Large motor insurers and the Motor Trades Association of Australia have approved the Federal Government’s new voluntary code of conduct for the smash repair industry.

After months of bitter debate and confusion, particularly in NSW, Federal Small Business Minister Fran Bailey says the code will inject much-needed transparency and certainty for smash repairers and the broader community.

The code outlines clear responsibilities for insurers and smash repairers, with the aim of maintaining a positive relationship. In particular, insurers will have to make their repairer network programs more transparent.

There should be clear and publicly documented methods for smash repairers wishing to join a preferred repairer network such as NRMA’s Care & Repair scheme.

The voluntary code was recommended by a Productivity Commission inquiry into the industry. The two sides, along with the Government, worked on the document for 12 months. IAG, which controls NRMA Insurance, was one of the first four insurers to sign during the code launch on June 29. Allianz, AAMI and Suncorp Metway have also adopted the code.

The new federal code forms the basis for the NSW Government’s proposed mandatory code for the local industry. State Fair Trading Minister Diane Beamer says the legislation will be introduced in the next session of the NSW Parliament, beginning August 29.