The Federal Chamber of Automotive Industries has delivered a list of recommendations as part of its response to the proposed review of the Motor Vehicle Insurance and Repair Industry Code of Conduct.  

The body, which has members including 60 automotive brands, has called on the code to ensure further transparency on the sources and types of replacement parts permitted by insurers.  

It adds that the new code should standardise replacement part definitions to ensure they have “clear, consumer-friendly language”, noting that terms such as “recycled” and “parallel” lack clarity.  

The FCAI calls on the code to require repairers to hold specific training and certificates relevant to the vehicles they operate on, highlighting particular risks for those operating on electric cars. 

The body says insurers should also actively consider such requirements when selecting their preferred provider for a repair job.  

“The absence of mandatory repairer qualifications, especially for intricate systems like EV high-voltage components and ADAS, creates a potential gap in ensuring safe and effective repairs,” the submission says.  

“By incorporating these crucial requirements, the Code can elevate repair quality, enhance safety for both repairers and vehicle owners, and maintain the intended performance and safety standards engineered into modern vehicles.”  

The submission also looks for the code to recommend using original equipment manufacturer parts or OEM-approved repair methods for vehicles still in their OEM warranty period.  

Related to this, the FCAI says more collaboration is needed to address counterfeit parts, saying the use of such parts “presents a potential danger with no benefit for any stakeholder – insurers, repairers, or consumers”.  

Among the recommendations are for insurers to implement robust processes to verify the authenticity and source of replacement parts and set up systems to report any counterfeit materials.  

These recommendations will be made to the Code Administration Committee, which consists of representatives from the Insurance Council of Australia and the Motor Trades Association of Australia.  

The committee earlier this month increased the deadline for submissions to June 23. The ICA says it will publish submissions once the deadline has passed.  

Click here to view the FCAI’s submission.