RWO decision stabilises industries future across Australia

Greg Preston, Motor Traders Association of NSW divisional manager, applauds the stance
on banning repairable write-offs and looks to a national approach to the issue.

It stands to reason, if a licensed or accredited motor body repairer cannot safely and economically repair a structurally and safety related damaged vehicle, then it is almost unconscionable to think that anybody else can or should.

MTA NSW has long been campaigning for all vehicles that have sustained severe structural and safety related damage that are written-off by Insurers should be classified as statutory write off’s and should never to be re-registered and sold back to an unsuspecting public. For NSW this will now be a reality.

At the heart of this decision, for which the NSW Labour Government’s Minister for Transport, David Campbell, should be applauded for is showing how ministerial responsibility should be exercised to protect the welfare of the general public.

MTA is of the belief that the opponents of this decision who have gone to great lengths to delay the decision making process, have only managed to forestall, but not stop, this decision. These opponents will continue to oppose any similar decisions in other jurisdictions on how these vehicles in other parts of Australia should be dealt with.

The National Motor Vehicle Theft Reduction Council, a council funded by insurers, is holding another meeting on the management of written off vehicles, this time in Melbourne. The last one was in Sydney, in the middle of last year. Whilst there are complex issues around the management of written off vehicles, Minister Campbell has found a way of simplifying this process – by banning them.

MTA NSW has bought a re-registered written off vehicle; the same vehicle that the minister used to show the general public how dangerous these vehicles are. These are the very vehicles that Insurers are all too quickly writing off, only to be sold at auction, repaired, re-registered, and old back to unsuspecting members of the public.

But that’s not their problem – they no longer own it. There is no further legal responsibility! Or should there Be?

The insurance industry has the responsibility under the Motor Vehicle Insurance and Repair Industry Code of Conduct to ensure that the correct method of repair is being used that maintains the structural integrity and safety of the vehicle which provides protection to consumers and to other members of the general public under liability and warranty conditions.

This liability should be used to ensure that these vehicles are properly and responsibly disposed of once the insurer deems it no longer a viable option to be repaired using manufacturers specifications or where required the applicable Australian design rules.

Key industry stakeholders representing large and small businesses from across Australia have directly expressed their support for this decision. With such a decision being undertaken, along with the improvements to the safety and well being of the general public, other economic benefits are expected to flow through our society, some of those being for:

•    Public savings in law enforcement through reduced resources required for stolen and re-birthed vehicles.

•    Public savings in expensive court actions and drawn out court proceedings.

•    Reduced complaints to Government agencies, OFT, RTA, Stay Safe Committee.

•    Reduced insurance costs – less vehicles being stolen for rebirthing activities, in NSW at least.

•    Motor Body Repair Industry increased access to more recycled parts.

•    Employment opportunities in the motor body repair and parts recycling industries.

•    Environmental benefits with using more recycled parts and reducing waste.

MTA NSW urges those members of the public that have purchased one of those 20,000 re-registered written off vehicles in NSW in 2009 alone, to undertake a structural integrity and safety inspection.

MTA NSW will continue to pursue this and other matters in the best interest of the general public, small businesses represented by the motor body repair and parts recycling industries.