The dispute between NSW smash repairers and IAG subsidiary NRMA Insurance is likely to be resolved by legislation.

Independent NSW MP Richard Torbay’s anti-steering bill, which had been bitterly opposed by insurers, received scant Government support, ensuring its failure. But the insurers aren’t off the hook. Fair Trading Minister Diane Beamer says she is developing a new code of practice that will apply to all motor insurers.

“The dispute between IAG-NRMA Insurance and the Motor Traders Association (MTA) has highlighted the need to put rules into place that ensure a fair deal for consumers and a sustainable industry for repairers and insurers,” she said.

Both sides have welcomed the plan.

MTA CEO James McCall says NRMA Insurance has come a long way in its negotiations but there is still a “wide gap” between its web-based Care & Repair contract allocation system and smash repairers’ demands to dismantle it.

The proposed code will do a lot to regulate the behaviour of all insurance companies, he says.

A spokesman for Ms Beamer says the code will be based on a voluntary federal code which is expected to be finalised in July. Her department will then spend about a month developing the mandatory code for NSW. It will take input and comment from all stakeholders including the MTA, IAG and the state’s StaySafe committee.

The final code is expected to go to the NSW Cabinet in October.