Used parts for new vehicle repairs

The Motor Traders Association of NSW is looking into claims a major insurer has forced repairers to use exchange and used parts for new vehicles still under warranty.

MTA's senior manager - divisional services, Greg Preston, said the organisation had been advised of an insurer's attempts in the Wollongong area to force its repairer network to quote exchange and used parts, upfront, for new vehicles still under manufacturer warranty.

The move was in breach of the Motor Vehicle Insurance and Repair Industry Code of Conduct which states:

7. Repair Warranties

7.1 An insurer will provide details in writing to repairers of the warranty cover the insurer provides to insured?s, including the insurer's responsibilities under lifetime warranties.

9. Disclosure Obligations

9.2 Insurers will disclose in their PDS their policy relating to the use of new, non-genuine and recycled parts, sub-let repairs and guarantees and warranties.

Preston said repairers should know their rights, reminding the industry that the code is mandatory in NSW. It is available at www.abrcode.com.au