The Insurance Council of New Zealand (ICNZ) has welcomed new regulations to stem the import of unsafe, water-damaged vehicles from Australia.

The law requires all electrical and pyrotechnic safety components such as airbags, sensors, seatbelts, seatbelt pre-tensioners and wiring to be replaced in water-damaged light vehicles.

Previously, only items below the water line had to be replaced.

CEO Tim Grafton says it is common for damaged or written-off vehicles to be imported to New Zealand from Australia.

“Insurers welcome this change because the importation of water-damaged vehicles increases the risk of serious accidents, particularly due to failures in advanced safety systems,” he said.

“With advanced vehicle systems such as collision avoidance becoming commonplace on newer vehicles, an electrical failure can risk a serious accident involving multiple parties.”

ICNZ says repairers have encountered imported cars whose restraint systems and electrical components were found to be water-damaged only after they were dismantled for repairs.

New Zealand Transport Agency Group Manager Access and Use Celia Patrick says the regulatory changes aim to stop poor-quality repairs.

“Safe repair of water damage requires all affected electronic and pyrotechnic safety components to be replaced, to guard against components failing or not functioning properly in the event of a crash,” she said.

She says it is becoming increasingly difficult for repairers to determine the extent of water damage, because cars have often been “groomed” before being presented to repairers.

There have been cases of people masking or misrepresenting water damage to reduce the cost of replacement.

Water-damaged vehicles bought on or before September 7 can be certified under previous requirements, provided they are border-checked by October 7.