The way forward with smash repairers

In 2005/06 we saw our relationship with the NSW Preferred Smash Repair network come under pressure following the introduction of Care & Repair, a motor repair system that we have been operating successfully in other Australian states for some years.

“The landscape has fundamentally shifted,” says David Brown, Head of Claims and Assessing for NRMA Insurance. “There are fewer cars on the road because of the price of petrol, cars are of a better quality, and there have been fewer accidents because we haven’t had a spate of really bad weather. That directly affects the smash repair industry – the demand for their services has declined.”

“At the same time, we are conscious that our Preferred Smash Repairers are reliant on us for their wellbeing, and, in turn, we rely on them.”

“Our smash repairers are an extension of our own business. They help us to better serve our customers and ensure cars get back on the road quickly, cost effectively and to a high standard. Building a sustainable repair industry is in all our best interests.”

In only five years, the network has grown from 48 repairers to more than 410.

“We have listened to their concerns and made some changes to our system as a result,” says David. “We’re moving into a new era with our smash repairers.”

“An important milestone is our participation in the development of a Federal voluntary code of conduct.”

The code is intended to promote transparent, informed, effective and cooperative relationships between smash repairers and insurers. It broadly covers dispute resolution; transparency about repairer arrangements; repair warranties; and repairer payment times.

“It goes without saying that we intend to fully comply with the terms of the Code and will begin to implement from September 2006,” says David.

In fact, NRMA Insurance has already independently undertaken a number of the initiatives laid out in the code. A dispute resolution process has been in operation for several years, providing repairers with an objective avenue for resolving issues and concerns.

And, in terms of repairer payment times, NRMA Insurance is already well within the 30-day timeframe outlined in the code. As part of our commitment to being transparent, we publish on our website the time it takes to pay smash repairers.