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NSW puts microscope on NRMA smash repair scheme

While the Australian Competition and Consumer Commission (ACCC) and the Federal Government have given the thumbs-up to NRMA’s controversial web-based vehicle repair management system, the NSW Government isn’t convinced and has called for an independent expert to review the system.

IAG personal lines subsidiary NRMA Insurance wants smash repairers to tender for work on the evidence of digital photographs and descriptions of damaged vehicles on its website.

But NSW Fair Trading Minister Diane Beamer says the Government is finding it difficult to uncover unbiased information on the issue.

She says the Motor Trades Association of Australia (MTAA) claims the system forces repairers to cut corners in order to get jobs, while NRMA Insurance says it will mean lower premiums for consumers.

But Ms Beamer isn’t thinking of introducing controlling legislation. “I have always said that negotiation rather than legislation will bring the best outcome,” she said. “However, Fair Trading is continuing to investigate the implications of anti-steering legislation.”

NRMA Insurance says it would be “absurd for any insurer to compromise the quality or safety of collision repairs” and the system has already been reviewed by several bodies, including the ACCC and the NSW Office of Fair Trading.

Claims and Assessing Head (Personal Insurance) David Brown says the company has already appointed an independent safety expert to conduct a review of the service.

Part of the job of the NSW Government-appointed independent reviewer will involve analysing the ability of smash repairers to submit realistic tenders based on the information provided in NRMA’s system, the process for submitting variations on tenders, possible penalties and the effect of web-based repair management on the quality of work.

He will also examine the role of NRMA loss adjusters in the vehicle repair process as the sole supplier of the “scope of works” for damaged vehicles.