The Victorian Automobile Chamber of Commerce (VACC) has attempted to use insurers’ recent impressive profits to put the smash repairer issue back into the public spotlight, despite the fact that the Productivity Commission has already completed its inquiry into the issue.

VACC Executive Director David Purchase – who describes the insurance industry as “a disgrace” – says “the profit-above-all attitudes of insurers short changes consumers… and short changes the industry through unrealistic labour rates and endemic bullying practices”.

“Motorists are being dudded, that’s the long and short of it,” Mr Purchase said.

He says insurers’ recent profits are due to cost-cutting “shortcuts” in their smash repairer schemes.

Mr Purchase has first hand experience of the insurance industry – he used to work in it as CEO of the Life Insurance Federation of Australia.

But insurers say they only provide a list of “preferred smash repairers” to policyholders to ensure repair work is completed to a satisfactory level at the right price.

While Promina’s AAMI uses a preferred smash repairer scheme, it doesn’t charge an extra premium if policyholders want to choose their own repairer. IAG allows policyholders to choose their own repairer, but at an additional cost.

Mr Purchase accuses insurers of “skinning consumers of their right to the best and safest repair in the event of a claim”.

He accused the industry of employing “unqualified insurance assessors” who “commonly override the recommendations of the qualified repairer”.

The Productivity Commission received 52 public submissions and a number of private submissions. It released a draft report in November and will submit its final report and recommendations to the Federal Government by Thursday.