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Scenario Pricing A concept pioneered by Auto-Rescue Logistics as part of the Guarantee of Payment (GOP) system introduced in 2006 and now forming the benchmark by which many motor insurers assess vehicle recovery charges. The Home Office issued their ‘Statutory Charges For The Removal And Disposal Of Vehicles’ consultation paper in May 2007 based upon a scenario charging strategy. At a joint meeting of Key Stakeholders in March 2007 the Home Office set out the doctrine by which the consultation paper would be created. “The review is concerned with the charges only, not the circumstances in which police powers are used, the way in which they are used or the operation of recovery schemes and contractual arrangements. These will remain operational and commercial matters for the police and other parties involved” " Vehicles removed on police instructions remain the property of their owner and must be released to the owner on payment of any prescribed charge. If no charge is prescribed, then they must be released to owners on request, without payment by them” Given these constraints, the option currently under consideration for consultation is statutory charges based on scenarios according to vehicle type, (e.g. motor vehicle 3.5tonnes to 7.5 tonnes GVW or Heavy Goods Vehicle over 18 tonnes GVW), condition(e.g. damaged, overturned, load shed) and location (e.g. on or off road). The Home Office further proposes in future to increase statutory charges annually in line with inflation and to conduct a full-scale review every 3 years. Other options considered by the Home Office included:
The Consultation paper may be viewed on line at : |
