Updates Underway for the Motor Smash and Repair Code

Exciting changes are coming to the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct. Following an independent review last year, the Code is undergoing a significant overhaul to better support the industry and its participants.

The Code Administration Committee (CAC) is leading the charge, having finalised plans for a complete rewrite. They’ve also sought expert legal advice to ensure the updated Code is clear, actionable, and beneficial for everyone involved.

What’s Changing?

Reviewer Dr Michael Schaper proposed 15 recommendations in his report submitted last May, including:

• Clearer wording to improve governance and outcomes for consumers.
• Sanctions for non-compliance to strengthen accountability.
• Greater clarity on the role of artificial intelligence (AI) in the industry.
• Appointing an independent chairperson for the committee.
• Enhanced collaboration with regulators.

The voluntary Code, which started in 2006, is a joint effort by the Insurance Council of Australia and the Motor Trades Association of Australia. With these updates, the Code aims to meet the evolving needs of the automotive repair industry, ensuring it stays relevant in a time of rapid change.

Why Does It Matter?

Motor vehicle repairs are a big deal, making up 45% of all insurance claims in the 2020/21 financial year. That’s 1.76 million smash claims out of a total 3.9 million made by Australian consumers. With new technologies like AI shaping the way repairs are done, these updates will ensure the Code helps businesses and consumers alike navigate the future of the industry.

Stephen Jenkins, Chair of the MVIRI CAC, says, “The recommendations provide a roadmap to help the industry adapt to technological advancements and business challenges, ensuring sustainability for all participants.”

The CAC is committed to implementing these recommendations and has already met several times to ensure steady progress.

What’s Next?

The finalised rewrite is expected to bring simplicity and clarity, making it easier for all industry participants to understand and rely on the Code. The CAC is also working to appoint qualified individuals to lead the rewrite and implement the changes.

Stay tuned for more updates as the industry moves forward with these much-needed improvements.