Motor Insurance Industry News

THE THEFT OF CATALYTIC CONVERTERS
You probably weren’t expecting that answer and let’s face it, it does seem quite extreme but this is a real and ever-increasing threat to today’s motor traders. The theft of catalytic converters has not only arrived in the UK, it is a current and growing part of the crime scene.

Most modern cars are fitted with catalytic converters, a pollution-control device hooked up to the exhaust system on a vehicle to reduce harmful emissions from the engine. There isn’t much metal in a catalytic converter. But the catalyst – which makes a catalytic converter work - can cost thousands of pounds per ounce. It is typically made up of three precious metals - platinum, palladium and rhodium.

Although only very small amounts of these metals are used in a catalytic converter, the value of these metals has risen by between half and six times in the past two years, making them a target for thieves.

It has been agreed that the following additional line will be added to the Limitations as to Use section of the motor trade Certificate of Motor Insurance:

Now the Association of Chief Police Officers of England, Wales and Northern Ireland (ACPO) has teamed up with the British Metals Recycling Association (BMRA) to fight the crime.

Experts say a thief can remove a converter in a few minutes and sell it for up to £150.

Hot Cats

As air quality rules tighten, manufacturers increase the amount of catalyst metals to keep up. This demand drives the price up, making catalytic converters doubly attractive.

"The reason these thieves are stealing them is because it’s easy," says Andrew Miller, manager risk control surveyors, Allianz Insurance plc.

"All thieves have to do is spend a small amount of time amongst the vehicles on a forecourt, loosening some bolts and a short while later they can be driving away with a dozen or so catalytic converters". Of course many thieves are not so considerate and use a portable reciprocating saw, damaging the exhaust systems still further in the process.

Fairly typical examples of such thefts are incidents involving eight cars on one site, £5,000 worth from another garage, 40 units from another area, and so it goes on. It is not unusual for dealers to suffer repeated attacks on their displayed vehicles, making this a real annoying and costly new crime.

The fact so many are disappearing does not shock Miller. "With the price of the scrap couple with the value of the part, and how easy it is to steal, I’m not surprised at all."

Cat Protection

The safest option for your clients to protect their stock is to keep it locked indoors overnight. If this is not possible then they need to park cars on a well lit, safe and secure forecourt, preferably covered by CCTV where a stranger with a saw or other instrument would be instantly noticed. The quieter and more isolated the business is, the greater the chance of theft.

Clients should evaluate their premises as well; each commercial unit is unique. Its location, local populous, type of buildings and perimeter, business and stock type etc, will have a bearing on its security needs, so each site needs its security to be tailored to suit.

Security is often a balancing act of the possible, practical, economic and necessary, and even then your clients may not get it right first time. It is something that has to be constantly monitored and reviewed against the background of the ever changing country we live in.

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