The Motor Vehicle Insurance and Repair Industry Code Administration Committee is considering becoming an incorporated entity after a recommendation it should adopt an association, company or other corporate structure.

Work is under way to revamp the code of conduct the committee oversees after an independent review made 15 recommendations last year to improve governance and customer outcomes. 

The committee expects a revised draft will be issued by the middle of this year, and it will then consult with the insurance and repair industries and other stakeholders.

The Insurance Council of Australia and the Motor Trades Association of Australia oversee the voluntary code, with three appointees each in the Code Administration Committee.

The code launched in 2006 and applies to all smash repairers and insurance companies that subscribe to it.

Reviewer Michael Schaper’s ninth recommendation was that the committee should adopt a corporate structure.  

“He identified that under its present informal structure, the code may lack credibility among industry players and government bodies,” committee Chair Stephen Jenkins said.

The review said: “The lack of a corporate entity means that the [committee] may be considered by some third parties (such as government and regulators) as lacking in sufficient credibility to be considered as a reputable dialogue partner.”

It recommended the committee consider incorporation either as a proprietary limited company or as an incorporated association, after seeking legal advice.

“The entity should also provide appropriate director and professional indemnity insurances for all [committee] members,” the review said. 

See Dr Schaper’s report here.

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