Bill To Smash Repair System
Newcastle Herald
Thursday March 9, 2006
NRMA Insurance may be forced to dump its controversial web-based smash repair system under a bill to allow motorists to choose their own repairer.
The bill, which affects all car insurers in NSW, imposes jail sentences and penalties of up to $165,000 on insurers that use preferred repairers or parts. The insurance industry warned yesterday that the bill, to be introduced later this month by independent MP, Richard Torbay, would increase their costs, reduce the quality of repairs and lead to higher premiums. But Labor will be under pressure to support it after a bitter and vocal campaign by the smash repair industry against NRMA and its parent company, IAG. The NSW Minister for Fair Trading, Diane Beamer, told Parliament last October the Government was investigating a similar proposal, called "anti-steering legislation", to allow consumers to choose their repairers. About 35 states in the US have such legislation. Ms Beamer said yesterday the proposed bill could lead to premium increases of $80 a year and she would prefer a negotiated settlement between NRMA and repairers. Her spokesman Steve Adams said: "We have to be concerned about anti-steering legislation which would not only impact IAG but other insurance companies as well." NRMA's care and repair system, introduced in July, requires customers to bring cars to a centre for assessment and allows preferred repairers to bid for work by examining online photos of the damage. The repair industry, led by the Motor Traders Association, says the system has caused job losses and unsafe repairs. Their claims were backed by a report in December by the Staysafe committee, which found the system resulted in shoddy repairs and should be suspended. Mr Torbay, the MP for the Northern Tablelands, said he wanted to "snooker" the major parties into adopting his private member's bill. "This bill will force the Government and Opposition to back their rhetoric," Mr Torbay said. SMH
© 2006 Newcastle Herald