With only three weeks remaining for feedback for the all-important Code of Conduct between insurers and the repairers, the MTAA is hoping its own analysis will generate more responses and changes.
The leading automotive industry body, the Motor Trades Association of Australia has compiled the analysis of its feedback with the Australian Motor Body Repairers Association, from a group of repairers and other industry organisations.
These bodies have seats on the Code Administrative Committee, along with the Insurance Council of Australia, who will draw up and ultimately decide the nature of the final code after the completion of the feedback period ending on June 23.
The overall findings by the MTAA’s feedback analysis is that the code does not go far enough in protecting repairers’ rights in relationships with much larger insurers and also lists numerous operational pressures faced by repairers, including price, the use of genuine parts and payment delays.
The analysis is made up of 18 submissions from repairers, with further input provided by individuals, industry associations, and assessing/claims management companies.
READ MORE: Download the draft Code of Conduct here
Feedback has also been generated from the state-based MTAs and the VACC who have led a range of workshop sessions and feedback engagements to allow industry feedback.
The MTA’s have long argued the MVIRI Code of Conduct needs to be mandatory in order for it to be binding inits recommendations
The MTAA has divided its responses in 12 key issue areas where they argue the draft Code falls short of industry expectations, including assessment control, dispute resolution, insurer dominance, payment timelines, and the qualifications and conduct of assessors.
Under each of these themes the MTAA has also built a wide-ranging set of recommendations that it hopes will be included in the code better serve its members. These are listed in full below along with a summary of the feedback from the submissions.
Public submissions can still be made on the Code up until 23 June 2025 on the website or by email to codereview@mviricode.com.au.
The MTAA’s key themes and proposed changes
- Power Imbalance and Estimate Control
“Insurers currently exert excessive control over pricing and repair methods. Clause 6.2 of the draft Code allows them to dictate estimation methodologies. Clause 6.4 attempts to prohibit arbitrary alterations but still allows insurers to modify estimates if they “insist” on changes to process or parts.”
Amendments:
- Introduce enforceable rights for repairers to negotiate estimates
- Require justification from insurers for any alteration
- Require assessments to align with the work plan prepared by the repairer
-
Pricing Transparency and Fair Rates
“The Code excludes rate-setting, exposing repairers to suppressed pricing.”
Amendments:
- Promote transparency and independence in rate setting, ensuring repairers retain the right to determine their own commercial rates
- Recognise all legitimate costs including government levies and compliance obligations
- Reinstate objective of transparency in relation to times, rates, repairer choice, and use of parts
-
Payment Timeliness and Cash Flow Risk
“Insurer payment delays place severe strain on repairers.”
Amendments:
- Require undisputed invoices to be paid within 14 days
- Mandate approval of supplementary work within 48 hours
-
Dispute Resolution Fairness and Cost Sharing
“Cost and structure of CAC process deters repairer participation.”
Amendments:
- Introduce low-cost third-party mediation prior to adjudication
- Simplify internal dispute resolution process with minimal documentation
- Ensure adjudicators have knowledge of repair methods, parts, and paint
-
Repair Warranty and Liability Shifting
Feedback: Repairers carry full warranty burden, even when following insurer-mandated practices.
Amendments:
- Require insurer indemnity where they mandate parts or procedures, ensuring:
- Indemnity is clearly defined in writing, with specific triggers and exclusions
- Supported by a binding dispute resolution mechanism
- Framed to include both direct and consequential losses
- At a minimum, require use of OEM parts on all vehicles
-
Use of AI in Damage Assessment
Feedback: AI-generated estimates lack human oversight and accuracy.
Amendments :
- Require human review of AI assessments
- Require insurer to name the responsible assessor
- Formulate AI policy and guidelines (for approval)
-
Assessor and Estimator Qualifications
Feedback: Lack of mandatory trade qualifications undermines credibility and consistency.
Amendments:
- Mandate certification and ongoing training
- Include impartiality and compliance obligations under a recognised code of conduct
-
Consumer Choice and Steering Practices
Feedback: Consumers are steered to preferred repairers despite claims of choice.
Amendments :
- Mandate written disclosure of repairer choice rights
- Prohibit coercive or misleading referral practices
-
CAC Governance and Independence
Feedback: Current structure and casting vote provision risk systemic bias.
Amendments to consider:
- Ensure independent chair appointment
- Include non-affiliated repairer representation
- Introduce a complaints process for reporting poor assessor behaviour
-
Sanctions, Transparency and Protections
Feedback: Lack of clarity and consistency in penalties and their application.
Amendments:
- Develop clear guidelines and policy on sanctions structure, rules, and procedural fairness
- Establish tiered penalty framework
- Publish breaches and outcomes annually
- Provide protections for repairers who raise disputes
-
Methodology and Repair Integrity
Feedback: Insurers override appropriate repair methodologies and require unqualified work.
Amendments :
- Require adherence to OEM and paint system procedures
- Prohibit insurers from requesting uncertified work
- Ensure age and condition are not used to justify compromise on structural safety
-
IP and Repairer Documentation
Repairers lose control over photographic materials submitted in good faith.
Amendments :
- Retain photographic IP rights with repairers
- Prohibit unauthorised reuse of materials in future estimates
- Prohibit copyright infringements of repair estimates
The CAC’s own talking points
In February the CAC released three questions in key areas to help frame industry feedback.
- Dispute timeframes: How long should be allowed for the insurer-repairer to resolve a dispute before it is allowed to proceed to expert adjudication or mediation?
- Adjudicators: What should the appropriate skill sets, experience and attributes of an adjudicator be?
- Sanctions: What should Code sanctions be and/or how much should they be for insurers and repairers?
The Motor Vehicle Insurance and Repair Industry draft Code of Conduct and is looking for responses for from businesses, individuals and organisations.
The draft was developed by the Code Administration Committee made up of representatives from the Insurance Council of Australia and the Motor Trades Association of Australia.
Last month the CAC posed a number of questions around formative issues for the collision repair industry aimed at generating interest and reaction from repairers.
READ MORE: Download the draft Code of Conduct here
It follows a long journey and extensive work following Dr Michael Schaper’s review in 2023 of the old code that found it was under utilised and too little known about in the industry. The Code Administration Committee was set up in and a rewrite conducted last year.
The updated Code aims to improve clarity, fairness, and effectiveness in several critical areas, including Sanctions and penalties, assessment and estimation times, methods of repair, and dispute resolution processes.
The consultation period will also make available proposed changes to the governance structure of the Code and formalisation of the Code Administration Committee under an incorporated association.
The draft Code and supporting documents can be found on the consultation website here
Public submissions can be made on the website or by email to codereview@mviricode.com.au.
Stakeholders can also make confidential submissions directly to the Motor Trades Association of Australia by email to info@mtaa.com.au or to the Insurance Council of Australia by email to administration@insurancecouncil.com.au.