There’s a lot more transparency evident in the highly anticipated voluntary code of practice for the insurance and smash repair industries released by Federal Small Business Minister Fran Bailey last week.

Hopefully it might bring an end to a decade of controversy over smash repair standards and insurers’ determination to control the cost of claims.

The smash repairers should be pleased with the result – officially labelled the Vehicle Insurance and Repair Industry Code of Conduct – which has been hammered out with the insurers over the past six months.

Ms Bailey says it will “inject some much-needed transparency and certainty for smash repairers”, adding – without much exaggeration – “This has been achieved in spades.

“Now, with goodwill on all sides, we can roll out the code to the industries and ensure consumers benefit through greater clarity of the processes.”

The code will take effect on September 1, and an education roadshow will be held from later this month through to July.

Ms Bailey says the rules in the code will mean a simpler, more effective and more transparent system for consumers.

The code has several provisions for repairers, such as a scheme to provide full disclosure of membership criteria and the ability for repairers to transfer the status on sale of their business.

It also has provisions for a “fair and open” process in relation to the quotation process, times and rates, and use of parts.

Other rules stipulate that insurers need to provide smash repairers’ details in warranty provisions they supply to policyholders, and payments to smash repairers cannot exceed 30 days.

The insurers’ product disclosure statements will need to clearly state the company position on policyholders choosing their own smash repairers.

The code has been welcomed by both industries. Motor Trades Association of Australia Executive Director Michael Delaney says his organisation is extremely pleased with the outcome of the taskforce negotiations.

Insurance Council of Australia CEO Kerrie Kelly says the code will enable insurers to provide vehicle policyholders with the level of customer service they expect, “while clarifying and strengthening the business relationships between insurers and repairers”.