Nrma Puts Fear Into Car Repairers

Illawarra Mercury

Friday July 15, 2005

By MEGAN LEVY

ILLAWARRA smash repairers are gearing up to battle controversial changes to the way NRMA Insurance allocates repair work.

The motoring giant is overhauling its smash repair system by opening Care and Repair centres across Sydney, a move which could soon follow in the Illawarra.

At the new centres, damaged cars are photographed and pictures posted on a secure website, where smash repairers will bid for the jobs.

At present, motorists take their vehicles to a repairer of their choice, provided it is an NRMA approved repairer.

Several Illawarra smash repairers contacted by the Mercury yesterday said they were vehemently opposed to the changes.

They said the new system would result in lower quality repair jobs, a claim disputed by the motoring giant, which believes it will deliver more bang for the customer's buck.

The repairers yesterday chose to remain anonymous because the system is not yet in place in the Illawarra and businesses relied on NRMA Insurance jobs.

But they were so concerned they had already held meetings to discuss the changes.

"When they introduce the system here, that's when all of the repairers will turn around and start fighting," one repairer said.

"Under the new system the cheapest price wins the job, but the cheapest price isn't necessarily a good repair. The cheapest price can be dangerous."

He said it was also "impossible" to accurately determine how much a repair would cost from a photograph on a website.

The Motor Traders Association, which will hold a meeting in Wollongong on Tuesday, has also criticised the new system, which is operating in South Australia, Western Australia and Queensland.

NRMA Insurance CEO Rick Jackson said the system had led to higher customer satisfaction and quality levels elsewhere.

He said more than 80 per cent of invited repairers in Sydney had signed onto the new system, and the MTA was using scare tactics to hide inefficient practices.

"This issue is about competitiveness and efficiency. There are twice as many repairers per car in Australia than there are in the UK and that's clearly not sustainable."

© 2005 Illawarra Mercury

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