The Victorian Automotive Chamber of Commerce (VACC) welcomes the Morrison Government’s announcement that the Treasury Department is to examine the motor vehicle insurance and smash repair sector.
2022-23 is full of hope and opportunity as Treasury embarks on a national review that has been long awaited. This examination is the start of recognising the need for reform, including prescribing a mandated Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct.
A VACC policy priority has been for the Federal Government, who has responsibility over competition issues in Australia, to review the longstanding issues experienced in the motor and insurer industries and address concerns about commercial conduct. An aim of the review is to mandate a new national Code. Regulatory reform is required to address the lack of binding dispute resolution processes, interpretation issues with the current voluntary Code and to ensure penalties are applied when the Code is not adhered to.
An enforceable Code provides an important basis of understanding between the parties and their respective rights and obligations, establishing a common ground and bilateral participation across the industry.
This announcement is the culmination of many years of heavy advocacy on behalf of VACC and the MTAA network. It is an historic moment for the smash repair and insurer industry, which will ideally pave the way for fairer engagement between business and insurers.
