Claims News Service, Nov. 21, 2:35 p.m. EST — The LouisianaLegislature narrowly passed a bill that requires all vehiclesdetermined to be “total” losses as a result of recent flooding tobe crushed.

“This bill is not the solution to deal with the flooded vehiclesissue in Louisiana,” said Greg LaCost, assistant vice president,regional manager and counsel for the Property Casualty InsurersAssociation of America (PCI). “While PCI believes that contaminatedvehicles should be destroyed for the health and welfare of thepublic, HB 11 goes well beyond that. It is destructive to Louisianacommerce and consumers by not limiting itself to vehicles that aredangerous to the public. While vehicles contaminated by salt wateror biohazard materials should be disassembled and taken off theroads, HB 11 would result in the destruction of thousands ofvehicles that could be salvaged.

The bill will not afford consumers the ability to fix or keeptheir totaled vehicles if they have suffered damage to theirelectrical system, power train, or computer, especially with oldermodel vehicles. If a consumer has a car worth $2000 with a $500deductible, and the car suffers computer damage in the amount of$1500, under the current law, the insured could pay the deductibleand the carrier could fix the car for the consumer. Under the newproposal, the consumer would be paid $500 and would be without acar.

Current Louisiana laws regarding flooded vehicles are strongerthan the rest of the country as they require a specific disclosureof a vehicle being involved in a flood prior to any sale. No otherstate has required crushing flooded vehicles, but other states havesalvaged and flooded vehicle title laws. Louisiana was consistentwith the country's views on flooded vehicles by the passage of asalvage and branding law which requires “flooded salvage” to beplaced permanently on the flooded vehicle's title.

“While car dealers and manufacturers will benefit, Louisianaconsumers, insurers, and rebuilders will suffer from the passage ofthis bill,” added LaCost.