The Insurance Council of Australia (ICA) has backed a draft proposal limiting where Victorian tow operators can take vehicles for repair.

In a submission to the Essential Services Commission’s (ESC) accident towing regulation draft report, ICA says restrictions will protect accident victims from touting, unreasonably high repair fees and stressful disputes with repairers who refuse to release vehicles.

It says the move would give Victorian consumers more time to choose where they want to have their vehicles repaired.

ICA also supports maintaining fee regulation across Melbourne, but wants set fees introduced across “unregulated” regional Victoria, as opposed to the ESC’s suggested fee notification regime. ICA says set fees across rural NSW have avoided excessive towing charges.

The council supports other ESC recommendations, including maintaining the allocation system to avoid “behavioural issues” associated with multiple tow operators attending accident scenes.

ICA agrees VicRoads should amend its “authority to tow” docket to include a page of warnings that must be signed by the driver requiring the service. It also supports VicRoads working with insurers to educate drivers about what to do at an accident scene.