The Insurance Council of Australia has given in-principle support to draft recommendations for the NSW tow truck industry.

It particularly welcomes moves to ensure the regulated storage price for vehicles involved in accidents applies regardless of where they are stored.

“This is a commonly exploited gap in the regulation that can significantly increase the cost of accident towing and repair,” CEO Rob Whelan says in a letter to the state’s Independent Pricing and Regulatory Tribunal (IPART).

The tribunal says its recommendations aim to minimise red tape while giving consumers adequate protection.

IPART has also agreed to a Suncorp request to extend the definition of standard business hours in relation to setting surcharges for towing.

“We
agree with Suncorp that standard rates should apply to peak accident times on business days and, therefore, we are recommending that the definition of standard business hours be extended to 7am-7pm,” IPART Program Manager Brett Everett told a public roundtable.

“We estimate about 40% of accidents in NSW occur from 8am-5pm on business days compared with about 56% between 7am-7pm on business days.”

Terms of reference for the review require IPART to make a final report four months after release of the draft.