MTAA Welcomes the Smash Repair and Insurance Industry Code of Conduct

The Motor Trades Association of Australia (MTAA) and its national representative Trade Association Member, the Australian Motor Body Repairers Association (AMBRA), welcome the outcome of the Smash Repair and Insurance Industry Implementation Taskforce and wholeheartedly support the introduction of a new voluntary industry-wide Code of Conduct between smash repairers and insurers.

The Smash Repair and Implementation Industry Taskforce was appointed by the Minister for Small Business in late 2005 to develop a voluntary Code of Conduct between insurers and smash repairers. After six months and ten meetings the Taskforce has settled and agreed the terms of a new voluntary code of conduct to govern their business dealings.

Mr Michael Delaney, Executive Director of MTAA, and of AMBRA, said that while MTAA is pleased with this development, the Association notes that this is the culmination of a significant effort, over a sustained period, by MTAA and all its Member Associations. “The issue of relations between smash repairers and insurers has been on MTAA’s active agenda since its formation but has been of particular urgency since the Industry Commission conducted an inquiry in 1994” said Mr Delaney. Since that Inquiry and its report, MTAA has held the view that the introduction of an industry-wide Code of Conduct was necessary to address some of the problems faced by smash repairers.

Mr Delaney said that the new code was the product of many years of policy work by MTAA and acknowledged that the Taskforce had had some difficult issues to resolve. He said that the negotiations had been conducted in a spirit of goodwill and said he believed that all members of the Taskforce had worked co-operatively for the benefit of all in the sector. Mr Delaney said MTAA was thankful to the Government and Minister Fran Bailey for their support in developing the Code. The Code is a significant achievement that will help to deliver equitable relations between smash repairers and insurers into the future. Relations between motor vehicle repairers and insurance companies have been strained in recent years due to the increasing commercial pressure being placed on repairers by insurance companies. Of particular concern to MTAA’s members has been the creation by insurers of their respective repairer networks which often exclude the greater part of the repairer network. At the same time, repairers have been faced with the rising cost of labour and other business inputs.

“MTAA will encourage all smash repairers and insurers to become subscribers to the Code and will be closely monitoring the operation of the Code, particularly within the initial 12 months, so as to ensure that it is achieving its objectives and that signatories are complying with their obligations under the Code” Mr Delaney reported.

For further information, please contact Mr Michael Delaney, Executive Director of MTAA, on (02) 6273 4333.