Only a couple of weeks after the Productivity Commission told the insurance and auto smash repair industries to develop a voluntary code of conduct or have the Federal Government enforce one of its own, the Insurance Council of Australia (ICA) has revealed that it’s already hard at work on a new draft code.

Acknowledging the commission’s “strong framework for improving the relationship between smash repairers and insurers”, Executive Director Alan Mason says the industry now hopes to work with motoring bodies to develop the code.

“ICA and motor vehicle insurers now look forward to participating in the Government’s proposed taskforce to engage with the Motor Traders Association of Australia (MTAA) and to develop a voluntary code of conduct,” he said.

“We also strongly agree with the commission’s position that consumers have adequate choice of repairer if they want it, and that ‘anti-steering’ regulation suggested by some repairers and politicians would not be in the interests of consumers or repairers who operated successfully under preferred smash repairer agreements.”

Mr Mason says the code will cover issues covered by the commission’s report, including a transparent, competitive quoting process; minimum payment terms of a reasonable period; and responsibility for guaranteeing repair work.

It will also toe the commission’s line by taking into account transparency in the selection and notification of preferred smash repairer status, information about choice of repairer, and dispute resolution procedures. 

MTAA Executive Director Michael Delaney told Sunrise Exchange News the association is also developing a draft code.

“We look forward to engaging in dialogue with ICA at the forthcoming Government-convened Task Force whose task it will be to prepare a voluntary code of conduct,” he said. “Hopefully all the versions of a code… can result in an agreed mutual code to the benefit of all in the industry.”