Canadian Underwriter
Feature

THE AIR OUT OF THE BAG


May 1, 2000   by Vikki Spencer


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Airbags recovered from written-off vehicles will be used for collision repairs in British Columbia, likely before the end of the year, says a researcher at the province’s public insurance organization. The decision follows testing on salvaged airbags conducted by the Insurance Corporation of British Columbia (ICBC) which shows the bags are a safe alternative to the new product. “The net result [of the tests] was that all of the salvage bags performed with the same characteristics and force as the new bags,” says John Gane, manager of vehicle safety research at ICBC.

Various qualities, including force and speed of deployment, were compared between the salvage bags and original product from several manufacturers, using a new test procedure developed by ICBC. “There were no problems determining that [the salvage bags] were safe. But there were some other issues raised.” Among them included the need for special training on storage and shipment of airbags, which are considered a hazardous material. Also, ICBC is currently working with the province’s auto repair industry to implement training programs on used airbag installation. Testing revealed it was all too easy to install the wrong airbag in a vehicle. “There are some bags that will fit into several models, but are wrong for a specific car,” explains Gane. “You could think it was right, and it would look right, but it wouldn’t be the right one.” New interchange manuals, which include airbag specifications, will also help clear up confusion about which bags can be used in which vehicle models. Gane expects salvaged airbags will be in use shortly. “Once we get [the training] done, there’s no reason we can’t go ahead.”

Developing a new test

Industry interest in ICBC’s results was widespread, partly because the test is the first of its kind. While airbag testing is common enough, there was no example of a test comparing new and used airbags for ICBC researchers to follow. “To my knowledge, no one had done this before. We had to do this testing from scratch.”

Equipment used by Volkswagen in Germany to test the force of airbag deployment formed the basis for ICBC’s testing. VW’s test was used to respond to concerns about the potential danger of airbags to children and shorter drivers. ICBC’s project received support from auto wreckers, who stand to profit from new business with the use of salvage airbags.

“The auto recyclers across Canada are in support of this, to the point of supplying us with airbags [for testing purposes],” Gane comments. Private insurers from across the country also participated by supplying ICBC with bags for testing.

Salvaged airbags could bring about significant cost savings for insurers in terms of reducing physical damage claim costs. The escalation in price of original vehicle manufacture parts has been a significant contributor to the cost-rise in auto claims. Gane admits, however, that the exact savings ICBC expects to make by piloting the use of salvaged airbags is still unknown. That said, he points out that the cost of salvaged bags is roughly half of that of the new product. “We think there are about $4 million worth [of airbags] in B.C. being replaced, so that’s $2 million in savings.”

Manufacturers not impressed

When ICBC announced its intention to undertake the testing in early 1998, auto manufacturers came out strongly against the use of salvage airbags. Safety was cited as the main concern, says Paul Copses, director of sales and marketing at GM Canada. “I would like the opportunity to sit down with any insurer considering applying used airbags in collision repairs to discuss some of the dangers involved,” he had commented at the time. And, despite the positive results of ICBC’s used airbag testing, Gane confirms that auto manufacturers still stand opposed to the project. “They [auto manufacturers] still haven’t changed their position. I’m not sure they have an incentive to change [their viewpoint]. They stand to get no benefit [if salvage bags are used], being that they’re the only supplier of new product.”

ICBC’s test results have not been officially released, pending set up of the training program, Gane observes. “The project is still under way in terms of training, we’re really just finished phase one.”

Despite concerns of auto manufacturers, the Insurance Corporation of British Columbia (ICBC) has gone ahead with plans to use salvage airbags in collision repairs, saying a new test proves recovered airbags are just as safe as the original product.


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