water and compressed air to automatically keep the lens free of dirt and ensure the Notes' safety sensors work in all conditions.

A spokesman said: 'So far, the coating has responded well to common use cases including rain, spray, frost, sleet and standing water.'

Chief marketing manager Geraldine Ingham said;

"The Nissan Note has been carefully engineered to take the stress out of customer driving and Nissan's engineers are constantly thinking of new ways to make families' lives easier.

'We are committed to addressing everyday problems our customers face and will always consider testing exciting, cutting edge technology like this incredible coating application."

High Court Judge refuses whiplash damages, describing Britain's compensation culture as a "national phenomenon"

A High Court Judge recently dismissed the claims of two women for whiplash as lies as he said Britain's compensation culture, which costs billions every year, is getting out of control.

Mr Justice Mostyn dismissed the claims as inaccurate and evasive, based on "an improper pecuniary motive," as he refused to grant damages to two women to "stem the tide" of fake insurance claims.

The women, both immigration officers, took at least a week to report any pain from the crash, described as a "little bump" by others. The court heard it took 18 days for her to complain to her GP about any pain, and Miss Hennessy waited a week before she went to her doctor to report any injury as a result of the impact.

Describing Britain's compensation culture is a "national phenomenon", Judge Mostyn said: "It is proper that I should go on to record that I do not accept the evidence of either of them, which I find to be inaccurate, evasive, partial and advanced for an improper pecuniary motive".

"This is yet a further example of the national phenomenon of false whiplash claims being made and it is in an attempt to stem the tide that I do not shrink from making firm adverse findings against them".

Mr Justice Mostyn said expert medical evidence which appeared to back up the accounts of both women was so similar it cast doubt on the professional objectivity of the expert. In identical terms, medical reports said both had suffered "nervous shock and psychological trauma" and endured "recurrent obtrusive memories of the accident and obsessional thoughts as to how she might have been seriously injured."

Both reports, prepared by a consultant physician, said the women had described their physical symptoms as "severe and constant", having taken many months to clear up.

However the court heard that there was no visible damage to the car after the accident and neither woman reported any injury at the time or asked for time off work.

Mr Justice Mostyn added: "Obviously it is, in terms of probability, almost inconceivable that each of these women would have suffered physically or mentally in precisely the same way."

The court heard Denise Withey, the driver of the Skoda Octavia, had described the accident as minor and her account was backed up by Raymond Stevens, a front seat passenger.

Miss Withey had taken photographs of the car which showed no damage was caused by the impact, and Mr Justice Mostyn described her as a "completely honest witness."

He said: "The contemporaneous material clearly shows that the impact was trivial; that no damage was caused to the vehicle; no hurt was suffered by the front passengers and that any hurt suffered by the rear passengers was trivial, of short duration and therefore non-compensable".

He said Miss Withey had no motive to lie and accepted she drove at low speed and the impact was minor.

He also accepted Miss McIntyre had immediately shouted about her neck and said she could make a compensation claim, and dismissed the cases of both women.

Paula McIntyre and Louise Hennessy made the claim against the Home Office after the work car they were in hit a bollard as it drove out of Seaforth Dock in Liverpool in October 2008.

After the crash a colleague heard Miss McIntyre say: "My neck, my neck, I can make a compensation claim."

http://www.motorworldarc.co.uk/news.asp

Bradford 'ghost broker' jailed for fraud by false representation and forgery

Atique Khan, a ghost broker, based from Bradford, has been jailed for promoting invalid car insurance to motorists across the city.

Khan, 33, posed as motor broker and for 5 months to December 2011, when he defrauded both First Central and his clientele - selling false policies to over fifty drivers.

He obtained true policies from First Central, by delivering the insurer with false information and forged no claims paperwork to get premiums at a cheaper price tag.

He then charged drivers more than the premium, plus a managing fee, for insurance that was immediately invalid due to the misinformation.

The scam was exposed in January 2012 when Initial Central discovered all of the policies incorporated identical email addresses, and referred the situation to the City of London Police Insurance Fraud Enforcement Department (IFED), which launched a criminal investigation.

Khan was arrested at his home in the Queensbury district of Bradford, in which officers seized numerous insurance documents, £1,000 in cash, a computer, laptop, 2 iPads and many mobile phones, on which forged no claims documents were found.

In court in March, Khan pleaded guilty to 5 counts of fraud by false representation, 14 counts of utilizing a forged article and one particular count of possession of criminal residence, and he was this morning jailed for 12 months.

DS Mark Forster, who led the IFED investigation, stated: "Khan devised a car insurance scam that saw him ruthlessly target members of his neighbourhood to make thousands of pounds.

"He left his victims unknowingly out on the street with no insurance, exposing them and other drivers to risk and economic loss, but now the court has ensured he will pay out the cost for his fraud."

http://www.motorworldarc.co.uk/news.asp

Motorists unhappy with pothole performance

Research conducted by the Institute of Advanced Motorists (IAM) has found 67% of motorists think the government is doing a bad job maintaining the nation’s roads

Almost two thirds (65%) of female drivers believe that the government is doing a bad or very bad job, but the figure increases for male drivers 69 per cent unhappy with the current state of the roads.

A third of drivers (34) think that their council is cutting spending on road maintenance but 60% of drivers don’t know if budgets are being cut, suggesting councils are performing poorly on informing and engaging with local residents. Over half of drivers (52%) think that local councils are doing a bad or very bad job of looking after local roads. Fifty-seven per cent of males and 49% of females believe their council is doing a bad or very bad job.

IAM chief executive Simon Best said, ‘Despite the government’s pothole review, there is a high level of dissatisfaction with the efforts of authorities to keep our roads safe and smooth drive or ride on.

‘The government need to convince motorists that they have a real cure for the pothole pandemic. This can only be achieved through clear communication on new policies, more sharing of resources, sustained long-term funding and a continued commitment to eradicating the maintenance backlog of crumbling British roads.’

http://www.bodyshopmag.com/news-motorists-unhappy-with-pothole-performance.aspx

Low petrol prices fail to stimulate pump sales

The AA says that petrol prices are at their lowest for nearly three years but lower prices failed to revitalise UK pump sales during the last quarter of 2013, as new government figures reveals.

Overall, petrol demand in 2013 fell by more than 850 million litres, equivalent to 19 days consumption.

Demand for petrol from October to December fell 4.2% compared to the same period in 2012, but the big four supermarkets were hit hardest with a 4.9% reduction while other retailers saw sales fall 3.6%.

Diesel

Sales of diesel at Tesco, Sainsbury's, Morrison's and Asda fared better than on non-supermarket forecourts, with a 2.8% boost in the final quarter of last year as opposed to a 1.5% increase at non-supermarket fuel stations.

Overall, UK diesel demand from October to December rose 2.0%, helped by a 2.0% rise in commercial sales.

A 4.3% boost to supermarket sales of diesel contributed most to an overall 1.8% increase in UK diesel sales in 2013 compared to the year before. This added more than 450 million litres to demand or the equivalent of an extra week's consumption.

Balancing spending

"From September to November, the pump price of petrol fell from a late summer peak 138.38p a litre to a low of 130.13p, before hovering around the 131p level for the rest of the year. In 2012, petrol sales recovered when prices fell – but not in 2013," says Edmund King, the AA's president.

"We think that, having learnt to use car travel and fuel consumption as a budgetary lever, UK families reacted accordingly when faced with the threat of a 10% rise in domestic energy costs. In December, when we gauged how 17,629 AA members would respond to a power cost surge, 35% said that cutting back on car use was their way to balance spending."

Fight back?

Although supermarkets have been charging more consistently for fuel, with the price gap between rural towns much less, their share of petrol sales has fallen more than for other retailers.

Price-matching and reward point schemes that offer pretty much the same may have made it harder for consumers to distinguish between the two types of retailer. However, Tesco's new reward card fuel offer may indicate a fight back that other supermarkets will follow. More competitive diesel prices, though, seem to be working better for supermarkets.

http://www.motorworldarc.co.uk/news.asp

Bad driving habits revealed

A new survey into the bad habits of British drivers has uncovered:

.  58% of people will risk cutting across another vehicle if they are not in the correct lane;

.  77% sometimes or regularly eat/drink while driving;

.  45% of motorists are willing to speed by 20 mph or more on dual carriageways and motorways;

.  81% check out other drivers to see if they're attractive.

Aggressive Driving

Aggressive driving is a common problem on roads across the world, and the UK is no exception, as our survey has revealed.

Cars in front of us not going as fast as we'd like prove to be one of our biggest bug-bears, with tailgating representing the most common response.

61% of those surveyed admitted to tailgating the car in front when they weren't going as fast as they were, with almost 1 in 4 of us (24%) claiming to do so 'often' or 'all of the time'.

More aggressive reactions such as flashing headlights, sounding the horn or gesturing were less common, with 73% claiming to never do so, however at least 10% of respondents admitted that this is how they deal with this situation 'often' or 'all of the time'.

It was also surprising how many of us will take a risk cutting across another driver if they are in the wrong lane. Although only 14% will do so often or more, a massive 44% will do so if they "think it is safe".

Distractions

Despite recent laws toughening up on using a mobile phone while driving, a significant proportion of UK drivers will still take a call or send a text when behind the wheel.

Although the majority of motorists would never take a call on a handheld phone (65%) or send a text (63%) while driving, 51% would answer a hands-free phone (20% 'All of the time'; 31% if they thought it was important),

However we're even more distracted by food and drink behind the wheel, with 26% of respondents eating or drinking whenever they felt the need, and over half (51%) doing so at least some of the time.

The car radio/CD player and sat-nav are also common distractions for modern drivers, with only 6% of those surveyed claiming to never adjust either of them while in motion.

Signalling

We all know the importance of indicating our intentions when out on the road, and 83% of respondents only fail to indicate if they forget to do so, while 81% check to make sure the various bulbs are working correctly at least every 3-6 months.

Speeding

Speeding to some degree is undoubtedly one of the most common habits drivers display, and a staggering 38% of drivers admit to speeding on ALL kinds of roads - even those where vulnerable road users may be present.

Unsurprisingly, it is on dual carriageways and motorways where people are most likely to speed, with 45% of motorists happy to drive at least 90 mph, while almost 1 in 4 (24%) claiming to speed by as much as they can feel they "can get away with".

The percentage of those who claim to never speed on 40 mph, 50 mph and 60 mph roads increases to 30%, while the majority also speed by up to 10 mph at least on 30 mph roads (58%).

Even on 20 mph roads and school zones the percentage of motorists willing to speed is 38%, with almost one third of those willing to do so by 20 mph or more.

Perhaps the most telling statistic though is to the question of whether motorists believe their bad habits put themselves or others in danger. Almost half (44%) claimed that their bad habits weren't dangerous, while 37% felt that the risk was not greater than any other driver.

http://www.motorworldarc.co.uk/news.asp

Crash for Cash - Reading gang arrested in raids

Police have arrested four men after raiding properties across Reading as part of an investigation into "crash for cash" insurance scams.

Officers searched buildings in Cardiff Road, Wantage Road, Cholmeley Road, Elm Park Road, and Elm Lodge Avenue.

The men, aged 27, 30, 38 and 39, and all from Reading, were arrested on suspicion of fraud.

"Crash for cash" is thought to involve people staging collisions in order to make claims against motorists.

Thames Valley Police (TVP) is investigating crashes between March and September 2013 in the South and Vale, Abingdon, and Oxford areas, in what is being called Operation Shunt.

Police said a "substantial amount of cash was seized" and that another man, 27, has detained by immigration enforcement officers.

Det Insp Louise Roddy said: "The types of offences we have been investigating present a risk to the public so this operation sends out a clear message that TVP takes such offences seriously and will deal with any offenders robustly."

http://www.motorworldarc.co.uk/news.asp

Councils Receive Share Of Emergency Road Repair Fund

Councils in England have learnt how much money to expect from the government's emergency fund to repair roads damaged by the recent severe weather. This £183.5 million investment follows a particularly harsh winter and will contribute to fixing more than three million potholes. 

The money is being distributed now to ensure that work starts soon, with the expectation that the majority will be complete for the summer holidays. 116 Local Highway Authorities in England will receive a share of the funding, and Transport for London will distribute its payment to the London Boroughs. 

The Authorities will then have to reveal to the public where the money has been spent via their websites - so there will be some accountability. Furthermore, the Chancellor of the Exchequer recently confirmed – during the budget of March 2014 – that a further £200 million pounds will be made available to repair potholes in the financial year 2014 - 2015.

Original article by http://www.motoring.co.uk/car-news/councils-receive-share-of-emergency-road-repair-fund_62167

http://www.motorworldarc.co.uk/news.asp

ENGLAND	£173,499,998
LONDON	£10,000,000
EAST MIDLANDS	£11,774,197
Derby	£221,695
Derbyshire	£2,946,577
Leicester	£250,828
Leicestershire	£1,491,977
Lincolnshire	£3,311,952
Northamptonshire	£1,544,481
Nottingham	£232,906
Nottinghamshire	£1,565,207
Rutland	£208,574
EAST OF ENGLAND	£16,174,242
Bedford	£289,423
Central Bedfordshire	£467,714
Cambridgeshire	£1,531,297
Essex	£2,700,386
Hertfordshire	£3,620,756
Luton	£120,725
Norfolk	£3,689,546
Peterborough	£325,057
Southend-on-Sea	£273,418
Suffolk	£2,944,452
Thurrock	£211,468
NORTH EAST	£6,298,272
Darlington	£178,442
Durham	£1,241,952
Gateshead	£294,795
Hartlepool	£131,268
Middlesbrough	£140,529
Newcastle upon Tyne	£282,923
North Tyneside	£251,071
Northumberland	£2,736,241
Redcar and Cleveland	£263,488
South Tyneside	£172,647
Stockton-on-Tees	£258,308
Sunderland	£346,608
NORTH WEST	£13,179,700
Blackburn with Darwen	£171,935
Blackpool	£142,518
Bolton	£309,888
Bury	£192,770
Cheshire East	£1,249,785
Cheshire West and Chester	£856,911
Cumbria	£3,018,761
Halton	£230,978
Knowsley	£202,454
Lancashire	£2,279,110
Liverpool	£465,035
Manchester	£419,421
Oldham	£811,773
Rochdale	£238,301
Salford	£259,010
Sefton	£300,119
St. Helens	£252,281
Stockport	£286,735
Tameside	£220,026
Trafford	£234,953
Warrington	£313,559
Wigan	£358,930
Wirral	£364,447
SOUTH EAST	£44,575,080
Bracknell Forest	£162,840
Brighton and Hove	£295,048
Buckinghamshire	£2,507,486
East Sussex	£2,645,187
Hampshire	£11,509,673
Isle of Wight	**
Kent	£8,602,389
Medway	£266,288
Milton Keynes	£371,011
Oxfordshire	£4,782,149
Portsmouth	£146,868
Reading	£151,947
Slough	£87,613
Southampton	£221,057
Surrey	£5,341,676
West Berkshire	£1,489,480
West Sussex	£3,475,968
Windsor and Maidenhead	£2,123,047
Wokingham	£395,353
SOUTH WEST	£46,753,155
Bath and North East Somerset	£417,931
Bournemouth	£349,312
Bristol	£342,924
Cornwall	£10,758,008
Devon	£6,985,437
Dorset	£5,874,311
Gloucestershire	£3,308,360
Isles of Scilly	£80,827
North Somerset	£395,350
Plymouth	£1,573,772
Poole	£255,311
Somerset	£12,335,841
South Gloucestershire	£479,062
Swindon	£250,459
Torbay	£336,225
Wiltshire	£3,010,025
WEST MIDLANDS	£14,389,334
Coventry	£362,105
Dudley	£318,757
Herefordshire	£3,538,803
Sandwell	£302,501
Shropshire	£1,783,118
Solihull	£723,664
Staffordshire	£2,131,285
Stoke-on-Trent	£261,821
Telford and The Wrekin	£333,278
Walsall	£251,947
Warwickshire	£1,969,251
Wolverhampton	£231,973
Worcestershire	£2,180,831
YORKSHIRE AND HUMBER	£10,356,018
Barnsley	£606,045
Bradford	£575,187
Calderdale	£380,034
Doncaster	£521,974
East Riding of Yorkshire	£1,302,654
Kingston upon Hull	£204,375
Kirklees	£606,663
Leeds	£949,426
North East Lincolnshire	£213,863
North Lincolnshire	£646,518
North Yorkshire	£3,223,589
Rotherham	£392,016
Wakefield	£487,955
York	£245,719

The controversial subject of repairing cracked alloy wheels hit the headlines last year.

The controversial subject of repairing cracked alloy wheels hit the headlines last year. All sides of the industry had their say on the safety issues and practices, and as a result, bodyshops have subsequently come under scrutiny to ensure that under their duty of care, they advise consumers accordingly on issues associated. bodyshop’s Joe Gregory reports.

Consumers may not realise it, but a cracked alloy wheel is far more dangerous than they might think – no matter how small the crack may be. Even a crack which is unnoticeable to the naked eye could have disastrous consequences. For this reason, industry professionals tend to steer clear of cracked alloys unless they have gone through thorough testing – the risks far outweigh the benefits.

However, repairs of this nature do happen, and it is a bit of minefield for everyone concerned. As a precedent, one consumer, with the help of What Car? took a dealership to court last October and won £1,160 in damages after it sold a vehicle with a ‘repaired’ cracked alloy wheel. What Car? quoted The Welding Institute as saying that ‘weld repair on a cast aluminium road wheel is potentially lethal and could fail catastrophically without warning.’

The wheel in question, however, had been initially repaired, and was of such a poor standard that the tyre deflated after five days. Who repaired the wheel is unknown, however, the fact that these repairs are happening in the first place is a cause for concern as it tarnishes the repair industry as a whole.

‘I have never seen a cracked alloy wheel repair that is safe, or that has had a thorough inspection apart from a visual safety check – and it is impossible to detect hairline cracks with the naked eye,’ said Trevor Ferris, managing director, Eco Express Systems. ‘It is important to note that the point of impact is not always where the fracture appears. Critically, in all cases, without exception, a non-destructive test (NDT) kit should be used if a repair has been undertaken. To the best of my knowledge we are the only company to not only supply the kits, but also have an IMI certified training course for alloy wheel repair.’

Remit
Some have considered conducting these repairs as part of their wheel refurbishment remit, but have, when realising the dangers they pose, abandoned the idea. ‘When considering if we would implement crack/tear repairs in our wheel refurbishment business, we set a stringent test to comply with our health and safety obligations,’ said Anatol Poyer-Sleeman, director and franchise owner, Chipsaway Cambridge. ‘To engage in this sort of repair work, we would need to be sure that the expert opinion is undivided and that such repairs can be consistently achieved to a safe standard. We would also need to implement a non-destructive test of each weld before it goes out to ensure road user safety. We weren't able to satisfy ourselves as to that test.’

image - www.1stforalloys.co.uk 

This advice rings true throughout other parts of the industry too. ‘Our recommendation is that a body repairer doesn’t repair a cracked wheel,’ said Steve Paver, sales manager, Optima Smarter Solutions. ‘There is, however, a unique code on the back of the wheel which provides full tractability enabling any bodyshop to see if the wheel has been repaired before. Therefore, providing the wheel repair has been conducted by properly trained and skilled technicians, consumers should feel reassured that their wheels are as good as when they came off the factory production line and will be safeguarded from further impact.’

NDT techniques are varied and include: radiography, computerised tomography scanning, x-rays, ultrasonic testing, liquid penetrant testing and more. This potentially adds to cost of any repair, which is the crux of why some unmonitored cracked alloy wheel repairs are on the road.

‘I am sure that the reason no test is carried out is that there is no awareness that this is a critical safety check area,’ said Trevor Ferris. ‘It should be known that a test would take an average of five to10 minutes to carry out, and that the cost of a NDT is less than a can of paint.’

Security
Unfortunately, for the unsuspecting motorist, there is no legislation or security for them at present. ‘I would expect that it would take legislation, or at the very least Health and Safety Executive (HSE) guidance backed up by robust enforcement, to prevent dangerous wheel repairs continuing in the market,’ said Anatol Poyer-Sleeman.

However, making the public aware of this matter is also a stumbling block – as proving a vehicle collision occurred solely because of this would be tricky to say the least.

‘The recent cosmetic repair automotive technician accreditation (ATA) has created a national standard for professional repairers, and NDT is widely available,’ said Mark Llewellyn, managing director, Revive! Auto Innovations. ‘However, if a consumer’s first priority with a wheel repair is the cost, then they will ultimately ignore the risks of having a professional repair done.’

Categories
Wheel repair comes under two categories, cosmetic and refurbishment. Wheel refurbishment tends to include the complete overhaul of wheels including stripping, resurfacing and repainting. Diamond cut alloys are also common on today’s vehicles and these can be re-cut through a refurbishment process. Mark Llewellyn explained how a cosmetic repair to a diamond wheel can still be of a good quality. ‘A diamond cut wheel cannot be completely replicated through a cosmetic repair – however, in many instances, where a professional repairer is involved, a cosmetic repair to a diamond cut wheel is acceptable,’ said Mark. ‘However, a cosmetic wheel repair should not be carried out if the wheel has any structural damage ie if the wheel is buckled or has chunks missing.’

The market as a whole is also changing a lot for a variety of reasons. Spare wheels found inside vehicles are often replaced with other alternatives, due to the weight and space savings that can be made. Although this is unpopular with some consumers, more and more modern cars are now fitted with space saving wheels, for example. This, as well as tyre monitoring systems, has swung the refurbishment and repair market into the limelight.

‘Many systems have onerous maintenance requirements eg a new specialist valve every time a tyre is changed’ said Anatol Poyer-Sleeman. ‘We have noticed that many wheels have tyres changed and old valves refitted or valves fitted wrongly, for example, galvanic corrosion or bolt-in valves hugely over-torqued are the most common we’ve come across.’

In numbers: Wheel refurbishment*

• 32m vehicles on UK roads
• 98% of all vehicles have alloy wheels
• 5.3m vehicles have been repaired
• 40% (2.12m) vehicles have undergone a SMART repair
• Of the 40%, 28% (593,600) have had an alloy wheel refurbishment

*courtesy of Optima Smarter Solutions

A bodyshop view

Fix Auto Cardiff South and Pontypridd owner Steve Peart, has invested £110,000 developing an alloy wheel repair facility, tells us his view on wheel refurbishment.

An alloy wheel can be repaired to a safe standard, but that obviously depends on the severity of the damage. Safety is paramount and if an inspection throws up any doubt, then we would always discard it.

The confidence has to be with the repairer. While our dedicated facility is new, like many reputable bodyshops, we have been refurbishing and repairing alloy wheels for a long time. It is that experience and expertise that guarantees a wheel has been repaired to the highest standards. We would never put a wheel onto a vehicle if there’s any question over its safety.

There’s a huge educational campaign needed. Motorists are not aware of the dangers of driving with defective or damaged wheels. They are potential killers. Personally, I believe a thorough wheel inspection should be included in the MOT test. The situation of alloy wheel safety has been heightened with the increase of substandard ‘fake’ alloys flooding our market. Wheels produced by vehicle manufacturers are made to the highest standards possible by using the best quality alloy metal available. You simply can’t say that about cheaper, copied, versions. Those who put them on their vehicle are gambling with their lives, the lives of the passengers and the welfare of other road users.

http://www.bodyshopmag.com/Features-wheel-refurbishment-feature-cracking-up.aspx
http://www.motorworldarc.co.uk/news.asp

Insurance Fraud Enforcement Department (IFED) - 17 arrested in nationwide raids by police tackling 'credit hire fraud

17 people have been arrested in raids across England by detectives investigating criminal gangs making false insurance claims for courtesy cars provided to motorists while their own vehicle is being fixed.

20 warrants were executed at business and residential addresses in Essex, Hertfordshire, Lancashire, London, Northamptonshire, Nottinghamshire, Surrey and West Yorkshire, yesterday morning (Wednesday 26 March 2014) in a police day of action that marks the culmination of months of investigation by the Insurance Fraud Enforcement Department (IFED).

One hundred officers took part in the operation that saw the City of London Police unit supported by colleagues from the force's Economic Crime Directorate and officers from local forces.

Criminal gangs typically set up phoney, or use corrupt, claims management and hire companies to commit this type of insurance fraud, known by industry as 'credit hire fraud'.

Through these businesses the fraudsters will invoice insurers for a courtesy car they have not actually provided, commonly called 'phantom hire'.

In other instances they will 'lease' the same courtesy car to different motorists at the same time and put in a separate claim for each fictional hire, often known as 'cross hire'.

Sometimes they may also bill an insurer for providing a top spec courtesy car when only a basic model was given. Hire periods are also often exaggerated.

DCI Dave Wood, Head of IFED, said:

"This operation reveals credit hire fraud as a nationwide problem which IFED is tackling through a co-ordinated law enforcement response.

"While insurers are the criminals' intended victims, innocent motorists ultimately pay the price in terms of the impact of insurance fraud on the cost of premiums.

"Insurer diligence, coupled with enforcement action being taken by IFED and supported by local police forces, is paramount to confront this threat now and in the future."

Arrest breakdown across the police force areas as follows:

· Lancashire = 3

· London = 9

· Northamptonshire = 1

· Nottinghamshire = 2

· West Yorkshire = 2

The 17 people were arrested on suspicion of a variety of offences including fraud by false representation, conspiracy to defraud, money laundering and forgery.

http://www.motorworldarc.co.uk/news.asp

IFB welcomes jail term for fraudsters

The Insurance Fraud Bureau (IFB) has welcomed the further sentencing of three convicted insurance fraudsters, for failing to repay their ill-gotten gains.

Originally sentenced to jail in 2010 for submitting over 100 fraudulent insurance claims, brothers Nadeem and Amer Dad and their father, Munsif Dad, were also required to repay almost £280,000.

As Nadeem and Amer haven't repaid a penny, and Munsif has only funded a third of what was expected of him, all three have been sentenced to a total of almost four and a half more years in prison.

Investigators had previously secured a £51,800 confiscation order against Nadeem Dad over a scam which saw false claims made for storm damage, car crashes and even lost pedigree bulldogs.

Ben Fletcher, Director of the Insurance Fraud Bureau said: "This decision sends an important message to insurance fraudsters everywhere; if you expect your illegal profits to be waiting for you when you get out of jail you'll be back there quicker than you expect. We wholeheartedly support the actions of the Crown Prosecution Service and their pursuit of fraudsters who somehow think that they are entitled to keep their illegal nest-egg."

The IFB was formed in 2006 to spearhead the collective fight against organised insurance fraud. Since its inception, the IFB has assisted police with over 915 arrests and helped secure total jail terms of more than 235 years for organised fraudsters."

Det Insp Dave Groombridge, of Pennine CID, who investigated the case had previously said: "Fraudulent claims hit the pockets of the decent law-abiding public with every resident, motorist and trader facing increased premiums to compensate for the greed of these criminals.

"Nadeem Dad not only received a custodial prison sentence, but he has also had to face the consequences of his actions by repaying a significant amount of his ill-gotten gains.

"I hope this sends out a warning that if we find you with cash that you cannot account for, you will be targeted."