WHY OH WHY IS ACCIDENT DATA OF AUTHORISED VEHICLE REPAIR BEING SOLD TO THIRD PARTIES
There has been recent consumer anger escalation at being prejudiced through, in opinion, contravention of new laws/regulations related to personal information sharing without knowledge or prior authorisation are being received.
There are a number of open questions that need public intervention when it comes to the sale of private vehicle accident data compiled from data of major insurance companies. Details of any previous accidents that a vehicle may have been involved in its life on the road appear to be sold without the vehicle owners’ knowledge. And this is definitely not new as agreements on allowed protocol hereon date back to the mid-2000s.
Please note the following for context:
The client has an accident and reports same to their insurer or asks for a repair estimate from the repairer in the instances where an insurer is not involved.
The insurer/repairer utilises a specific damage quantification and estimation platform to complete the validation value for determination of repair or write-off.
The information on the platform includes the vehicle make and model, registration number. VIN number, client personal contact details, all costs associated with the repair and a comprehensive breakdown of all labour, paint and parts used to repair the vehicle.
In hindsight we are aware that the client is obliged, and rightly so, to disclose to any prospective buyer that the vehicle was repaired after an accident. However, the cost and extent of the damages are not material at the point of sale as the prospective buyer has to satisfy themselves as to the condition of the vehicle.
Often the cost of repairs, especially on luxury vehicles, are very high due to parts pricing and the severity of the accident. A BMW X5 can have R200k repair which literally constitutes a bumper and two headlight replacements. When you disclose the R200k value to the prospective buyer, often not understanding damage severity etc., they will assume the worst and the car value may seem to diminish considerably.
Initial research shows an accident damage quantification solution company has recently been put in this light along with other companies who have bought this information for both further analysis and sale considerations.
Two areas of concern must, however, be looked into carefully. Firstly, are these commercial operators selling private data that is not theirs to make money for their operations? Secondly, who researches the severity of the accident and repair when it comes to customers wanting to trade in or sell their vehicle and disclosure thereof?
The repercussion of selling the comprehensive information to certain parties, is that this information is used to diminish, unfairly so, the value of any vehicle to be traded. Not to mention the chaos it creates when the new buyer finds out about the cost months after the sale, and purely based thereon, wants to cancel the sale.
The consequence hereof is the systematic destruction of the used car market over time.
Just where a consumer may be protected in these ongoing data and vehicle checks by third party businesses remains a black hole. Where is the right to privacy promised by the POPIA act and the Consumer Protection Act, amongst other guidelines? How much information is changing hands and for whose ultimate gain? Whoever owns the data holds the power to enrich themselves and stand alone to benefit themselves at the end of the day.
The fact that this information has been gained without consent is abominable! Just where and who has what about each of us and what can be done to stop this as data trade for profit is on the increase.
The big question about this data selling is how can they by-pass an owner’s private information when viewed against the Consumer Act’s laws? The answer – more often than not – is a simple one for insured drivers, as they overlook or don’t know about the small print in their policies that states that once an accident is recorded, small or large, the right to own and sell the data on to a third party is provided.
One area that could lift this foggy commercial enterprise would be of course for the SAIA (South African Insurers Association) under their code of Treat Customer Fairly to review, provide opinion and publish understanding on these practises.
By Steve Kessell
