MTA July 2023 SA
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32<br />
CONSUMER AFFAIRS<br />
Commissioner for<br />
Consumer Affairs,<br />
Dini Soulio.<br />
New Disclosure Requirements<br />
for Vehicle Repairs<br />
On 1 June <strong>2023</strong>, new laws<br />
spearheaded by the <strong>MTA</strong> commenced<br />
to help consumers be better informed<br />
about relationships between motor<br />
vehicle insurers and repairers.<br />
Under amendments to the Fair<br />
Trading Act 1987, motor vehicle<br />
insurers must now tell policy holders<br />
about any relevant interest they<br />
have in a repairer and whether policy<br />
holders have a choice of repairer.<br />
Below, the Commissioner for<br />
Consumer Affairs, Dini Soulio,<br />
answers some key questions about<br />
what the changes mean for industry<br />
and consumers.<br />
What will motor vehicle<br />
insurers need to do?<br />
Motor vehicle insurers need to tell<br />
policy holders about any relevant<br />
interest the insurer has in relation to<br />
a particular repairer, such as if they<br />
have a financial interest or a contract<br />
with the repairer. Ad-hoc or one-off<br />
arrangements do not need to be<br />
disclosed.<br />
Disclosure must occur before an<br />
insurer engages or authorises a<br />
particular repairer to undertake<br />
repairs under an insurance policy.<br />
How do they need to disclose<br />
this information?<br />
Insurers must publish a list of<br />
repairers they have an interest in<br />
(a statement of relevant interest)<br />
on their websites.<br />
They should also provide these<br />
statements directly to policy holders,<br />
and let them know they are available<br />
on their website.<br />
What else do insurers need<br />
to let policy holders know?<br />
Insurers now need to let policy<br />
holders know whether or not they<br />
have a choice of repairer.<br />
They must do this whenever a person<br />
enters into an insurance contract,<br />
renews a policy or makes a claim.<br />
Why have these changes<br />
been introduced?<br />
The changes are about increasing<br />
the transparency of relationships<br />
between insurers and repairers.<br />
By enhancing consumer awareness<br />
regarding choice of repairer, informed<br />
decisions can be made. Often,<br />
this information is only included<br />
in Product Disclosure Statements<br />
and may be missed by consumers.<br />
This will benefit consumers and<br />
support transparent, informed,<br />
effective and cooperative<br />
relationships between motor<br />
vehicle insurers and repairers.<br />
What is the role of Consumer<br />
and Business Services (CBS)<br />
in this change?<br />
CBS is responsible for administering<br />
the Fair Trading Act and we will be<br />
monitoring the industry to make<br />
sure they are complying with the<br />
requirements and acting if insurers<br />
are not doing what is required.<br />
A six month grace period will apply<br />
until 1 December <strong>2023</strong> to allow the<br />
industry to become fully compliant<br />
with the new provisions.<br />
Other changes have been made<br />
to the motor vehicle insurance<br />
and repair industry, including the<br />
introduction of a Code of Conduct<br />
for motor vehicle insurers and<br />
repairers. The Code of Conduct is<br />
administered by the South Australian<br />
Small Business Commissioner<br />
(<strong>SA</strong>SBC). For more information<br />
visit the <strong>SA</strong>SBC website .<br />
“The changes are<br />
about increasing<br />
the transparency<br />
of relationships<br />
between insurers<br />
and repairers.”<br />
mtasant.com.au | Back to Contents
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