News release

Vehicle Program to Hit the Road

A new program to improve road safety and provide better information for used car buyers will take effect June 30.

The Stolen and Wrecked Vehicle Program is designed to track stolen vehicles and prevent badly damaged vehicles from returning to the road.

"Now we have a link between the accident and the vehicle, and at the same time we'll shut down one avenue auto theft criminals use to dispose of vehicles," said Business and Consumer Services Minister Neil LeBlanc.

"The permits for stolen and damaged vehicles will be permanently branded," he said. "In addition, such brands can only be lifted from damaged vehicles after meeting stringent safety requirements."

"The insurance industry is pleased to have worked with government to bring this program to Nova Scotia," said Don Forgeron, vice- president of the Insurance Bureau of Canada. "While the reporting of stolen vehicles is an important part of this program in our fight against insurance fraud, the consumer protection and road safety element that this program brings to Nova Scotians is by far the most important aspect."

Each year, close to 3,000 vehicles are reported stolen in Nova Scotia and more than 15,000 are involved in major accidents.

Information on badly damaged vehicles will now be reported to the Registry of Motor Vehicles by insurance companies within five days. Stolen vehicles are already reported to the registry by police. The permits of such vehicles will be permanently branded as stolen, salvage, non-repairable, or rebuilt.

A vehicle registration branded stolen can only be changed when the vehicle is recovered by police. Insurance appraisers will determine whether badly damaged vehicles are classified as salvage or non-repairable.

Salvage vehicles can be rebuilt but must pass stringent safety requirements. A registration branded rebuilt means the vehicle was once salvage and has undergone some form of body or structural repair. A rebuilt vehicle must meet strict safety requirements and pass inspection. Non-repairable means the vehicle can never return to the road, and must be junked or sold for parts or scrap.

"The advantage for consumers is that they can check the vehicle's permit to see if it has been branded," said Mr. LeBlanc. "Potential used car buyers will see the red flag and know to ask about the car's accident history and damage."

Legislation enabling the Stolen and Wrecked Vehicle Program was passed last spring and was supported by the Insurance Bureau of Canada, Halifax Regional Municipal police, RCMP, Atlantic Provinces Salvage Dealers Association and the Nova Scotia Automobile Association. The program is part of an effort by the Canadian Council of Motor Transport Administrators to establish national standards regulating rebuilt vehicles.