MTA NSW Welcomes Move to Examine Conduct of Vehicle Insurance and Smash Repair Industry
The Motor Traders’ Association of NSW (MTA
NSW) welcomes the Federal Government’s decision to examine the regulatory
settings in the commercial conduct of the car insurance and smash repair
industry, which is potentially transformational.
Supported by MTA NSW, the Motor Trades
Association of Australia (MTAA), its Member Associations, and Australian Motor
Body Repairers Association (AMBRA) representations to regulators, separate
jurisdictional and parliamentary inquiries in three States and the Federal
Government have led to this critical national examination of an industry
plagued by problems created by influential, dominant market participants.
MTAA CEO, Richard Dudley said Assistant
Treasurer Sukkar and the Morrison Coalition Government have not only listened
to concerns about significant market power imbalances detrimental to consumers
and small businesses but investigated and acted to address them.
‘In the 46th Parliament, the
Morrison Government has delivered reform in new car franchising, provided the
law and scheme to mandate motor vehicle service and repair information and
introduced improved unfair contract terms. Now the Treasury Department has been
tasked to examine whether existing regulatory settings effectively address
concerns about commercial conduct in the motor vehicle insurance and smash
repair industry,’ Dudley said.
The action by the Government follows decades
of representations and advocacy for recognition of the impact of constraining
commercial conduct and detrimental behaviours by powerful insurance companies
on smash repair small businesses and consumers.
MTA NSW CEO, Stavros Yallouridis believes the
voluntary code and current regulatory settings do not deter unwanted or
unwarranted conduct and behaviours or address the impacts of a significant
market power imbalance by some dominant insurance company participants.
‘MTAA and Members, supported by MTA NSW,
recently highlighted the lack of recognition and adequate compensation for
repairers forced to absorb price increases on materials and supplies,’
examination is an acknowledgement that the current industry settings, with a
voluntary code, unfairly advantage large insurers over small business and do
not promote a healthy and efficient Smash Repair Industry. The Government has
recognised the need for reform, including prescribing a mandated Code of
Conduct as a long-term solution,’ he added.