New laws requiring insurers to be more upfront with their policyholders could be in place as soon as December, as the South Australian State Government progresses its election commitment to the MTA and the collision repair industry.

The State Government has recently shared its draft Fair Trading Act Insurers and Repairers Regulations for consultation with a proposed commencement date of 30 November 2022.

The Fair Trading (Motor Vehicle Insurers and Repairers) Amendment Act 2021 follows years of advocacy from the MTA, including a parliamentary inquiry into the vehicle insurance and repair industry. Importantly, the laws will:

• require insurers to disclose to their policyholders whether their product allows for choice of repairer
• require insurers to disclose whether they have a financial or contractual relationship with a repairer they refer a policyholder to; and
• mandate the Motor Vehicle Insurance and Repair Industry Code of Conduct in South Australia with penalties for breaches.

The draft regulations seen by the MTA would also require insurers to maintain a list of all relevant relationships, financial or contractual, on their website.

The new laws have positioned South Australia as a nation leader in supporting small, medium and family-run businesses in the collision repair industry who have long had frustrations with behaviours such as the steering of consumers. The MTA also expects a net benefit to consumers who will be able to make informed decisions about their insurance, vehicle and the choice to support local businesses in their community.

At the MTA’s February Industry Advisory Council meeting, then Opposition Leader, now Premier, Peter Malinauskas committed to implementing the laws and all indications are that we are on track to deliver this by the end of the year.

We will be in touch with the Body Repair Specialists Division as we learn more about the final version of the regulations to be gazetted, as well as a timeline to go live.

Should members have any enquiries about the laws and what this will mean for their business, please contact MTA Policy and Communications Manager, Kaes Cillessen on 8291 2000 or by email at kcillessen@mtasant.com.au.