This transaction set communicates vehicle damage information between trading partners in the automotive and insurance industries. Typically, a claims adjuster, repair facility, or insurance company sends a Vehicle Damage (124) message to another insurer, repair shop, or claims processor to document and exchange damage assessment details. The transaction is often transmitted in response to a claim notification or damage inspection request. Key segments include the BGN (Beginning Segment) to establish the transaction context, the VEH (Vehicle Information) segment to identify the specific vehicle involved, and the DAM (Damage Information) segment to describe the nature and extent of damage sustained.

For example, when National Auto Insurance receives a collision claim from a customer, the company’s claims adjuster prepares a Vehicle Damage 124 transaction and sends it to Premier Repair Services to initiate the repair estimate process. The message includes identifying information for the claimant via the NM1 segment, vehicle details such as year, make, and VIN through the VEH segment, damage descriptions and repair cost estimates in the DAM and CTP (Pricing Information) segments, and any special instructions or notes via the MSG (Message Text) segment. Premier Repair Services receives this structured data, verifies the damage scope against their inspection, and uses the information to prepare and submit their repair quote back to National Auto Insurance.