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fact that counterfeiters can
operate without comeback
and accountability.
The image conscious society
today looks towards brands
as a sign of reassurance to
the product’s quality and
manufacturer accountability.
People are unfairly judged
by the car they drive or the
clothes they wear but they
all share a common goal and
that is association. People
buy a brand to be associated
with the chosen company,
product or service.
Counterfeiters recognise
this and use this method to
ply their trade. They play on
the simple fact people will
always try to buy branded
products where possible,
as they are an expression of
who we are.
The plain message really is,
think before you buy. Don’t
supply your own parts, leave
it to the experts!
Why Counterfeit Car Parts Are
A Real Liability for Garages
Written by Callum Watkins, Digital Marketing Executive at 1st Choice Insurance
With reports of an increasing number of counterfeit car
parts entering the supply chain, garages and mechanics must
be more concerned than ever. This article will outline why
motor traders must have a strong liability insurance policy in
place to protect their operation.
The Counterfeit Car Market In The UK
Counterfeit car parts are nothing new. The BBC reported
what started as a £300 million industry in 1994 had become
a £3 billion industry by 1999. In 2018, the size of the industry
is difficult to comprehend. The European Union Intellectual
Property Office estimated the counterfeit tyre and battery
market to be over €2 billion, and that doesn’t cover the most
commonly counterfeit parts.
So, why are so many counterfeit car parts in the supply
chain? As new materials and technologies improve, criminal
gangs have become more sophisticated. Even experienced
mechanics can struggle to tell the difference between what’s
genuine and counterfeit. This has led to counterfeit parts
becoming a lucrative, globalised business.
The UK government is leading an effort to unite industry
players and beyond to highlight the dangers counterfeit car
parts pose to consumers. Some key names include Audi,
BMW, Amazon, eBay, Motor Sports Association UK, UK Police
and the Intellectual Property Office.
The Dangers Of The Counterfeit Car Parts Market
According to Illcittrade.com, a cross-government attempt
to monitor the global black market, the most commonly
counterfeit products in supply are filters, brake pads, lights,
window wipers, wheel rims, tyres and airbags.
Clearly parts such as brakes and lights, if not manufactured
to the correct standards, pose a real threat to consumers and
road safety. Lights can fail, and brakes can seize, leading to
a fatal accident in no time. This is adding danger to Britain’s
already over congested roads.
Double Check Your Liability Insurance Policy
Garages who fit counterfeit products can be held liable in
the event of serious injury or even death, even if they did not
knowingly fit faulty products. Increasingly, consumers are now
asking garages to fit their own ‘cheaper’ parts in a bid to save
money. The Government recommends garages should be
reluctant to fit them to protect themselves and their customer.
Motor traders should all have employers, public and
product liability including service indemnity insurance
policies. Employers liability covers claims for damages made
by employees or the public for damages caused by your
employees. Public liability will protect you against claims made
for damages by the public, and product liability will protect you
against claims made because of products you have fitted. This
includes products resold from the manufacturer.
Failing to have insurance in place can be fatal. If a customer
is injured or killed following work you have completed, even
if you had no idea the parts installed were counterfeit, you
could be liable for thousands, possibly millions of pounds in
compensation. This could also mean criminal charges. Having
a strong liability policy in place is the best way to protect
yourself and your business.
Seek Advice!
We recommend you always check you have a strong policy
in place to protect you against counterfeit car parts. If you
would like more advice or start a new liability insurance policy,
talk to 1st Choice Insurance or call 0800 078 7003. We’re
motor trade insurance experts who are happy to help.
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