IAG subsidiary NRMA Insurance’s preferred repairer scheme is under further scrutiny, with the NSW Parliament’s Staysafe committee setting up an inquiry to examine safety implications.

Motor trades associations around the country have mounted considerable pressure on federal and state politicians over the NRMA Insurance scheme. The NSW Staysafe inquiry follows Bankstown MP Tony Stewart’s comments in Parliament in August about repairers quoting for jobs using pictures of damaged vehicles rather than physically inspecting them.

The inquiry will examine the alleged risk to safety of “financial penalties if damage is later uncovered that was not apparent through internet photos, possibly leading to cost-cutting and unsafe repair practices”.

It will also investigate allegations over the safety of using secondhand parts and the use of “unqualified assessors”.

Mr Stewart said in a statement that NRMA “needs to be made properly accountable” for the safety concerns. “If left unchecked, the [preferred repairer] scheme could lead to cost-cutting measures that will compromise safety and result in a road tragedy.”

Submissions to the committee close on Friday.