Home Search Print

Section A – Warranty Policy Manual

A.7 WARRANTY PERFORMANCE MEASUREMENT

A.7.2 WARRANTY COUNSELLING PROCESS - CHARGEBACK

Claims reviewed by the Company and found to be non-compliant with the Warranty and Policy Manual are subject to chargeback based on the below chargeback matrix.
The implementation of the WCP Chargeback Matrix provides a staged approach to chargeback in that a limited number of non-compliant areas are subject to chargeback during a Step 2 - Warranty Review. Charge backs resulting from a Step 2 - Review are based on the face value of each claim reviewed. This approach has been adopted to assist Dealer education and understanding of the Warranty and Policy Manual requirements.
In a Step - 3 Warranty Audit and a Step 4 - Warranty Follow-up Audit, ALL claims found to be non-compliant with this Manual are subject to Chargeback. These claims will be reversed at face value or extrapolated, depending on whether the audit is a 100% audit or a sample-based audit.

A.7.2.1 Warranty Counselling Process Chargeback Matrix:

WCP Steps:
Step 2 – Warranty Review
Step 3 – Warranty Audit
Step 4 – Warranty Follow-up Audit
FINDINGS
Repair Order / Supporting Documents missing Applicable Applicable Applicable
False claim (as listed in the Unusual or False Claiming Practices) Applicable Applicable Applicable
AUDIT
All non-compliances with the Warranty and Policy Manual including those listed in the “Warranty Counselling Process Chargeback Checklist” Not applicable Applicable Applicable

Note: For the full list of items that are subject to disallowance as part of the 4-Step WCP, please refer to the checklist below.

A.7.2.2 Warranty Counselling Process Chargeback Checklist

  • Original documentation in support of the claim is not available
  • Repair/component claimed is not covered by any applicable warranty
  • Clock time does not support the repair because of one or more of the following reasons:
    • Unsupported Actual Time
    • Technician clocked on to multiple Repair Orders simultaneously
    • Repair unsupported by the technician’s pay record(s)
    • No Technician time clocking available
    • Actual Time claimed is greater than the Clocked Time supports
    • Elapsed Clocked Time is not a good reflection of the time taken to complete the repair
    • Clocking is not cross-referenced to the front of the Repair Order
    • Individual Clock Time is not recorded
    • Unauthorized alterations to the Clocked Time are evident
  • Unauthorized add-on repair present
  • Unauthorized extension of the repair is present
  • Sublet repair(s) documentation does not support the repair
    • Non-Specialist repair exceeds the Dealership cost
    • Specialist repair charges exceed the SLTS/LOP available
    • Sublet documentation does not support the repair undertaken, i.e.
    • Fault, Cause and Rectification do not support the repairs
    • Labour hours are excessive or missing
    • Material cost is excessive or missing
    • Materials claimed are not related to the repair
    • The date of the repair and/or the mileage are inconsistent with the Repair Order
    • The Sublet document fails to provide cross-referencing with the vehicle identification (VIN or registration number) or the relevant repair order number
    • Non genuine parts were used where genuine parts were applicable
  • Documented repair procedure was not adhered to
  • Part issued not relevant to the repair carried out
  • Incorrect Labour Rate calculation applied
  • Duplicate claim
  • Incorrect or inappropriate prior repair at the same Dealership
  • Rectification of faulty workmanship claimed
  • Technician report does not support the repair claimed
  • Unsupported part(s) warranty claim
  • Displaced part(s) not retained as per the Warranty Part Retention policy
  • The retained part doesn't support the claim
  • Excessive SLTS/LOP claimed
  • Partial or overlapping of warranty SLTS/LOP incorrectly claimed
  • Incorrect Claim Type used to gain reimbursement
  • Parts used not claimable
  • Inappropriate Emergency Repair claimed
  • New vehicle storage & protection policy not adhered to resulting in vehicle deterioration and damage being claimed
  • Non-genuine part(s) claimed as genuine part(s)
  • Components replaced where an approved, more cost-effective repair was possible
  • Miscellaneous item(s) claimed exceeded the invoiced price
  • Repair not performed as claimed
  • Claim overpaid
  • Customer Loyalty Program, Goodwill or After Warranty Assistance claim unsupported by the details
  • Customer charged for the repair whilst a Claim was also submitted to the Company
  • Consumables/Workshop Supplies claim is unsupported
  • Odometer or vehicle details deliberately recorded incorrectly in order to support the Claim
  • False or fraudulent actions/documentation in support of, or in connection with, a Claim
  • Authorized Parts and Service Sub Agent (APSSA) policy not complied with (where applicable), Dealers with APSSA.( Refer to Section Authorized Parts and Service Sub Agents)