Motor vehicle repair industry

The Motor Vehicle Insurance and Repair Industry Code of Conduct is effective from 1 May 2017.

There are more than 4,200 smash repair businesses in NSW.

The NSW Government and the Office of the NSW Small Business Commissioner (OSBC) have been working with the motor vehicle repairs industry to amend the industry Code of Conduct as a result of recommendations made by the NSW Parliament Select Committee on the Motor Vehicle Repair Industry.

The new mandatory Code promotes transparent, informed, effective and cooperative relationships between smash repairers and insurance companies. The Code also specifies standards of fair trading, process and transparency in their relationships. In addition, it provides for efficient and fair dispute resolution processes for the industry.Smash repair industry factsheet

The Code will be administered by the industry’s Code Administration Committee (CAC) which comprises three members from the Motor Traders Association of Australia (MTAA) and three from Insurance Council of Australia (ICA).

Visit abrcode.com.au for more information about the Code.

Who does the Code apply to?

The Code applies to all signatories in the motor vehicle repair industry nationally.

Compliance with the Code is mandated in NSW and is voluntary in other States.

What has changed and how will it affect businesses?

  • Mandated compliance of the Code in NSW.
  • Minimum training and experience requirements for estimators and assessors.
  • A NSW Government facilitator has been appointed by the Australian Small Business Family Enterprise Ombudsman to help the CAC progress initiatives for the national industry.
  • The NSW Government will also appoint neutral parties to conduct mediation and determinations of disputes.
  • The Code now includes an expert determination process for complaints where mediation has been unsuccessful.
  • This results in final and binding decisions that are legally enforceable.
  • Mandatory reporting requirement of any unsafe repairs.
  • Future changes will include guidelines for when assessments should be conducted following the submission of an estimate by repairers; and regulations and guidelines for the use of photographs in the estimation/assessment process.