In response to ongoing complaints from the sector, the previous Government announced, on 31 August 2004, a Productivity Commission (PC) inquiry into the commercial relationship between smash repairers and insurance companies.
The PC's Report (PDF format) into the Smash Repair and Insurance Industry and the previous Government's Response (PDF format) to the Report were released on 19 August 2005.
The PC found the relationship between smash repairers and motor vehicle insurance companies had deteriorated to the degree that it recommended that the Australian Government facilitate and promote the development and implementation of an industry-wide Code of Conduct (the Code) in respect of the relationship between insurers and repairers as soon as possible. The Code is available in PDF format at the bottom of this page.
Ms Mary Urquhart was appointed to Chair the Smash Repair and Insurance Industry Implementation Taskforce on 10 November 2005. The Taskforce comprised ten representatives from: the Insurance Council of Australia, Suncorp Metway, Allianz Australia, Insurance Australia Group, AAMI, (2 from) Motor Trades Association of Australia, Motor Trades Association of Queensland, Motor Traders Association of New South Wales and the Victorian Automobile Chamber of Commerce.
The Taskforce agreed to the Code on 23 May 2006 acknowledging that not all aspects of the Code would be ready for implementation on the first day of operation.
The Code commenced on 1 September 2006.
For further information on any of the above, please email the Industry and Small Business Policy Division.