Motor insurers are examining plans to consolidate two NSW laws that regulate the sale and repair of vehicles in the state.

NSW Fair Trading Minister Anthony Roberts says he wants to protect consumers by reviewing the Motor Dealers Act 1974 and the Motor Vehicle Repairs Act 1980 and then introduce a consolidated act with “clear and upfront aims and objectives”.

The review also aims to regulate the industry in terms of the Australian Consumer Law, the national consumer protection legislation that came into force in January last year.

Mr Roberts says it’s time to enhance consumer protection in the auto industry.

“The Government is conscious of the need for improvements in consumer protection around issues such as consignment sales, odometer tampering and the need for better dealer disclosure,” he said.

The Motor Vehicle Insurance and Repair Industry Code of Conduct, a national code between motor vehicle repairers and insurers, is also seen as important under the review.

In NSW, the code is mandated by the Fair Trading Act 1987, which requires that all insurers and repairers comply with the code with the aim of “restoring the safety, structural integrity, presentation and utility of the motor vehicle”.

Motor Traders’ Association of NSW CEO James McCall says he wants tougher fines for breaching the code because current penalties are inadequate. “The whole area of enforcement needs to be strengthened,” he said.

Mr McCall says the review, which he supports, could affect insurers.

“It will significantly impact the way insurers deal with smash repairs and with their clients,” he told insuranceNEWS.com.au.

He accuses insurers of fixing cars to a price rather than to a quality standard.

“We believe these practices lead to poor-quality repairs, and in some practices, dangerous repairs,” he said. “We are very opposed to this.”

NRMA Insurance says the review is an opportunity to improve outcomes not only for consumers but also for the smash repair industry.

“We support moves by the NSW Government to tackle reforms needed in the smash repair industry,” a spokesman said. “We promote higher standards of professionalism, expertise and transparency in the smash repair industry.

“We support a mechanism to ensure those who are undertaking repairs on cars undergo regular professional development to ensure their knowledge, skills and equipment are of the highest standard for the protection of consumers.”