The Insurance Council of Australia (ICA) is opposing plans by NSW Fair Trading to extend the fair trading provisions on unfair contracts to business-to-business arrangements.

In a submission to the NSW Fair Trading review of motor vehicle industry regulation, ICA says the Federal Government decided not to apply unfair contract provisions to business-to-business contracts after the Productivity Commission opposed it.

The council also opposes the introduction of state laws that cover the same ground as the Australian Consumer Law.

It also rejects a proposal to bring in a tiered licensing arrangement for auto repairers, saying such a system would be difficult to monitor, could segment the market and may increase repair costs.

ICA is also opposed to the reintroduction of licensing for vehicle loss assessors. It says existing legislation covers assessor competence, and the reintroduction of licences could increase red tape.