Work is underway to revamp the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct after an independent review made 15 recommendations to improve governance and customer outcomes, the Insurance Council of Australia (ICA) says. 

ICA and the Motor Trades Association of Australia (MTAA) oversee the voluntary code, which commenced in 2006 and applies to all smash repairers and insurance companies that subscribe to it. 

They say in a joint statement that the Code Administration Committee (CAC) has met to establish its priority actions in response to the recommendations. The ICA and MTAA have three appointees each in the CAC. 

Priority areas include a rewrite of the code to improve readability and accessibility; considering options for enhancing governance; and efforts towards greater promotion and education of the code as well as engagement with stakeholders. 

“Positive discussion has commenced in relation to the first two priorities, with further meetings planned to progress this significant body of work,” the ICA and MTAA said. 

Reviewer Michael Schaper, who was appointed in December last year to examine the code, presented his final report in May. 

The report says motor vehicle repairs make up the largest proportion of insurance claims from Australian consumers. In the retail insurance line there were 1.76 million smash claims made in the 2020/21 financial year, representing 45% of the total 3.9 million claims made by consumers nationally.  

“Since much smash repair work is performed by repairers and paid for through insurance, there is often a marked imbalance in power between some parties,” the report says. 

“Consumers are also important, but often do not have a direct contractual relationship with the repairers.” 

The report also found the lack of penalties for non-compliance with the code’s provisions is a “substantial” weakness.