Warranty - Required Claim Submission Procedures
File In Section: Warranty AdministrationBulletin No.: 62-05-04
Date: April, 1997
WARRANTY ADMINISTRATION
Subject:
Operating Procedures
Models:
General Motors Passenger Cars and Trucks
The following list contains eighteen points taken, in part, from the 1997 GM Service Policies and Procedures Manual dated 10/96, the WINS Claims Processing Manual (e.g. Claim Preparation, Routing, Authorization, Filing, and Submission), and in some cases, just a recommended process to follow. Because warranty administration is governed by GM Service Policies and Procedures, dealers should verify they have process controls in place to ensure the policies and procedures are being followed in their daily warranty administration. The benefit of doing so guarantees compliance with the GM Service Policies and Procedures.
Important:
Most information in this bulletin relates to "Document," "Hybrid," and in most instances, "Electronic" dealer repair order systems. However, the policies and procedures Articles referenced in this bulletin should be checked for information that may be more specific to "Electronic" systems.
Recent dealer warranty reviews have revealed substantial deviations from these practices (P&P) and in some cases a lack of familiarity with these requirements. Accordingly we have extracted eighteen of the most common areas of deviation and captured the essence of the requirements in this bulletin. Additional and specific references are provided on each point to further detail these procedures.
1. ACCURATE AND COMPLETE REPAIR ORDER INFORMATION: All repair order header information must be completed accurately, including the in-service date and the odometer reading taken directly from the vehicle by the person writing the repair order. This is necessary to determine if the vehicle is within warranty and if a deductible applies. The name of the owner or the name of the operator of the vehicle must be included on the repair order. (Reference GM P&P Articles 1.6.2.b, and WINS CPM Section II.C.1.A.-K.)
2. ACCURATE AND COMPLETE CUSTOMER CONCERN DESCRIPTIONS: A clear and concise repair order write-up is required with a brief description of each customer concern. Customer problem analysis is the process of translating the customer's problems into a symptom which is the responsibility of Service Management and/or their service advisors. Repair diagnosis time is published in the Labor Time Guide with appropriate labor operations. Customers must not be charged for diagnosis time related to warranty repairs. Vaguely written complaints such as "engine stalls" or "check brakes" will not be accepted. (Reference GM P&P Articles 1.5.4, 1.6.2c WINS CPM Sections II.C.2.A.-O. AND IV.C.2.I.&J.)
3. CLEAR UNDERSTANDING OF CHARGES: There must be a clear understanding of responsibility for charges at the time the repair order is written and while the customer is present. Service Management must authorize any changes in responsibility for charges prior to the work being performed. The reason for these changes and the signature of Service Management giving authorization must be recorded on the shop copy of the repair order. If additional charges will be made to the customer, the customer must be called for authorization prior to performing the work.
4. CUSTOMER'S SIGNATURE REQUIRED: A customer's signature must be obtained to authorize customer pay and/or warranty repairs. If the customer is not present when the repair order is generated, then a signed authorization must be attached to the R.O., for example, early bird envelopes or hand written "prep sheet". If the customer drops the vehicle off and provides authorization by telephone, the name and telephone number of the person giving the authorization and the date and the time of authorization, along with the signature of Service Management, must be included with the customer's instructions. For vehicles in dealer inventory, all repairs must be authorized and signed by Service Management prior to the work being performed. This includes warranty repairs done to new vehicles during the PDI process. (Reference GM P&P Articles 1.6.1.c, 1.6.2.b, WINS CPM Section II.C.1.H.)
5. SEPARATION OF THE RO SHOP COPY: Following authorization (signature) by the customer, the shop copy should be separated from the other repair order copies. The shop copy is to be given to the technician as the working copy. The original copy bearing the customer's signature must be retained as outlined in the current GM Service Policies and Procedures. This is regardless of which type of repair order or repair order/invoice system is used by the dealership. (Reference GM P&P Article 1.6.2.c.2.)
6. ACCURATE AND COMPLETE CAUSE AND CORRECTION: Each technician is to note what was found as the cause of the customer's concern and what was done to correct the concern. The cost of labor and the hours paid to the technician must be clearly shown on the time ticket and referenced to the repair order. (Reference GM P&P Article 1.6.2 c&g, WINS CPM Section II.C.2.C.,H., and J.)
7. APPROVED AND RECORDED STRAIGHT TIME: If unusual circumstances are encountered which would require straight time, the technician is to contact Service Management for authorization prior to the work being performed. Service Management must authorize the technician to proceed on a straight time basis and sign the "on-time," noting the reason for the authorization. Separate on/off time recording is required for each straight time operation performed. Service Management must justify the reasonableness of the straight time request and provide an explanation on the shop copy along with the authorization signature. Technician "inefficiency" or "lack of training" is not sufficient justification for straight time. (Reference GM P&P Article 1.6.2 d&g, WINS CPM Section IV.C.2.J.&K.)
8. APPROVAL REQUIRED FOR ADDITIONAL WORK: If, in the course of correcting a customer concern, a technician discovers an additional potential warranty repair that the customer did not "comment" about, Service Management must be contacted for authorization prior to the additional corrective warranty repair being performed. Service Management must verify the need for the additional warranty repair and must add the warranty operation to the shop copy, stating the reason necessary and authorize by signature adjacent to the operation. In cases where the additional necessary work will result in an increase of charges to the customer, the customer must be contacted for authorization. (Reference GM P&P Article 1.6.2d.)
9. PROPER DOCUMENTATION AND RETENTION OF WARRANTY PARTS: All parts used in repairs must be cross-referenced (line coded) on the repair order to the specific repair to which they apply. All warranty parts removed must be returned to the parts department for retention and disposition as required by the current GM Service Policies and Procedures Manual. All replaced parts with visible defects must have the defective area clearly marked. Acknowledgment of receipt of the used parts by the parts department must be clearly indicated on the shop copy of the repair order. Repair operations that require parts for proper repair will not be accepted without supportive replaced parts or an explanation justifying the repair. (Reference GM P&P Article 1.6.2e, WINS CPM Section II.C.2.L.)
10. TRANSFERENCE OF WRITTEN CAUSE AND CORRECTION: The cause of failure and correction as stated by the technician on the shop copy must be transferred to all other copies of the repair order or invoice. If separate repair order/invoicing systems are used, it is not necessary to transfer the information to the original write-up copy of the repair order. However, when transferring the information to an invoice, the phrase "added operation" must be included next to each operation that was added after the initial repair order write-up, and all items originally entered on the repair order at the time of write-up must be accounted for on the invoice. (Reference GM P&P Article 1.6.2.i, WINS CPM Section II.C.2.C.)
11. ACCURATE SUBLET CHARGES AND RECEIPTS: Sublet charges cannot exceed the amount a dealer would have been paid if the work was performed by that dealer using GM parts and published GM labor times or net cost to dealer, whichever is lower. Only the original sublet receipt will be accepted and must include repair order number and VIN. Shop supplies are not to be claimed on a warranty repair order. (Reference GM P&P Articles 1.21n, 1.5.7, 1.5.9a, 1.6.2h, WINS CPM Section II.C.2.M. AND IV.C.2.L.)
12. ACCURATE LABOR OPERATION NUMBERS AND TIMES: Service Management is responsible to ensure that the proper labor operation and labor time is recorded on the repair order. There must be no more than one labor operation per customer complaint. Multiple repair cases for one customer complaint will be considered to be added operations. The Dealer is responsible for the satisfactory completion of all repair work claimed for warranty credit. If a repair of the same item is needed again as a result of improper inspection, diagnosis, or workmanship, the repair is to be classified as "shop comeback" and is not subject to any additional warranty claim payment. (Reference GM P&P Articles 1.5.11, 1.6.2g, 1.5.5, WINS CPM II.C.2.)
13. CLOSURE OF REPAIR ORDERS IS SUGGESTED: It is suggested when repairs are completed and/or replacement parts are ordered and the vehicle is safely operable, the repair order must be closed and processed through the dealership's internal accounting procedures. Revisions to invoices must not be permitted. Any changes to final invoices must be made using established accounting procedures to account for all adjustments.
14. SERVICE MANAGEMENT APPROVALS: Each dealer must designate one person responsible and held accountable for all authorizations and approvals issued by Service Management. Typically, this would be the service manager or director. When portions of authorization responsibilities are delegated to other members of Service Management, those who become empowered must be salaried members of the dealer service management staff, responsible for supervision of employees and the performance of the service department. Service technicians, claims administrators, other support, or hourly personnel are not to be empowered for these type of management approvals. All such delegation of authorization and approvals is to be monitored by the Service Manager or Director, on a routine basis, for compliance with Program Guidelines and GM Service Policies and Procedures. All approval codes applied to warranty claims must be approved and signed by Service Management prior to claim submission. The approval code, date approved, dollar/line amount, and signature must be recorded on the warranty claim copy. (Reference GM P&P Article 1.6.2.d.)
15. COURTESY TRANSPORTATION PROGRAM ADMINISTRATION: Courtesy transportation guidelines state the customer is eligible to receive a loaner or overnight rental vehicle any time an eligible vehicle is brought in for a warranty repair and the nature of that repair requires more than one business day. A copy of the rental agreement or other receipts (i.e., Cab, service station receipt for gasoline) documenting the transportation expense is to be attached to the warranty copy of the repair order. For shuttle, a notation should be entered on the face of the warranty repair order stating "shuttle required". Prior wholesale authorization is required anytime a courtesy vehicle is provided to a customer for six days or more; Cadillac four days or more. When calculating the number of days a vehicle has been in use, a day is defined as one 24 hour period based on time of day the courtesy transportation vehicle is released to the customer. Scheduling service visits late in the afternoon when service will not be performed until the next work day does not constitute an overnight repair, unless the vehicle is inoperative or a safety related concern is present. Some dealers have agreements with rental companies that provide a "rebate, discount or other allowance" for rental vehicles used for non-warranty related repairs. General Motors expects these allowances to be applied on eligible courtesy transportation claims (Reference GM P&P Article 1.4.14, Warranty Administration Bulletin Number 680502A.)
16. PARTS EXPEDITING PROGRAM ADMINISTRATION: Parts expediting guidelines require that if it has been determined a vehicle needs a part and the dealer does not have the part in stock, every attempt should be made to obtain the part locally utilizing the dealer trade portion of the parts expediting program. If the part is unavailable locally, the Parts Manager should inform the Service Department that the part will need to be ordered from GMSPO. Service Management should determine the level of urgency and inform the Parts Department to order the part either CSO-3 or CSO. If the part is on national back order, a SPAC case should be initiated. In both cases, dealer trade and overnight delivery, Service Management must initial the repair order. (Reference GM P&P Article 1.5.17d, Warranty Administration Bulletin 480502A.)
17. USE OF CUSTOMER CONCERN NOT DUPLICATED: Customer concerns that may be addressed by "Service Management" and/or Service Consultants in the service reception area are not eligible for consideration under these labor operations. ONLY customer concerns that require the skills of a "Trained Technician" would be eligible for claim consideration. Customer concern not duplicated (*9995) should only be used in conjunction with a customer originated concern and only when inspection reveals that no corrective action is indicated during diagnosis. Vehicles in dealer inventory, new or used, are not eligible. Customer concern not duplicated usage must be reviewed and approved by Service Management, with signature on the R.O. prior to claim submission. These labor operations must not be used in conjunction with a repair labor operation of the same group (i.e. D9995 with D4440) on the same repair order. Technician must be properly trained in the area being diagnosed. Additionally, these labor operation numbers provide for a range of labor time that would be submitted as regular hours. Unlike flat rate time, where the full amount of published time would be claimed, only the technician's actual time dedicated towards duplicating the customer's concern should be claimed. Reference GM P&P Article 1.5.5.)
18. DOCUMENT AND RECORDS RETENTION: All documents and records must be retained as required by the current GM Service Policies and Procedures. Vehicle history files must be maintained in a manner whereby complete information is quickly and easily retrievable for review by dealership personnel with customer and/or division personnel. The customer must be provided with a copy of the warranty repair order covering any warranty or policy adjustment made to the vehicle. This copy must reflect both parts and labor required to fully complete the necessary repair. (Reference GM P&P Article 1.6.3a, b, and c.)