An issues paper on the relationship between the Australian motor body/smash repair industry and the general insurance sector has been published by the Australian Competition and Consumer Commission.
The issues paper provides an outline of the current issues and concerns in the smash repair sector. It was prepared following roundtable discussions facilitated by the ACCC between smash repairers, insurers and consumers who were invited to identify their key concerns with the way in which the market operates.
"The ACCC has not found any evidence supporting allegations of breaches of the Trade Practices Act," ACCC Chairman, Mr Graeme Samuel, said today. "However, it has determined that there is conduct occurring in the industry which is perceived to be unfair and unreasonable. This conduct may impact on the development of continuing commercial relationships".
A high proportion of smash repairs are performed under insurance contracts.
"Many smash repairers are concerned by the introduction of preferred repairer schemes by insurance companies. However, such schemes have resulted in a number of consumer benefits, including lower insurance premiums, lifetime guarantees and repair work performed to a high standard.
"In publishing this paper, the ACCC believes that any further developments in the industry should take into account substantive issues on behalf of smash repairers, consumers and insurers. These include:
- an efficient and effective smash repair industry which can perform work efficiently, at a low cost and in a professional manner;
- the treatment of smash repairers in a non-discriminatory manner whether or not they are part of a preferred or associate repairer scheme;
- that payment should be afforded repairers within 30 days unless there are reasonable grounds otherwise;
- access for consumers, repairers and insurers to dispute resolution procedures which include timely and efficient decision making processes.
- entitling consumers to a reasonable level of choice of repairers without being penalised; and
The ACCC has said that:
- that there is scope for greater transparency in the dealings between smash repairers and insurers;
- there should be further industry discussion, especially between the smash repair sector and the insurance industry; and
- industry participants should consider the potential application of codes of conduct involving wider access to dispute resolution mechanisms.