Insurance Confusion Mended
The Age
Thursday June 1, 2006
CONSUMERS will be told at the outset and in plain English whether their car insurance policy allows them to choose their own smash repairer, under a new code to end a decade of ferocious disputes between Australia's insurance giants and the smash repair industry.
The new code, which has been obtained by The Age, also requires insurers to fully disclose whether their panel beaters use new, non-genuine or recycled car parts, and to clearly state their position on warranties. The code is expected to be unveiled today by the federal Small Business Minister Fran Bailey after six months of closed-door negotiations between the Government, Australia's insurance companies and the motor trades association.The peace pact follows a Productivity Commission inquiry last year that recommended the introduction of sweeping reforms, including a voluntary code of conduct, to clean up the $3.5 billion industry.The industry was threatened with a mandatory code of conduct if it could not reach agreement within six months.Despite significant mistrust between the players, the talks have delivered a code in line with that recommended by the Productivity Commission.The code will make the process of car repairs clearer for consumers and make it less likely that they will be the victims of disagreements that take place between their insurer and their panel beater.Smash repairers have agreed to make their quotes, prices and repair times clear and to not engage in activity that would hinder insurance companies seeking to get a competitive quote from another business.Ms Bailey told The Age that the code would deliver "greater transparency and certainty for the industries". She also said that it was an important means of getting consumers out of the middle of disputes."With goodwill on all sides, we can roll out the code to the industry and ensure consumers benefit through greater clarity," Ms Bailey said.
© 2006 The Age
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