Direct Billing for Loss of Use. Rental Companies

Transcription

1 Direct Billing for Loss of Use Rental Companies Version 1.5 February 23, 2017

2 Contents Introduction Rental Vehicle Rates Managing Loss of Use Costs Role of Rental Vehicle Company Class of Vehicle on Third Party Liability Claims Rental Duration Additional Fees and Charges Authorizations for Rental Allowances by MPI Timeframes for Submitting Authorization Requests MPI Response Times Pre-Requisites for MPI Authorization Rental Vehicle Company Follow-Up Requests Revoking Authorization Information Supplied by Rental Company Information Required When Requesting Authorization Information Required When Additional Rental Days Are Requested Information Required When Requesting Payment Rental Vehicle Is Exchanged For Another Rental Vehicle If the replacement vehicle is in a lower rate class If the replacement vehicle is in a higher rate class Billing MPI for Vehicle Exchange Date Claims on Damaged Rental Vehicles Customer Responsibility for Damages Rental Vehicle Company s Role in Claim Investigation Vehicle Claims Rental Vehicle Insurance (RVI) Claims Downtime on Rental Vehicles Notice of Downtime MPI Must Insure Liable Party Third Parties Not Insured by MPI Page 1

3 6.5.5 Total Theft Claims Downtime Rates Downtime Duration Repairable Vehicles Total Losses Compliance with Business Rules Penalties for Non-Compliance Retaining Copies of Rental Agreements Compliance Audits Duplicate Invoices Due to Overlapping Date Ranges Compliance by Employees Miscellaneous Rules Business Licence Changes Related to Business Compliance with Privacy Laws Compliance with Applicable Laws Training Use of MPI Intellectual Property and Systems Technology Requirements Condition and Insurance of Rental Vehicles Use of Own Registered Account Number and User Identification Page 2

4 Introduction Rental vehicle companies can arrange a rental vehicle for MPI customers who have Loss of Use coverage. This document outlines the rules that rental vehicle companies must follow when direct-billing MPI for Loss of Use. If a rental company is found to be operating outside of these rules, penalties may include: Canceling the ability to direct-bill MPI Terminating access to MPI s loss of use web application Definitions A rental vehicle company is a vendor that meets all of the following conditions: Direct bills MPI for loss of use Invoices MPI for replacement vehicles as an entity separate from any repair shop Administers its rental transactions through the use of formal rental vehicle agreements that are signed by its customers Agrees to store and provide rental vehicle agreements to MPI (upon request) at a future date, as noted in Section 7.3 of this document. Direct-Billing means the vendor invoices MPI directly on behalf of the customer through the web application or via paper invoicing. Currently, this only applies to MCTRA members. Contact Information For questions on this document or the loss of use process, the Claims Processing Unit at CPUnit@mpi.mb.ca. For system support contact Page 3

5 1. Rental Vehicle Rates MPI and the Manitoba Car and Truck Rental Association (MCTRA) have entered into an Agreement to formalize a replacement vehicle rental rate structure. MPI will pay the rental company for Loss of Use according to the rate schedule on MPI s Partners website. 2. Managing Loss of Use Costs 2.1 Role of Rental Vehicle Company A rental company will assist MPI and the customer in managing vehicle rental costs as described in the sections that follow. In general, a rental company will: Explain MPI s loss of use policies to customers, including policy limits. Report any delays to MPI prior to the rental authorization end date, along with the reason for the delay. Contact the repair shops prior to the expected repair completion date to ensure that repairs will be completed before the rental authorization end date and determine the reason for any delays. Notify the customer and the repair shop in cases where MPI determines that it will not pay for further loss of use expenses on a claim. 2.2 Class of Vehicle on Third Party Liability Claims Where loss of use coverage is provided as a result of a claim against a liable third party motorist, a rental company will advise customers that they have a duty to mitigate their loss of use in regards to vehicle class. MPI will reimburse the rental company for an economy class vehicle unless the customer can demonstrate a need for a higher vehicle class. The class of the vehicle rented to the customer must not exceed the class of vehicle it is replacing. 2.3 Rental Duration Rental companies will: Explain to customers that the customer has an obligation to minimize the length of the rental to the best of their ability. Explain to customers that MPI will only pay for loss of use coverage up to the applicable prescribed limits. Notify MPI immediately if there is a delay in repairs due to a back-ordered part and provide the expected date of arrival for the part. Submit approval requests prior to the completion of vehicle repairs and return of vehicle. Monitor repairs with the repair shop and notify MPI of any unusual delays in the repair process as soon as possible. Page 4

6 The following table outlines MPI s allowance guidelines for common situations affecting the rental duration. Repairable Vehicles Non-driveable Vehicles Reason for Loss of Use Repair and paint labour time Weekend or Stat Days Unsuitable parts Road re-inspection Sublet Estimating Allowance Road Estimate Customer View Time Order initial parts Parts delay Duration Guideline Based on estimate Included in the calculation 2 days 2 days 1 day 5 days 2 days 2 days 2 days 2 days Total Losses Total Loss 5 days Confirm Price/Marginal 5 days Total Thefts Total Theft - Not Recovered 10 days (8 or more years old) 15 days (7 or fewer years old) Immobilizer Installation Customer View Time 1 day 2 days Page 5

7 3. Additional Fees and Charges A rental company must not charge the customer or MPI more than the applicable daily rate. Fee Type Notes Rules for Charging Customer Rules for charging MPI Excess Kilometres Provide a minimum of 150 kilometres per day at no extra charge. Allowed to charge customer 15 cents per excess kilometre. Not allowed to charge MPI for excess kilometres unless customer has ALE level 2 coverage. Must notify customer of excess kilometre fees at time of rental. If customer has ALE level 2, invoice MPI for the excess kilometres at the 15 cent/kilometre rate. The total amount invoiced to MPI must not exceed the ALE daily limit or policy maximum (currently $68/day, to a maximum of $2,040). Reduced deductible on rental vehicle Manitoba resident customers will not be responsible for the cost of any damages to the vehicle in excess of the basic deductible where that damage falls within the scope of coverage of the Autopac plan. Rental Vehicle Company may charge customer if they choose to reduce their liability below the basic deductible by way of a contractual agreement. Rental Vehicle Company must not contract out of valid Autopac insurance coverage on any vehicle by entering into any separate agreement between them and the Manitoba resident customer. Allowed to charge customers to reduce their liability lower than the basic deductible. Must advise customers that the sole benefit is the difference between the Basic $500 and the reduced deductible. Must also advise customers that they are responsible for the additional charges. Not allowed to charge MPI for deductible reduction unless customer has ALE level 2 coverage. If customer has ALE level 2, Rental Vehicle Company is allowed to invoice MPI for the reduced deductible. The total amount invoiced to MPI must not exceed the ALE daily limit or policy maximum (currently $68/day, to a maximum of $2,040).* Personal Accident Insurance (PAI) The only circumstance under which a charge may be levied to the customer with respect to personal accident insurance is where the protection offered is in excess, or for any item not covered through, the universal MPI Personal Injury Protection Plan (PIPP). Allowed to charge customer if protection is over and above PIPP. Must advise customers that the benefit is over and above PIPP coverage, and advise them that they will be responsible for the additional charges. Not allowed to charge MPI for excess coverage unless customer has ALE level 2 coverage. If customer has ALE level 2, Rental Vehicle Company is allowed to invoice MPI for the excess coverage. The total amount invoiced to MPI must not exceed the ALE daily limit or policy maximum (currently $68/day, to a maximum of $2,040).* Page 6

8 Fee Type Notes Rules for Charging Customer Rules for charging MPI Fuel Charges Additional Driver Fee Cost of fuel used. Rental companies usually charge customer for either: A full tank at a fixed price, agreed to at time of rental pickup, or The cost to top up the tank upon return of rental plus an administrative fee Fee to allow drivers other than the renter to operate the rental vehicle. Allowed to charge customers, but must notify them of responsibility at time of rental. Not allowed to charge customer for Additional Driver Fees. Not allowed to invoice MPI for fuel charges. Not allowed to charge MPI for Additional Driver fees. Driver fees related to age Fee to allow drivers above or below a particular age range (as defined by the Rental Vehicle Company) to operate the rental vehicle. Not allowed to charge customer for fees related to driver age. Not allowed to invoice MPI for fees related to driver age. Drop-Off Fee Fee for dropping off the rental vehicle at a different location than it was picked up at. Normally, this would only be applicable when the vehicle is rented in one jurisdiction and dropped off in another. This could occur where a Customer s vehicle is rendered undriveable as a result of a loss outside of Manitoba. Rental Vehicle Company should contact MPI Loss of Use Coordinator prior to arranging a rental vehicle that will be dropped off in a different jurisdiction. Allowed to charge customers, but must notify them of responsibility for the fee at time of rental. Rental Vehicle Company should contact the MPI Loss of Use Coordinator prior to providing a rental vehicle that will be dropped off in another jurisdiction. Depending on circumstances, MPI may or may not consider reimbursing the customer for such costs. Not allowed to charge MPI through the web portal. Depending on circumstances, MPI may or may not consider reimbursing the customer for such costs. Admin or Other Fees Rental Vehicle Company must not charge MPI or the customer for fees not listed above. This includes, but is not limited to the following: Vehicle licensing fee Energy recovery fee Policy coverage fee Airport access fees Administrative fees Not allowed to charge customer for such administrative fees. Allowed to identify Vehicle Licensing fees and airport access fees on internal billing invoices for regulatory and reporting purposes. These fees will not be additional fees charged to MPI and will not increase the MCTRA rate structure. Page 7

9 4. Authorizations for Rental Allowances by MPI 4.1 Timeframes for Submitting Authorization Requests A rental company must submit authorization requests prior to the completion of vehicle repairs and return of the rental vehicle. 4.2 MPI Response Times In most cases, the Loss of Use web application will notify you if your request was approved after you submit the initial request. If the request was not eligible for an automatic calculation or if you requested additional time, MPI will respond to your request within 24 hours (excluding holidays and weekends). 4.3 Pre-Requisites for MPI Authorization MPI will not authorize loss of use coverage until all of the following conditions have been met: The customer has reported the claim to MPI MPI has confirmed coverage MPI has confirmed liability (where loss of use coverage is due to a claim against a liable third party) 4.4 Rental Vehicle Company Follow-Up Requests A rental company must wait 48 hours before sending a follow-up request. Exceptions may be made if the customer is unable to supply a credit card, or similar form of payment guarantee. 4.5 Revoking Authorization MPI reserves the right to revoke the authorization for loss of use if it receives additional information which brings coverage or liability into question. In such cases, MPI will allow the rental company 24 hours to notify their customer that MPI revoked loss of use authorization. 5. Information Supplied by Rental Company 5.1 Information Required When Requesting Authorization Rental companies must provide the following information when requesting authorization for a rental vehicle in the Loss of Use web application: Claim number Rental agreement number Customer first and last name Rental vehicle class Rental vehicle plate number Rental start date Contact location Contact name Page 8

10 Upgrade reason (where vehicle supplied is not an Economy class) Relationship between the renter and policy holder for the damaged vehicle (where they are different) 5.2 Information Required When Additional Rental Days Are Requested A rental company must supply a valid reason along with any request for additional rental days. 5.3 Information Required When Requesting Payment Rental companies must provide the following information when requesting payment for a rental: Rental end date Rental duration (actual days used) 5.4 Rental Vehicle Is Exchanged For Another Rental Vehicle In cases where the customer exchanges one rental vehicle for another, the rental company must advise MPI of the change in vehicles. If the change to another vehicle results in a new rental agreement, the rental company must update the Loss of Use web application with the new agreement information If the replacement vehicle is in a lower rate class Rental companies must submit a new rental agreement to MPI through the portal for the replacement rental vehicle. MPI will then transfer the authorization for the remaining rental days to the new agreement at the lower daily rate If the replacement vehicle is in a higher rate class A rental company may submit a new rental agreement to MPI (with the higher rate for the remaining rental days). If approved, MPI will then transfer the authorization for the remaining rental days to the new agreement at the higher daily rate Billing MPI for Vehicle Exchange Date A rental company must not bill MPI twice in one day for the same vehicle. For example, if a customer returns a vehicle on January 1 at 10 a.m. and another customer rents the same vehicle that day, the rental company cannot bill MPI twice for January 1 for that vehicle, even though the vehicle was used by two different customers. Page 9

11 6. Claims on Damaged Rental Vehicles 6.1 Customer Responsibility for Damages A rental company will not hold a Manitoba resident customer responsible for the cost of any damages to the rental vehicle in excess of the basic deductive where that damage falls within the scope of Autopac coverage. 6.2 Rental Vehicle Company s Role in Claim Investigation A rental company will assist MPI in gathering the material facts surrounding the claim for damages. Examples of such assistance include: Obtaining an accident report from the renter when required Providing a copy of the rental contract to confirm that the date of loss is within the rental duration 6.3 Vehicle Claims MPI undertakes to use reasonable efforts to provide an estimate for repairs to drivable rental vehicles owned by MCTRA members within Winnipeg and Brandon regional areas within three business days. Where current capacity at the Service Centre or Claims Centre prevents prompt service, the MCTRA member may contact the Manager or Assistant Manager of the centre in order to expedite service. Subject to policy coverage, conditions and exclusions, MPI will not withhold estimate sheets for MCTRA members vehicle insurance claims without justification. 6.4 Rental Vehicle Insurance (RVI) Claims Refer to the Rental Vehicle Insurance Claim Process Flow (located at under Light Vehicles & Others > Policies & Procedures > Rental Vehicle Providers). 6.5 Downtime on Rental Vehicles What is Downtime? Downtime (also referred to as standby ) means a loss of revenue resulting from the loss of use of a rental vehicle through the negligence of a third-party motorist. Normally, a rental company is required to prove the amount of such a loss. MPI will forego this requirement of strict proof and pay downtime costs according to Section 6.5.3, provided that the rental company follows the guidelines below (Section to 6.5.7). A rental company must submit invoices for downtime to the adjuster for payment. Invoices cannot be submitted through MPI s Loss of Use web application. Page 10

12 6.5.2 Notice of Downtime A rental company must advise MPI of the possibility that a downtime claim may be submitted at the time the claim is reported. A formal invoice will not be required MPI Must Insure Liable Party MPI will only pay for downtime where a collision was caused by an MPI-insured third party. Downtime claims will be paid on a percentage of liability, based on the degree the third party is at fault. For example, if liability is resolved at 50/50, only 50% of the agreed downtime claim would be paid Third Parties Not Insured by MPI MPI is not responsible for downtime in cases where the liable third party is not insured by MPI (for example an out-of-province motorist). MPI will attempt to collect the rental company s downtime claim from the third party insurer, but if the insurer will not pay the claim voluntarily, MPI will not pursue collection Total Theft Claims Non-collision claims are not eligible for an MPI downtime payment. However, where a rental vehicle is stolen, a rental company may claim for the actual expenses incurred under their Autopac Basic loss of use coverage. Expenses are subject to a 72-hour waiting period Downtime Rates For downtime rates, see Replacement Vehicle Rental Rate Structure on MPI Partners. For vehicles outside of the documented classifications (large trucks, cube vans, etc.), a rental company should contact the adjuster. Provincial Sales Tax and the Goods and Services Tax are not applicable. These daily rates are representative of the fixed costs associated with vehicle ownership, and are not the full daily rental rates normally paid by an individual renting a vehicle Rental Vehicles More Than Three Years Old If the damaged rental vehicle is more than three model years old, MPI will pay a rental company $25.00/day Downtime Duration A rental company and the adjuster should work together to ensure that repairs are handled expeditiously, to minimize the amount of the downtime claim. Claims for downtime will commence from the date of the report of the accident to MPI (not from the date of the accident). Discretion may be applied in cases where it is not possible for a rental company to report the claim on the date of loss (for example, MPI Contact Centre closed due to a statutory holiday). Page 11

13 Repairable Vehicles For repairable vehicles, the downtime duration will be based on the MPI estimate. Loss reported date to first available estimate date. For non-driveable vehicles, this will include the period that the non-driveable vehicle sits waiting in an MPI authorized compound for the initial estimate. 1 downtime day will be allowed per 8 labour hours. Partial days will be rounded up to a full day. An additional day will be allowed for dry time if the damaged area requires painting Parts Delays Reasonable time will be allowed for the ordering and receipt of parts. Although MPI is not responsible for undue delays in repair of the vehicle due to the lack of availability of required replacement parts, MPI will work with a rental company to look for alternate solutions (e.g., repairing the part, using a recycled part, etc.) Total Losses Where the vehicle is determined to be a total loss, downtime will be allowed from the date of the accident report to MPI, to the date that MPI extends a reasonable offer of settlement. 7. Compliance with Business Rules 7.1 Penalties for Non-Compliance If a rental company is found to be operating outside of the rules contained in this document, penalties may be levied which may include: Canceling the ability of that company to direct-bill MPI Terminating that company s access to MPI s loss of use web portal 7.2 Retaining Copies of Rental Agreements A rental company must: Keep customer-signed copies of all rental agreements for a period of one year following MPI s payment for the rental. Provide copies of such rental agreements to MPI when requested. 7.3 Compliance Audits MPI retains the right to audit the rental agreement records of a rental company to ensure adherence to signed agreements and these business rules. Page 12

14 7.4 Duplicate Invoices Due to Overlapping Date Ranges MPI will regularly audit invoices to ensure that a rental company has not double-billed MPI for overlapping rental dates. For more information see Billing MPI for Vehicle Exchange Date. Where MPI records show that a rental company has billed MPI for overlapping dates, MPI will forward the applicable information to the rental company. The rental company will review its records and provide MPI with an explanation for the overlap within 30 days of being notified of the discrepancy. If the overlap cannot be resolved to MPI s satisfaction, the rental company will reimburse MPI for the extra charge. 7.5 Compliance by Employees A rental company will ensure that all of their employees, staff and other personnel comply with these business rules. 8. Miscellaneous Rules 8.1 Business Licence A rental company processing loss of use must have a valid business licence for the rental of vehicles, where applicable, for the area in which their business is located. Where a rental company is affiliated with a repair shop, MPI does not require the company to have a second business licence, separate from that of the repair shop. 8.2 Changes Related to Business A rental company must notify MPI in writing if the name, ownership or location of its business is changing. If it has advance knowledge of such a change, it must notify MPI not less than thirty (30) business days prior to the effective date of such change. 8.3 Compliance with Privacy Laws In processing MPI loss of use benefits, rental companies may collect, or have access to, customers personal information (name, address, contact information, etc.). The Freedom of Information and Protection of Privacy Act (FIPPA) imposes obligations on MPI to hold personal information, as that term is defined in FIPPA, in the strictest of confidence. FIPPA prohibits MPI from collecting, using, or disclosing personal information except in accordance with FIPPA. Rental companies processing loss of use for MPI customers must follow all FIPPA rules and regulation. 8.4 Compliance with Applicable Laws In addition to FIPPA, a rental company shall at all times comply with all laws which are applicable to their business and operations, and shall ensure that all of their employees, staff and other personnel do the same. Page 13

15 8.5 Training Upon MPI s request, acting reasonably, a rental company (and if MPI deems reasonably necessary, certain of the companies employees) must participate in training and re-training on the procedures and mechanics of the vehicle rental program. A rental company must do so at no additional cost to MPI. 8.6 Use of MPI Intellectual Property and Systems A rental company must not use any MPI names, MPI logos, or any other trademark, logo, business name, trade name which is owned and/or used by MPI (the MPI Intellectual Property), without the prior written permission of MPI. If they use any of the MPI Intellectual Property without first obtaining the prior written permission of MPI, MPI may refuse to do direct business with them.. In such cases, those rental companies must immediately remove the MPI Intellectual Property from their premises. Failure to immediately remove the MPI Intellectual Property from their premises may result in MPI initiating legal proceedings against them, including but not limited to, proceedings requesting injunctive relief. A rental company must comply with all procedures, technical requirements and security requirements related to their access to and use of any MPI computer systems, online systems, or other electronic systems (for example including, but not limited to, the Loss of Use web application). For greater certainty, MPI computer systems, online systems or other electronic systems include systems that are owned by MPI, hosted by MPI, licensed by MPI or otherwise operated by or on behalf of MPI. 8.7 Technology Requirements A rental company must be in possession of a functioning computer system with an internet connection in order to access the MPI Partners website and Loss of Use web application. Further, they must be able to produce electronic copies of invoices when requested by MPI. For system support contact MPI at Condition and Insurance of Rental Vehicles A rental company must rent vehicles to customers that are free (as much as reasonably practicable) from body damage, cleaned before each rental, and mechanically sound. All vehicles rented to customers must comply with all safety, environmental, mechanical and other standards prescribed by legislation or other applicable regulations or industry rules. All vehicles rented to customers must be insured through MPI and registered as a U-Drive. 8.9 Use of Own Registered Account Number and User Identification A rental company must always use their own registered account number and user ID, and they shall not use another rental company s registered account number or user ID. A rental company also shall not permit any other rental company to use their registered account number or user ID. The registered account number used for loss of use must be separate from registered account numbers used for other lines of business (e.g. repair work, towing, etc.). Page 14