MTA February 2022 SA

ADVOCACY
13
JULY 1 AMBITION
FOR NEW CODE
In the lead up to the State election, the MTA is urging both
major parties to move swiftly to implement amendments
to the Fair Trading Act that mandates the Motor Vehicle
Insurance and Repair Industry (MVIRI) Code of Conduct.
In 2021, the MTA achieved a landmark victory when
Parliament passed legislation to introduce enforceable
penalties for breaches of the Code.
“This is a major reform that had the support of all sides
of politics and so we feel it’s reasonable to expect this
to be up and running by the first of July 2022,” said Kaes
Cillessen, the MTA’s Industry and Government Engagement
Manager.
“What remains is for regulations to be drafted by the
government and the offices of the Small Business
Commissioner and Consumer and Business Services
prepared.
“We are expecting schedule of penalties within the
regulations, which will likely be expiation notices and
fines that the Small Business Commissioner can issue
for breaches of the Code of Conduct.”
Under the Fair Trading Act, expiation notices of up to
$6,000 can be issued but in practice, most industry codes
only go up to $4,000. The MTA is asking the government
to increase these closer to the $6,000 level.
The only other jurisdiction that has the Code mandated
is New South Wales, but there are no penalties for
breaches. Introducing penalties for breaches makes
South Australia a national leader and means that the
industry is accountable to the highest standards in
Australia for collision repairs.
Where disputes arise between motorists, repairers and car
insurance companies, the Small Business Commissioner
will have the power to mediate and impose penalties.
The changes will address long-standing problems in the
industry that are not in the best interests of consumers
and members. Disputes often centre on:
• difficulties in consumers accessing their repairer of
choice and claims of insurers steering consumers
toward their preferred network of repairers;
• the use of second-hand and/or non-original equipment
manufacturer parts in repairs and related safety,
warranty and liability concerns when using those parts;
• a lack of transparency of information, with consumers
often not being made fully aware by insurers of all the
details related to their repairs and/or insurance policies;
• disagreements over the methodology used by crash
repairers and insurers to assess the repairs needed,
and the cost of said repairs, to restore the motor
vehicle back to pre-accident condition, and the quote
negotiation process; and
• insurers choosing to provide cash settlements to
consumers instead of repairing their vehicles.
“We hope that reforms at both the State and Federal
level will improve the quality of repairs, as well as the
relationship between insurers and repairers, for the
benefit of the motoring public,” said Kaes.
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