(a) restoring the safety, structural integrity, presentation and utility of the motor vehicle;

4. INSURER AND REPAIRER RELATIONS

4.1 Repairers: In their dealings with Insurers in relation to repairs, Repairers will:

(a) prepare estimates that provide for an appropriate scope of repairs, ensuring that all
repairs are carried out in a safe, ethical, timely and professional manner and
in accordance with the method of repair and the parts specified by the Insurer;

4.2 Insurers In their dealings with Repairers in relation to repair work, Insurers will:

(d) ensure all assessors engaged by the Insurer are:

(i) appropriately trained and have appropriate technical experience; or
(ii) have successfully completed an approved assessors course; or
(iii) have not less than five years experience as an insurance (motor) assessor;

This demonstrates that the Insurer has the crucial role and duty in providing appropriately trained staff and the relevant details to the Repairer, when that Repairer is requested or offered the opportunity to supply a quotation in this “Competitive Quotes” environment model.

However, we cannot stress enough the importance of the potential liability for all concerned.

The following excerpt is from a leading manufacturer’s repair manual;

“FOR REPAIRING BODY STRUCTURE PANELS - are designed to perform in their original shape. If parts are deformed in an accident, or if the deformed parts are repaired and reused, the parts may be unable to perform as intended. It is necessary to replace the part where the kink has occurred.”

This lack of knowledge by Insurance Assessing staff in being able to identify the manufacturer’s recommended method of repair, can lead to Repairers submitting uncompetitive but “correct” estimates. This failure to identify the correct method of repair could lead to disastrous consequences for all concerned, foremost the general public of not only NSW but throughout Australia.

“The NSW Fair Trading Act has been amended to require Insurers and Repairers to comply with the Code. Failure to comply with the Code constitutes a contravention of the Act”.

MTA NSW will continue to raise these matters at the highest levels to ensure public safety is not taken for granted and ensure compliance with the MVIRI Code of Conduct, whether or not the Insurer or Assessing Organisation is a Signatory to the Code.

Late Payments – Update
MTA NSW had received numerous instances of late payments well in excess of the 30 day MVIRI Code of Conduct stipulation.

Whilst we will always endeavour to use the provisions within the Code to sort any issue Code related, the amount of overwhelming information led to a meeting with the Office of Fair Trading to seek their support in notifying Insurers of their responsibility with late payments.

This extraordinary step was due in part to events that all of us are aware of happening around the world that will have a significant impact on small businesses in the smash repair industry throughout 2009.

This measure is to remind Insurers and Accident Management organisations that operate on behalf of Insurers, whether they are a Voluntary Signatory to the Code or not, are bound by the mandatory Motor Vehicle Insurance and Repairer Industry Code of Conduct in NSW.

“The Commissioner for Fair Trading can also take action under the Fair Trading Act to enforce compliance with the Code”.

MTA NSW would also like to express our appreciation to those Insurers that have co operated with us in addressing these issues prior to the meeting with the Office of Fair Trading.

MTA NSW encourages all Repairers to deal directly with the Insurer with any Code related matter as outlined in the disputes resolution process within the MVIRI Code of Conduct.