O. Reg. 376/02: CLASSIFICATION OF VEHICLES AS IRREPARABLE, SALVAGE AND REBUILT
under Highway Traffic Act, R.S.O. 1990, c. H.8
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CLASSIFICATION OF VEHICLES AS IRREPARABLE, SALVAGE AND REBUILT
Consolidation Period: From April 1, 2022 to the e-Laws currency date.
Last amendment: 178/22.
Legislative History: 355/07, 435/12, 890/21, 178/22.
This Regulation is made in English only.
Definitions
1. (1) In section 199.1 of the Act and in this Regulation,
“insurer” means,
(a) an insurer, as defined in subsection 1 (1) of the Compulsory Automobile Insurance Act, or
(b) a person who owns, leases or holds the plate portion of the vehicle permits for 10 or more vehicles the policies of insurance for which do not cover damage caused by all perils;
“irreparable” means, with respect to a vehicle, a vehicle that,
(a) is a total loss and,
(i) has been immersed in liquid to the bottom of its dashboard or higher,
(ii) any major part of its electrical system has been, or appears to have been, immersed in liquid,
(iii) has incurred damage requiring the replacement of,
(A) for a vehicle the occupant compartment of which extends from the front door hinge pillar assemblies to the rear-most cross-member of the vehicle, five or more of the structural assemblies listed in Parts 2, 3 and 4 of the Schedule,
(B) for a vehicle the occupant compartment of which extends from the front-most cross-member of the vehicle to the rear-most cross-member of the vehicle, seven or more of the structural assemblies listed in Parts 1, 2, 3 and 4 of the Schedule,
(C) for a vehicle other than a vehicle described in sub-subclause (A) or (B), three or more of the structural assemblies listed in Parts 2 and 4 of the Schedule, or
(D) its structural fire wall or bulkhead assembly,
(iv) if the vehicle is a motorcycle, has incurred structural damage requiring the replacement by cutting and welding of any integral part of its full frame assembly, or
(v) has been stolen and dismantled such that the retail price for new parts of a like kind to replace those parts missing or damaged exceeds the fair labour cost to install or repair those parts, and,
(A) a settlement of an insurance claim has been paid for the vehicle as a total loss, or
(B) the vehicle is owned, leased or the plate portion of its vehicle permit is held by a person who is an insurer within the meaning of clause (b) of the definition of “insurer”, or
(b) is classified by the Registrar as irreparable under subsection 199.1 (11) of the Act;
“rebuilt” means, with respect to a vehicle, a vehicle that was classified as salvage by the Registrar under subsection 199.1 (10) or (11) of the Act and for which a structural inspection certificate has subsequently been submitted to comply with subsection 2.1 (1) of Regulation 628 of the Revised Regulations of Ontario, 1990 (Vehicle Permits);
“salvage” means, with respect to a vehicle, a vehicle that,
(a) is a total loss and has incurred damage requiring replacement of one or more of the structural assemblies listed in Parts 1, 2, 3 and 4 of the Schedule, but is not irreparable,
(b) is classified by the Registrar as salvage under subsection 199.1 (11) of the Act, or
(c) is a motor vehicle assembled using the body of a motor vehicle with a model year of 1981 or later and the chassis frame assembly of another motor vehicle, both of which were manufactured utilizing a full frame assembly as part of the vehicle’s structure;
“salvage value” means the value of a damaged or stolen and dismantled vehicle that is legitimately recoverable through commercial means of disposal and, if the damaged or stolen and dismantled vehicle is purchased by a person described in paragraph 2 of subsection 4 (1), that value is the price paid by the person for the vehicle;
“total loss” means, with respect to a vehicle, a vehicle that has been damaged by collision, impact, fire or flood, or has been stolen and dismantled, such that the estimated cost of repairing it exceeds the difference between the fair market value of the vehicle immediately before it was damaged or stolen and its salvage value. O. Reg. 376/02, s. 1 (1).
(2) For the purposes of the definitions of “irreparable” and “salvage” and sub-subparagraph 2 i A of subsection 4 (1), a structural assembly, structural firewall or bulkhead assembly requires replacement if,
(a) it has been damaged by impact and has been torn, kinked or bent beyond the manufacturer’s repair standards or, if there are no manufacturer’s repair standards, beyond the commonly accepted standards of the auto body collision repair industry; or
(b) it has been damaged by heat beyond the manufacturer’s repair standards or, if there are no manufacturer’s repair standards, beyond the commonly accepted standards of the auto body collision repair industry. O. Reg. 376/02, s. 1 (2).
(3) For the purposes of the definition of “irreparable” and sub-subparagraph 2 i B of subsection 4 (1), the following are major parts of the electrical system of a vehicle:
1. A fuse panel or breaker panel.
2. A component that monitors, triggers or controls any component of the vehicle’s occupant restraint systems.
3. An electronic component that transmits or relays power for use in the heating or cooling of the vehicle’s occupant compartment.
4. An electronic component that transmits or relays power for use in the vehicle’s defogging or defrosting systems.
5. An electronic component or module that controls the vehicle’s primary operating systems.
6. A main wiring harness with unsealed connections that is located in the occupant compartment.
7. An electronic module that controls the vehicle’s on board self-diagnostic system, excluding communications, navigational and entertainment systems.
8. An electronic module that controls the vehicle’s braking systems or steering systems. O. Reg. 376/02, s. 1 (3).
(4) For the purpose of the definition of “total loss”, the estimated cost of repairing the vehicle must be calculated using reasonable commercial rates for parts, supplies and labour. O. Reg. 376/02, s. 1 (4).
Inspection of vehicles
2. (1) If a person described in paragraph 1 of subsection 4 (1) is making the determination that a vehicle, other than a motorcycle, is irreparable or salvage, the determination shall be based on an inspection of the vehicle carried out by a person who,
(a) holds a certificate of qualification, that is not suspended, in the trade of automotive service technician, truck and coach technician or auto body and collision damage repairer issued under the Building Opportunities in the Skilled Trades Act, 2021; and
(b) Revoked: O. Reg. 178/22, s. 1 (1).
O. Reg. 376/02, s. 2 (1); O. Reg. 435/12, s. 1 (1); O. Reg. 890/21, s. 1; O. Reg. 178/22, s. 1 (1).
(2) If a person described in paragraph 1 of subsection 4 (1) is making the determination that a motorcycle is irreparable, the determination shall be based on an inspection of the motorcycle carried out by a person who,
(a) holds a certificate of qualification, that is not suspended, in the trade of motorcycle technician, automotive service technician, truck and coach technician or auto body and collision damage repairer issued under the Building Opportunities in the Skilled Trades Act, 2021; and
(b) Revoked: O. Reg. 178/22, s. 1 (1).
O. Reg. 376/02, s. 2 (2); O. Reg. 435/12, s. 1 (2); O. Reg. 890/21, s. 1; O. Reg. 178/22, s. 1 (1).
(3) Every person who carries out an inspection of a vehicle on behalf of an insurer or a person described in paragraph 2 of subsection 4 (1) to determine that the vehicle is irreparable or salvage shall provide the insurer or other person on whose behalf the inspection is carried out with a copy of the records used and created in carrying out the inspection and the insurer or other person shall retain the records for two years. O. Reg. 376/02, s. 2 (3).
(4) Revoked: O. Reg. 178/22, s. 1 (2).
(5) A person who carries out an inspection under subsection (1) shall only inspect a vehicle that is within the scope of his or her certificate of qualification. O. Reg. 376/02, s. 2 (5).
Notification by insurer
3. (1) An insurer shall notify the Registrar that a vehicle is irreparable or salvage under subsection 199.1 (4) of the Act,
(a) if the insurer, within the meaning of clause (a) of the definition of “insurer”,
(i) acquires ownership of the vehicle, within six days after the date on which the insurer acquires ownership,
(ii) pays a settlement of the claim to the holder of the permit, but does not acquire ownership of the vehicle, within 14 days after the date on which the insurer pays the settlement; or
(b) if the insurer is an insurer within the meaning of clause (b) of the definition of “insurer”, within six days after the date of the incident giving rise to the determination. O. Reg. 376/02, s. 3 (1).
(2) Notification of the Registrar by the insurer shall be in the form approved for the purpose by the Minister, fully completed by the insurer. O. Reg. 376/02, s. 3 (2).
(3) The form approved by the Minister shall require,
(a) the vehicle identification number;
(b) the insurer’s determination that the vehicle is irreparable or salvage;
(c) the name of the holder of the plate portion of the vehicle permit at the time of the incident giving rise to the determination or, if no plate portion has been issued, the name of the holder of the vehicle portion of the vehicle permit;
(d) if applicable, the driver’s licence number, date of birth, address and telephone number of the holder described in clause (c);
(e) the date of the incident giving rise to the determination;
(f) if applicable, the insurance claim number for the claim relating to the incident giving rise to the determination;
(g) if applicable, the date the insurer acquired ownership of the vehicle or the date the insurer settled the claim, if the insurer does not acquire ownership of the vehicle, as the case may be;
(h) the name and address of the insurer and the insurer’s registrant identification number on the records of the Ministry; and
(i) the name, business address and telephone number of the individual who carried out the inspection and completed the form on behalf of the insurer. O. Reg. 376/02, s. 3 (3).
(4) An insurer shall also notify the holder of the vehicle permit or the vehicle portion of the vehicle permit for the vehicle under subsection 199.1 (8) of the Act, in writing, that the insurer has determined that the vehicle is irreparable or salvage, within the time limits for notifying the Registrar set out in subsection (1). O. Reg. 376/02, s. 3 (4).
Notification by other persons
4. (1) The following are required to notify the Registrar under subsection 199.1 (5) of the Act:
1. A person other than an insurer who is, at the time of the incident giving rise to the determination that the vehicle is irreparable or salvage, the holder of the plate portion of the vehicle permit for the vehicle or, if no plate portion of the permit has been issued, the holder of the vehicle portion of the vehicle permit and who,
i. does not have insurance for the vehicle,
ii. does have insurance for the vehicle, but the policy of insurance does not cover damage caused by all perils, or
iii. does have insurance for the vehicle, but a settlement of the claim made in relation to the incident giving rise to the determination is not paid by the insurer to the person within 25 days after the incident.
2. A person other than an insurer, including an importer, salvager or auctioneer, who buys, sells, wrecks or otherwise deals in used vehicles, who acquires ownership of a vehicle,
i. that,
A. appears to have been involved in a collision, impact or fire that caused damage to a structural assembly listed in Part 1, 2, 3 or 4 of the Schedule or that required the replacement of the structural firewall or bulkhead assembly of the vehicle, or
B. appears to have been immersed in liquid to the bottom of the dashboard or higher, or any major part of its electrical system has been or appears to have been immersed in liquid, and
ii. the vehicle permit for which has not yet been classified by the Registrar as irreparable or salvage as a result of the damage or apparent immersion in liquid described in sub-subparagraph i A or B. O. Reg. 376/02, s. 4 (1).
(2) If a person described in paragraph 1 of subsection (1) determines that a vehicle is irreparable or salvage, that person shall so notify the Registrar under subsection 199.1 (5) of the Act within 26 days after the date of the incident giving rise to the determination. O. Reg. 376/02, s. 4 (2).
(3) If a person described in paragraph 2 of subsection (1) determines that a vehicle is irreparable or salvage, that person shall so notify the Registrar under subsection 199.1 (5) of the Act within six days after acquiring ownership of the vehicle. O. Reg. 376/02, s. 4 (3).
(4) Notification by a person described in subsection (1) shall be in the form approved for the purpose by the Minister, fully completed by the person described in subsection (1). O. Reg. 376/02, s. 4 (4).
(5) The form approved by the Minister shall require,
(a) the vehicle identification number;
(b) the person’s determination that the vehicle is irreparable or salvage;
(c) the name, address and telephone number of the holder of the vehicle portion of the vehicle permit at the time of the determination and the holder’s driver’s licence number or registrant identification number on the records of the Ministry, as the case may be;
(d) the date of the incident giving rise to the determination, if known; and
(e) the name, business address and telephone number of the individual who carried out the inspection and completed the form on behalf of the person who is required to notify the Registrar. O. Reg. 376/02, s. 4 (5).
(6) A person described in paragraph 1 of subsection (1) shall also notify the holder of the vehicle portion of the vehicle permit for the vehicle, if the vehicle portion of the permit is held by another person, under subsection 199.1 (8) of the Act, in writing, that the person has determined that the vehicle is irreparable or salvage, within the time limits for notifying the Registrar set out in subsection (2). O. Reg. 376/02, s. 4 (6).
Submissions re Registrar’s classification
5. The holder of the vehicle permit or the vehicle portion of the vehicle permit for the vehicle must make the submissions under subsection 199.1 (12) of the Act within 90 days after the date of the issuance under subsection 199.1 (18) of the Act of a replacement permit or a replacement portion of a permit for the vehicle that indicates that the vehicle is classified as irreparable or salvage. O. Reg. 376/02, s. 5.
Duty to return permit
6. The holder of the vehicle permit or the vehicle portion of the vehicle permit for the vehicle shall return the permit or portion of the permit to the Registrar as required under subsection 199.1 (16) of the Act not later than the date the holder is required to notify the Registrar under subsection 4 (2) or (3) or, if the holder is not a person required to notify the Registrar under those subsections, within 10 days after the vehicle is determined by the Registrar to be irreparable or salvage. O. Reg. 376/02, s. 6.
Equivalent classifications from other jurisdictions
7. (1) In this section,
“another jurisdiction” means,
(a) another province of Canada,
(b) a territory of Canada,
(c) any state of the United States of America,
(d) Mexico,
(e) any member state of the European Union,
(f) Norway,
(g) Switzerland, or
(h) Japan. O. Reg. 355/07, s. 1.
(2) For the purposes of subsections 199.1 (11) and (19) of the Act,
(a) another jurisdiction’s classification of a vehicle that is or was registered in that jurisdiction that is used by that jurisdiction to indicate that the vehicle has been or may be repaired for continued use as a vehicle is equivalent to the salvage classification in Ontario;
(b) another jurisdiction’s classification of a vehicle that is or was registered in that jurisdiction that is used by that jurisdiction to indicate that the vehicle is not fit to be repaired for continued use as a vehicle, including a classification that describes the vehicle as irreparable, scrap, junk, wrecked, dismantled, damaged, totalled, intended for destruction or to be used for parts only is equivalent to the irreparable classification in Ontario;
(c) another jurisdiction’s classification of a motorcycle that is or was registered in that jurisdiction that is used by that jurisdiction to indicate that the motorcycle has been or may be rebuilt, including a classification described in clause (a) or (b) or in subsection (3), is equivalent to the irreparable classification in Ontario. O. Reg. 355/07, s. 1.
(3) Despite clauses (2) (a) and (b), another jurisdiction’s classification of a vehicle that is or was registered in that jurisdiction that describes the vehicle as having been immersed in water to any degree or having been damaged in a fire is equivalent to the irreparable classification in Ontario. O. Reg. 355/07, s. 1.
Exemptions
8. Section 199.1 of the Act does not apply to,
(a) a trailer, traction engine, farm tractor, road-building machine, bicycle, motor assisted bicycle, motorized snow vehicle or street car;
(b) a motorcycle for which a permit was issued under the Act before it was damaged or stolen and dismantled, other than a motorcycle that is irreparable as a result of such damage or theft and dismantling; or
(c) a motor vehicle with a model year of 1980 or earlier. O. Reg. 355/07, s. 2.
9. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 376/02, s. 9.
Schedule
STRUCTURAL ASSEMBLIES
Part 1
Radiator Support Assembly
Upper Rail Assembly — Left
Upper Rail Assembly — Right
Lower Rail Assembly — Left
Lower Rail Assembly — Right
Front Strut Tower/Apron Assembly — Left
Front Strut Tower/Apron Assembly — Right
Cowl Top Panel Assembly
Engine Sub-Frame Assembly
Part 2
Dash Panel Assembly
Windshield “A” Pillar Assembly — Left
Windshield “A” Pillar Assembly — Right
Side Rocker Panel Assembly — Left
Side Rocker Panel Assembly — Right
Centre Hinge “B” Pillar Assembly — Left
Centre Hinge “B” Pillar Assembly — Right
Rear “C” Pillar Assembly — Left
Rear “C” Pillar Assembly — Right
Front Floor Pan Assembly
Rear Floor Pan Assembly
Roof Panel (structural) Assembly
Part 3
Rear Strut Tower/Inner Wheelhouse Assembly — Left
Rear Strut Tower/Inner Wheelhouse Assembly — Right
Inner Quarter Panel Assembly — Left
Inner Quarter Panel Assembly — Right
Rear Cross-Member Assembly
Rear End Panel Assembly — Upper
Rear End Panel Assembly — Lower
Rear Sub Frame Assembly — Left
Rear Sub Frame Assembly — Right
Trunk Floor Pan Assembly
Part 4
Full Frame Vehicle: Complete Full Frame Assembly
O. Reg. 376/02, Sched.