Edition 40, November 2006

Mandatory code of conduct for the New South Wales smash repair industry

A nationally developed code of conduct for the smash repair industry which was previously voluntary is now law in New South Wales.

The code is now mandatory for all insurers who signed up to the voluntary code and all Motor Traders' Association members. Insurers and repairers who have not signed up to the voluntary code have until 30 March 2007 to become compliant.

The enshrining of the code in law is expected to make the industry fairer for repairers, insurers and consumers. It has been welcomed by the Motor Traders' Association, licensed smash repair businesses and insurers.

The code provides for:

  • a transparent and independent external disputes resolution mechanism
  • the requirement for full disclosure in preferred smash repairer arrangements
  • retention of preferred smash repair status on the sale of a business
  • the requirement for full disclosure in quoting of work and payment
  • standards for the allocation of responsibility for repair warranties
  • standards for payment terms
  • up-front disclosure on whether insurance policies provide choice of repairer.

Areas of the new law relating to network repairer schemes and disclosure obligations commence on 30 March 2007.

Penalties apply for breaches of the code, however these will only be exercised if dispute resolution practices are unsuccessful.

Penalties include court injunctions, orders to disclose information, trading prohibition orders, civil action for damages and court orders to compensate for damage.

For more information contact the New South Wales Office of Fair Trading on 133 220 or visit www.fairtrading.nsw.gov.au

This page was generated on 30 September, 2009

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