The Australian Competition and Consumer Commission (ACCC) plans to let RACQ Insurance set the labour rate for warranty repairs undertaken by its approved network.

Under the scheme, defects in repairs could be corrected by any RACQ-approved mechanic, at no cost to members.

Instead, the repairer would charge whoever carried out the original work at a fixed labour cost.

“This will be particularly convenient for members who may be travelling and away from their usual mechanic,” ACCC Chairman Rod Sims said.

Competition in Queensland’s car repair industry will limit any detrimental effects, and RACQ-approved mechanics must remain competitive with national servicing and repair chains, the commission says.

The ACCC has issued a draft determination proposing authorisation for five years and is seeking submissions from interested parties by May 16.

Authorisation provides statutory protection from court action under the Competition and Consumer Act 2010. Before approval the ACCC must be satisfied the public benefit outweighs any detriment.