POLICY ADJUSTMENT CONSIDERATIONS

The overriding concern is that policy adjustments are the exception, not the rule. The key is to be reasonable and fair with all policy adjustments.

- Each case must be individually and very carefully weighed on its own merit.

- We must always ask ourselves, "What is a reasonable customer satisfaction step based on ALL of the facts of this individual case?"

- Is the owner included within the parameters of the Diesel Engine Class Settlement? If so, he is not eligible for a policy adjustment.

- Does the owner have an extended warranty or service contract that is still in effect? If so, the claim should ordinarily be handled under the warranty or contract and the customer should not be in the position of having to negotiate for a policy adjustment.

- Has this owner incurred a previous major repair expense?

- Is there any evidence of a mileage alteration?

- Is the quoted mileage of the failed component - or is it the actual odometer mileage of the vehicle?

- Is there any evidence of poor workmanship on previous repairs?

- Is the current owner the original owner or a subsequent owner? Second or third owners may not have purchased car with the same expectations about quality, reliability, durability, or performance as the first owner. Policy adjustments should reflect this difference.

NOTE: Don't hesitate to ask subsequent owners for a copy of their purchase agreement. (General Motors will generally not agree to arbitrate for more than the purchase price.)

A. Did the subsequent owner purchase the used car from a Pontiac dealer?

B. When did the subsequent owner purchase the car? Was it one year old or four years old when purchased?

- Is this the ORIGINAL engine in the car? Compare VIN of vehicle with VIN on the left front of engine block, below cylinder head. (Similar verification procedures should be applied on automatic transmissions.)

- Did lack of proper owner maintenance have a bearing on the failure?

- Sometimes it's beneficial to ask the customers what they think is fair.

- Today's consumers are quite familiar with "deductibles" because they have deductibles on their car insurance policies, home insurance policie,s, household appliance warranties, and service contracts.

- Owners generally prefer a "deductible" policy adjustment versus a "percentage split." (Also give the owner a "solid figure" quote on the maintenance items portion of their bill.)

- For discussion purposes, you may want to refer to the "Connecticut State Lemon Law" which provides that in case of a buyback, the allowance for use be pro-rated out, based on a 100,000 mile life expectancy of the vehicle.

- If the owner is demanding a new engine when it only needs a ring job,. . .then let the owner pay the difference between what you think is a fair adjustment for the ring job and the new engine "upgrade."

- If it is a question of engine replacement,. . .has the original engine already been disassembled and properly diagnosed?

- Remember,.....non-franchised repair outlets often do NOT use revised divisional procedures, technical updates, and Corporate training; therefore, this could contribute to the owner's overall cost of repair.

- When reviewing customer reimbursement requests from non-franchised repair outlets (especially transmission shops), always try to determine if the repair charge also includes the cost of an extended or lifetime warranty. This portion of the bill should never be considered for a policy adjustment.

General Motors bulletins are intended for use by professional technicians, not a "do-it-yourselfer". They are written to inform those technicians of conditions that may occur on some vehicles, or to provide information that could assist in the proper service of a vehicle. Properly trained technicians have the equipment, tools, safety instructions and know-how to do a job properly and safely. If a condition is described, do not assume that the bulletin applies to your vehicle, or that your vehicle will have that condition. See a General Motors dealer servicing your brand of General Motors vehicle for information on whether your vehicle may benefit from the information.