Page 14 - Australian Paint & Panel Nov-Dec 2020

14
News • In Focus
PAINT&PANEL NOVEMBER / DECEMBER 2020
SA PARLIAMENTARY
4. The SA Government require motor vehi- cle insurers to disclose any direct or indi- rect ownership or contractual arrange- ments in place when directing policy holders to specific crash repairers or pro- viding crash repairer options.
5. The SA Government introduce legisla- tion to ensure all South Australian motor vehicle insurance policies allow for vehi- cles to be repaired by a crash repairer located within a reasonable distance of a regional customer's home address.
6.The SA Government write to the Aus- tralian Competition and Consumer Commission (ACCC), requesting they conduct a review into:
• vertical integration of motor vehicle insurers and crash repairers; and
• the use of second-hand and non-orig- inal equipment manufacturer (OEM) parts in crash repairs and the potential risks and issues associated with them.
7. It be a requirement for all South Australian motor vehicle insurance policies to explic- itly state on the first page of their policy document, the location of the closest ap- proved repairer to the policy holder, the in- surer's ownership stake and/or contractu- al arrangements regarding that approved repairer, and whether the policy allows for: • choice of repairer;
• choice of parts;
• use of non-OEM or second-hand parts; • OEM windscreen replacement;
• OEM headlight replacement; and
• diagnostic scans.
8. Subsequent to ACCC work undertaken in line with Recommendation 7, the SA Gov- ernment consider introducing legislation to mandate the use of only new genuine parts where vehicles are still under the manufacturer's warranty period.
9. The SA Government encourage motor vehicle insurers and crash repairers to discontinue the use of 'funny time, funny money for crash repair costings and instead use costings based on the real time and cost of repairs, with guidelines for the time required to un- dertake repairs set by an independent party, such as the OE manufacturers.
10. The SA Government review the prac- tices used by insurers to force their cus- tomers to accept a cash settlement and make it mandatory for insurers to pub- licly report on the numbers of cash set- tlements made to customers com- pared to repairs made to vehicles.
INQUIRY RESULTS
THE PARLIAMENTARY INQUIRY INTO THE MOTOR VEHICLE INSURANCE AND REPAIR INDUSTRY IN SOUTH AUSTRALIA HAS RELEASED ITS REPORT AND RECOMMENDATIONS.
T
HE RECOMMENDATIONS INCLUDE
mandating the Code of Con- duct and working towards a na- ional mandated code and in- cluding financial penalties for breaches. It also recommends the ACCC looks into vertical integration of insurers and crash repairs and that the Govern- ment in South Australia considers legis- lating that only OEM parts should be used on vehicles that are still under man- ufacturer warranty. There were also con- cerns about customers being forced to
accept cash settlements.
The Committee received 53 written
submissions and heard from 35 witness- es across seven public hearings and two in camera hearings. There were also rec- ommendations for insurers to be far more transparent with consumers about choice of repairer and choice of parts.
The Economic and Finance Committee recommendations include:
1. The South Australian Government in-
troduce legislation to mandate the Mo-
tor Vehicle Insurance and Repair Indus- try Code of Conduct in South Australia as well as provisions for:
• a binding mediation process to enable the expedited resolution of internal dis- putes between motor vehicle insurers and crash repairers, overseen by a suit- able independent authority, such as the Small Business Commissioner or the Commissioner for Consumer and Busi- ness Services;
• appropriate financial penalties for breaches of the Code of Conduct to en- sure compliance by all parties; and
• an ongoing review process to ensure that the Code of Conduct remains up- to-date and relevant to the current in- dustry requirements.
2. The SA Government report yearly on insurance companies found either in breach of the Code of Conduct or with adverse findings against them.
3. The SA Government provide a portal to the Australian Financial Complaints Authority on a government website.
t