Page 6 - Australasian Paint & Panel Nov-Dec 2018

NEWS
AXALTA EUROPE TOUR
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EXPO SET FOR APRIL
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NAILBITING PPG FINAL
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FLAT HOURLY RATE BREACHES CODE
VACC chief executive officer Geoff Gwilym hails the Small Business Commision’s determination as a landmark ruling.
DETERMINATION THAT A car insurer had breached the repair code of conduct heralds relief for small business operators and motorists says VACC. In a landmark decision on 10 October, that will likely have widespread consequences for the motor insurance and body repair industries, the Victorian Small Business Commission (VSBC) determined that a car insurer had breached the Motor Vehicle Insurance and Repair Industry Code of Conduct (the Code) when it insisted that a car repairer be paid a flat hourly rate for repairs, without having assessed the real cost of repair.
The VSBC’s determination suggests that the practice of dictating an hourly rate (known colloquially as ‘funny time, funny money’) breaches the Code.
“This is a significant win for the body repair industry in Victoria,” said VACC chief executive officer, Geoff Gwilym.
“On behalf of the many business owners for whom this is very welcome news, VACC thanks the Victorian Small Business
Commission for this determination. “This is a common sense decision that
changes the working dynamic in a positive way in terms of creating a fair environment for all stakeholders working in the body repair industry. It essentially means that repairers must have their fair and reasonable estimates assessed transparently by assessors to also determine the true cost of repairs. The onus is then on the parties to arrive at an agreed rate if there is a difference in the repair costs calculated by the repairer and the insurer,” said Gwilym.
The VSBC was established to create a level playing field for small business. Its functions include advocating on behalf of small business and acting as an independent dispute resolution service for resolving business-to-business and business-to-government disputes. The VSBC also has a new function to provide Determinations under the Code. This Determination is the first to be completed in Australia under the Code.
The VACC has called on the Victorian Government to regulate the Code in Victoria. This decision highlights the need for all insurers, repairers and assessors to comply with the Code and not be limited to signatories only.
IAG SUPPORTS CODE REGULATION
INSURANCE AUSTRALIA GROUP (IAG) is supporting an industry push to regulate the Motor Vehicle Insurance & Repair Industry Code of Conduct in states outside NSW.
IAG Head of Supply Chain, Ian Tulloch, said the success of the Code in NSW should be implemented nationally.
Tulloch agreed with the Victorian Automobile Chamber of Commerce (VACC) that the costs of disputes and loss of productivity under a voluntary Code was impacting the industry and insurers.
“Mandating the regulation of the Code means that everybody is on a level playing field, and we would definitely support such a proposal in
Victoria, and nationally,” he said.
“There will be times
when we don’t see eye to
eye, but the most
important thing is we
have a consistent, defined
resolution process where
insurance companies, smash
repairers and industry bodies can come
together to reach a fair and reasonable position, and quickly.”
Tulloch said IAG is committed to developing better ways of working with
the industry to eliminate confusion and unnecessary disputes.
“In the recent WA Parliamentary Inquiry we made it very clear we would support a
mandated Code beyond NSW. “Like the VACC, we believe stronger relationships between insurers
and repairers are important to deliver better outcomes for all stakeholders.”
6 PAINT&PANEL November / December 2018
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