The much-anticipated new version of the code governing relations between insurers and repairers has posed some key questions in a bid to generate industry feedback.
The questions from the Code Administrative Committee’s explanatory note surround some the key unresolved issues about the draft version of the new code including the timeline for dispute resolution, who should resolve them and what sort of sanctions should breaches incur.
Repairers will have all this month and until the end of April to give their feedback on the Code of Conduct and help shape the future of the document.
Have your say:
The explanatory note also offers these three thought-provoking 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.
Key Issues addressed
The explanatory memorandum outlines some of the key issues addressed in the New Code.
- Language: The New Code aims to address the vague and unclear language in the current Code of Conduct where industry participants have interpreted the language in different ways that have caused unnecessary disputes, delays, and inefficiencies for both insurers and repair businesses. To minimise differing interpretations, the New Code in a simplified format, now includes definitions to make things clearer and help participants understand when a dispute arises and when the Code doesn’t apply to certain practices or operations.
- Estimation and Assessment Timeframes: The New Code provides clear timelines for the estimation and assessment process. Whilst the Code cannot cover off on all scenarios involved in a repair under an insurance claim, the clarity built into the New Code will provide certainty for industry participants on how Estimations and Assessments are to be undertaken. This will also assist industry participants to understand when a dispute can be validly raised under the New Code. It also retains the need for Estimators and Assessors to be appropriately skilled in line with skill requirements of a rapidly evolving motor repair industry.
- Dispute Resolution Process: The New Code introduces two distinct types of disputes between an Insurance Company and a body Repair Business to help define and shorten the process.For Repair Disputes, the New Code emphasises the need for a cost-effective, efficient, and binding resolution. It establishes clear timelines to streamline the process and introduces an independent adjudicator to make final, enforceable decisions. For General Disputes, the New Code offers a mediation process to help parties resolve their issues. Specific time frames are included in the initial stages to ensure prompt progress.
- Governance: The governance structure of the Code is proposed changing with formalisation of the Code Administration Committee under an incorporated association with jurisdiction across Australia. The Committee will have powerto impose sanctions, fines and other manners of enforcement upon parties who breach of the Code.
The new governing body will incorporate the appointment of an Independent Chairperson to both the Committee and the Board provide annual reports to cover all aspects of governance.
This draft follows a long journey and extensive work following Dr Michael Schaper’s review in 2023 of the old code that found it was underutilised 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.
Everyone should have their say
CAC Chair George Manos says the consultation period will be crucial time for a diverse range of sources including collision repairers to help shape a relevant code for the future.
“We want everyone to have their say,” Manos says. “As a committee we welcome public submissions, as well as direct or confidential engagement with the Insurance Council of Australia and the Motor Trades Association of Australia
“To support stakeholders, navigate the proposed new Code, the CAC has developed an explanatory memorandum. Whether through the website or targeted industry engagement, the CAC has worked on making the consultation accessible for all stakeholders.”
It will remain open to industry consultation until Tuesday 29 April 2025.
Submissions can be made on the consultation website at www.mviricode.com.au or by email to codereview@mviricode.com.au.