WTY201709R5

Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
Issued Date
June 22, 2017
(Update September
1, 2017)
This Warranty Bulletin accompanies TSB SC147 Theta II Engine Inspection and/or
Replacement and is provided to dealers for specific guidance with claim administration
and processing of SC147 warranty claims and covers the following repair scenarios:
1. Engine Inspection Result: NO PASS (engine replacement needed)
2. Engine Inspection cannot be completed (engine replacement needed)
3. Engine Inspection Result: PASS (no engine-related issues identified – no engine
replacement needed)
4. Engine Inspection Result: PASS (a different engine-related issue is identified –
engine replacement needed)
Recall Documentation
Documents pertaining to SC147 can be found on KDealer>Fixed Operations under the
Recall & Service Campaigns tab as shown below, other than the Technical Service
Bulletin which is available on KGIS:
1
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
Issued Date
June 22, 2017
(Update September
1, 2017)
Authorization of Claims Processing for SC147
Please see the table below for specific handling procedures regarding SC147
claim authorization:
Scenario
1
Campaign - TSB #
SC147 Case for
Warranty
Authorization
TEST- NO PASS
Description
Action Required
Engine Test
Completed –
NO PASS
R&R Engine
No TL PWA or involvement needed – claim will be
auto-approved if a NO PASS test record is received via
KDS “Special Inspection” feature.
TL PWA required for all dealers – Video of condition
required*
2
Campaign - TSB #
SC147 Case for
Warranty
Authorization
NO TEST
Engine test
cannot be
completed due
to engine seizure
or other engine
failure (won’t run
long enough to
complete the test)
3
Campaign - TSB #
SC147 Case for
Warranty
Authorization
TEST PASSOTHER
CONDITION
Engine Test
Completed –
PASS, but other
engine condition
requires engine
replacement
Engine
Replacement
AFTER SC147
Recall is
Completed
Engine
Replacement
Required but
SC147 Inspection
already
completed from
prior visit
4
Video requirement examples below are for illustration
purposes, individual requirements will vary based upon
the condition reported:
 Video should be continuous and show the VIN
(most convenient VIN plate) and pan to show the
engine condition
 For engine seizures, attempt to turn over engine with
breaker bar in video
 For hole in engine block, show hole in video
 For engine smoking condition (piston ring sealing),
show smoke in video.
TL PWA required for all dealers– Video of condition
required*

The requirements for NO TEST to obtain
authorization will apply
The claim should be submitted as NO PASS
engine replacement

TL engine PWA process applies to all dealers
regardless of DSA status.

Repairs will be performed using SC147 Parts (QQK
Engine Part) & Labor Operation code for engine
replacement (no test)
Warranty Claim will be submitted under additional
campaign SC147A (VIN will be added based upon
TL PWA approval)

*KDS Video Capture & Upload Process is available on the KGIS News Center,
as well as the SC147 section of KDealer.com.
2
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
SC147 Warranty claim information:
Please note Optima engine part number updates
3
Issued Date
June 22, 2017
(Update September
1, 2017)
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
4
Issued Date
June 22, 2017
(Update September
1, 2017)
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
5
Issued Date
June 22, 2017
(Update September
1, 2017)
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
6
Issued Date
June 22, 2017
(Update September
1, 2017)
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
Issued Date
June 22, 2017
(Update September
1, 2017)
Sublet Expenses that are allowed on SC147 Claims for Engine
Replacement:
Sublet
Type
Sublet Type
Description
Sublet Type Policies/Requirements
Sublet
Limits
X1
Other
$16.50
X2
Engine Oil Top
Off
X3
Engine Oil
Reimbursement
X4
T2
Carrying Cost
Reimbursement
Towing
Reimbursement for 5 quarts of oil when completing the
“LOF” portion of the inspection process. Please see oil
type usage policy information below.
Reimbursement for up to 2 quarts of oil to complete
initial engine inspection (if necessary). Please see oil
type usage policy information below.
Reimbursement for additional oil necessary when
completing “Engine R&R”. (May only be claimed with
Engine R&R claim). Please see oil type usage policy
information below.
To Be Determined (this Warranty Bulletin will be
updated in the near future)
Any towing expense related to a SC147 repair can be
submitted as a sublet. A copy of the tow bill must be
attached to the repair order hard copy. Tow bill must
indicate miles towed, VIN, customer name location of
pick-up and total cost.
RX
Rental Cars
Safety concern rental type- A WRTY115 Form is NOT
needed for SC147 rental claims nor is DPSM
authorization required. However, RO, rental car
invoice, copy of Parts Order Invoice Screen and Parts
Availability Inquiry Screen will need to be attached to
the claim prior to submission.
$5000
$6.60
$19.80
TBD
$1000
Additional Policy Information for SC147 claims:

Additional Engine Related Components: If replacement of any engine
related components is needed to complete the inspection in addition to
consequential damage from engine failure (i.e., intake manifold, exhaust
manifold, muffler gaskets, turbocharger, turbocharger oil feed lines, gaskets,
starter, etc.), these components should be covered (Warranty or Goodwill)
using a separate claim under a new line using the same Repair Order.

Additional Diagnostic or Repair Time: Additional time for “extraordinary”
circumstances (i.e., seized engine removal, damaged components, etc.) is
allowed and should be claimed following normal service policy procedures as
described in Section 9.5.4 of the Service Policies & Procedure Manual. A
separate claim under a new line on the same Repair Order with the additional
time will be needed to process the claim, as well as valid punch times.
7
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
Issued Date
June 22, 2017
(Update September
1, 2017)

Engine Core Handling: As described in TSB SC147 and Parts Bulletin 20201-002, the engine starter ear, etched with the engine serial number, will
need to be returned for core credit. It is NOT necessary to create a “core
pre-claim” in the WebDCS for SC147 engine replacement claims.
Additionally, engine cores must be held for a minimum of 5 days after
claim paid date as they may be requested for special return by KMA
staff who will directly contact your dealer Service and/or Parts Manager.
You may discard engine cores 5 days after claim paid date if the engine
core is not requested by KMA.

Trained Technician Requirements: There are no technician training
requirements for completing the initial engine inspection using the KDS.
However, regular trained technician training requirements will apply for
SC147 when engine replacement is necessary.

Oil Type Usage: The SC147 recall repair claim compensates dealers for the
use of Kia sourced Mobil or Total conventional engine oil. Customer requests
for use of synthetic oil are not covered by this recall and any incremental
expense associated with the use of synthetic oil is not reimbursable.

Engine Coolant Usage: The SC147 recall repair claim compensates dealers
for use of Kia Long Life Coolant used to top off the engine cooling system
when the coolant is not fully recoverable after engine replacement using part
number UM040 CH012.

Salvage and/or Branded Title Vehicle Coverage: The SC147 safety recall
applies to vehicles with salvage and/or branded titles and inspection
procedures in the TSB should be followed if the vehicle is being driven by a
retail customer. Please contact your DPSM for any special circumstances or
situations.

Vehicle Storage Cost Reimbursement: Vehicle Storage Costs incurred due
to vehicle storage due to delays associated with the completion of SC147
may be reimbursable by KMA. Please contact your DPSM to initiate a
Storage Cost Reimbursement Request.

Carrying Cost Reimbursement: Used vehicles in dealer stock that are
included in the SC147 safety recall and incurred carrying costs from 5/26/17
until either (a) inspection test completion with a PASS result or (b) engine
replacement due to a NO PASS result or other engine issue necessitating
engine replacement may be eligible for a carrying cost reimbursement. KMA
is developing a claim process for this reimbursement and will update this
Warranty Bulletin with further details in the near future.
8
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
Issued Date
June 22, 2017
(Update September
1, 2017)
SC147 Claim Submission Requirements
Previous Engine Warranty Extensions/Increased Engine Warranty
Coverage
KMA announced an Engine Warranty Extension on certain vehicles included in Safety
Recall SC147 in June (some Optima vehicles) and August 2016 (some Sorento and
Sportage vehicles) via Customer Satisfaction Bulletin. The warranty for affected vehicles
was increased to 10 years/120,000 miles regardless of ownership.
9
Warranty Bulletin
2017-09
Subject
SC147 Claims Processing Procedures
Issued Date
June 22, 2017
(Update September
1, 2017)
Vehicles included in SC147 now have an increase in engine warranty coverage to 15
years/unlimited mileage from the original warranty start date regardless of ownership
and are identified in WebDCS as follows.
Accordingly, KMA is retiring the previously-issued Customer Satisfaction Bulletins for
affected vehicles to reflect this change.
Engine Warranty Claim Processing Prior to and After SC147 Recall Launch
1. Engine replacements necessary before the launch of Safety Recall SC147
on 5/26/17- Please ensure the appropriate regular service parts orders have
been placed to try to minimize vehicle downtime. Any RO’s opened on or prior to
5/26/17 should be claimed as a “W” type claim under the Engine Warranty
Extension program. All standard engine claims processing procedures will apply
to these claims inclusive of Techline PWA and core return as stated in the Kia
Service Policy and Procedure Manual. After the engine replacement using
regular service parts, the dealer should open a new RO to perform the inspection
procedures as outlined in SC147 and complete the recall.
2. Engine replacements necessary AFTER completion of Safety Recall SC147:
 TL engine PWA processes will apply to all dealers (no DSA privileges)
 Repairs will be performed using SC147 Parts (QQK Engine Part) & Labor
Operation code for engine replacement (no test)
 Warranty Claim will be submitted under additional campaign SC147A (VIN
will be added based upon TL PWA approval)
For any questions regarding claim submission for engine repairs associated with
vehicles included in SC147, please contact the Warranty Help Desk.
10