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SA government probes motor insurance sector

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The SA Parliament has launched an inquiry into the state motor insurance and car repair industry.

It will examine whether dispute resolution mechanisms are effective in settling issues between repairers and insurers and in protecting consumers interests, and whether vertical integration is reducing consumer choice and market competition.

It will also investigate whether consumers are knowledgeable about contracts and repairs under insurance policies, particularly concerning repairer choice, cash settlements, fairness in assessing non-partnered repair estimates, and the effectiveness of web-based assessments.

The inquiry, chaired by MP Sam Duluk, will also check if motor insurers and repairers are complying with relevant laws and authorising and carrying out repairs to restore the safety, structural integrity, presentation and utility of vehicles.

“This inquiry will examine the effectiveness of the voluntary Motor Vehicle Insurance and Repair Industry Code of Conduct in regulating the relationship between repairers and insurers and in protecting the interests of SA consumers,” Mr Duluk said.

“Following recent changes to the SA compulsory third party insurance scheme and closure of the Motor Accident Commission, it is timely… to examine these important issues.”

Submissions to the inquiry end on September 6.