The Motor Trade Association of New South Wales (MTA NSW) says it supports the findings of Dr Michael Schaper’s review into the Motor Vehicle Insurance and Repair Industry Code of Conduct, calling it a ‘step in the right direction’ and a ‘wake-up call’ for the industry.
The review calls for a major overhaul of the voluntary Motor Vehicle Insurance and Repair Industry Code of Conduct (the Code), proposing explicit consumer protection, faster dispute resolutions, and clearer language, among other recommendations.
Schaper’s independent review of the code recommended that dispute resolution timeframes between insurers and repairers should be shortened and that consumers should be given explicit protections within the code.
MTA NSW says it supports the 15 recommendations outlined in the report delivered by Schaper, particularly around claims processes and wait times – which need to be simplified and shortened – and greater consumer protection.
“In an industry beleaguered by long wait times and insurers prioritising profits over people, insurers and the industry need to work together to make sure that Australians are at the heart of the code. Insurers and repairers should be compelled to resolve disputes quickly and fairly,” MTA NSW chief executive Stavros Yallouridis says.
Each year, more than 1.7 million smash repairs are lodged in Australia, forming the single largest group of consumer retail claims in the Australian insurance industry. Since 2006, the relationship between smash repairers and insurers has been regulated under the voluntary code.
“Up until now, repairs have been a waiting game for motorists while insurers leverage their power imbalance over the repair industry and frustrate negotiations over important issues such as manufacturer repair methods,” Yallouridis says.
“If left unaddressed, the average motorist may be left with substandard repairs which compromise the resale value or worse the safety of their vehicle.”
Yallouridis says that while premiums for policy holders keep increasing, the rate insurers are willing to pay body repairers remains stagnant.
“The code is designed to strengthen and enhance transparent and cooperative relationships between smash repairers and insurance companies,” he says. “It is a vital instrument in overhauling the relationship between insurers and the industry, and ensuring the industry is just and fair for all parties.”
“On behalf of the MTA, we would like to thank Dr Schaper for delivering a thorough and balanced report.”
A copy of the Schaper report can be found on the MTA NSW website or downloaded here.
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