Several years ago AAMI was the focus of a major push by smash repairers to force it away from its policy of selecting repairers. Now the repairers are mounting a similar campaign against NRMA Insurance in a bid to create a “level playing field”.

The Australian Automotive Repairers’ Association has taken the insurer to the Federal Court in Sydney, claiming its Preferred Repairers Scheme – which encourages policyholders to use its preferred repairers – is in breach of Section 47 of the Trade Practices Act, which prohibits exclusive dealing.

The association is representing about 200 non-preferred repairers. NRMA Insurance handles about 40% of the national car insurance market, and says it doesn’t “force policyholders to use the preferred insurers; they’re free to use which ever provider they like”.

“We don’t think we’re in breach of the Trade Practices Act at all,” a spokesman told Sunrise Exchange News.    

After four days of proceedings, the case was adjourned to the end of March.