The Australian collision repair industry is set for a major regulatory shift as the Motor Vehicle Insurance and Repair Industry Code of Conduct undergoes a long-awaited review. This initiative, led by the Code Administration Committee (CAC), aims to address long-standing concerns from repairers and insurers while ensuring a fair and transparent framework for the industry.
Why the Review Matters
The Code of Conduct has played a crucial role in governing relationships between repair shops and insurance companies since its introduction. However, as vehicle technology advances and consumer expectations evolve, many in the industry feel the code needs updates to better reflect modern repair challenges.
Key areas expected to be reviewed include:
✔ Dispute resolution processes – Improving fairness and efficiency in handling repairer-insurer disagreements
✔ Repair authorizations and turnaround times – Addressing delays and ensuring fair treatment for repairers
✔ Transparency in insurer-repairer relationships – Reducing conflicts over repair costs, labor rates, and OEM vs. aftermarket parts
The Industry’s Response
Many repairers have long voiced concerns about the balance of power in negotiations with insurers, particularly regarding repair costs and the use of non-OEM parts. With this review, industry leaders hope to see stronger protections for repair businesses, ensuring they can operate profitably while maintaining high-quality repairs.
On the other hand, insurers are pushing for greater efficiency and cost management, citing rising repair costs and the increasing complexity of modern vehicles.
What’s Next?
A draft version of the updated Code of Conduct is expected in early 2025, with opportunities for industry feedback before implementation. Repairers, insurers, and stakeholders will need to stay engaged in the process to ensure a balanced and fair outcome for all parties.
With major changes on the horizon, Australia’s collision repair industry is at a turning point. Stay tuned to Collision Feed for the latest updates on this evolving story.
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