Questions Raised About Air Bag On-Off Switch Installation Data
6 January 1998
Questions Raised About Air Bag On-Off Switch Installation Data
WASHINGTON, Jan. 6 -- In a petition to the U.S. National
Highway Traffic Safety Administration (NHTSA), the National Association of
Independent Insurers (NAII) is requesting adequate insurance company notice
when vehicle owners deactivate or modify their vehicle air bag systems and
seeks clarification on how NHTSA will to collect and distribute this
information.
Although NHTSA said they will publish the vehicle identification numbers
(VINs) of cars whose owners have received authorization from the agency to
permanently deactivate an air bag, they have not said how or when. NAII is
concerned that not only will purchasers of used vehicles have no way to tell
if a vehicle's air bag has been disconnected or altered, but that the ruling
released by NHTSA in November of last year is vague in the manner of how
insurance companies will be able to obtain the information.
The petition centers around a new ruling announced by NHTSA on Nov. 18,
1997, which allows people who fall into one of four categories to have on-off
air bag switches installed in their cars. If a vehicle owner falls under one
of the categories -- 1) cannot avoid placing rear-facing infant seats in the
front; 2) have a medical condition that places them at specific risk; 3)
cannot physically be situated 10 inches from the steering wheel of an air bag
-equipped vehicle; and, 4) those that often transport multiple passengers
(i.e. car pool) -- they must apply for permission from NHTSA for the
installation. Auto dealers and service outlets are expected to be prepared
to begin installing the on-off switches by Jan. 19. The rule went into effect
Dec. 18, 1997.
The Dec. 30 NAII letter sent to NHTSA Administrator Ricardo Martinez by
NAII Vice President of Insurance and Research Services Terry E. Tyrpin states,
"The installation of on-off switches will allow citizens to override safety
equipment that was designed and built into the vehicle to provide passive or
automatic crash protection. However, to NAII and its insurance company
membership, the final rule is flawed by the omission of procedures through
which insurers can learn whether an insured vehicle has an air bag on-off
switch.
"In view of the federal safety agency's current policy of permitting air
bag deactivation, the final rule will make it difficult for insurers to
continue to reward policyholders who own and operate air bag-equipped vehicle
models," Tyrpin explained. "Because air bags reduce fatalities and mitigate
the chance of serious head and upper body injuries in higher speed frontal
collisions, some motor vehicle insurers have implemented rate programs which
reward owners of vehicles having passive restraint systems with premium
discounts."
Tyrpin also noted that in several states, the insurance law specifically
directs insurers to provide these premium reductions. He said the discounts
are applicable on medical payments and personal injury protection (PIP)
insurance, coverages which can be purchased on an optional basis in most
states and that in 13 states where no-fault insurance systems are
administered, PIP coverages are mandatory.
"If the insurance market were to withdraw or abandon air bag rating
incentive programs, the effect on insurance premiums would be most noticeable
in those 13 no-fault coverage states," Tyrpin said.
NHTSA's deadline for accepting petitions for reconsideration on the air
bag on-off switch rule (40 CFR Parts 517 and 595) for Docket No. NHTSA-97-3111
RIN 2127-AG61 was Jan. 5, 1998.
The Des Plaines, Ill.-based NAII is a non-profit trade association
representing 565 property-casualty insurance companies countrywide. NAII
member companies account for approximately 35-40% of the motor vehicle
insurance premiums written in the U.S.
SOURCE National Association of Independent Insurers
