Proposed changes to the motor smash repair code reflect “a bias towards insurers” and must be rejected, the Victorian Automotive Chamber of Commerce says.

The trade body has instead called for different reforms, including mandatory payment for repair estimates requested by insurers; reciprocal time frames requiring insurers to accept or reject estimates within five business days; and fair dispute resolution processes with appropriate cost allocation.

It says provisions in the draft code give insurers excessive control over repair methodologies, parts selection and pricing structures.

It points to clauses highlighting “shifts in authority that legitimise insurer overreach” and says the draft “fails to address the power imbalances between insurers and repairers, disregards the professional expertise of automotive repair specialists, and lacks the structural reform required to ensure the integrity and viability of a truly self-regulating industry”.

Chamber CEO Peter Jones said: “Rather than creating a fair and balanced regulatory framework, this draft threatens to entrench the existing power imbalances that have plagued our industry for decades.”

The trade body has made a submission on the draft Motor Vehicle Insurance and Repair Industry Code of Conduct after commissioning barrister Michael Whitten to examine the document.

“His analysis identified significant technical drafting issues and highlighted how the draft code reflects a bias towards insurers while failing to support fair market conditions,” the chamber said.

Chamber members in Victoria and Tasmania also provided feedback.  

“The depth of concern expressed by our members ... has been extraordinary,” Mr Jones said. “From small family-owned workshops to larger repair operations, the message has been consistent – this draft code does not address the fundamental issues facing our industry.”

The code’s administration committee – drawn from the Insurance Council of Australia and the Motor Trades Association of Australia – ended its public consultation yesterday.

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