The Federal Chamber of Automotive Industries (FCAI) has called on the wider insurance industry to follow IAG's lead on using genuine parts.
This is following IAG's announcement last month (IAG genuine parts announcement) that it had formed a series of partnerships with some leading manufacturers, and their authorised dealers, which allows IAG’s partner smash repairers to exclusively use new genuine parts.
Chief Executive Tony Weber commended IAG on its initiative and said all insurers should commit to road safety and better vehicle repairs by following IAG's lead.
"This move by IAG sends a strong signal to consumers and to the insurance and motoring industries. Today, we are a step closer to safer roads, safer cars, better repairs and the best in quality parts for Australian drivers," he said.
"IAG is the first insurer to commit to encouraging smash repairers to use genuine parts, which is a massive step forward for the safety of Australian consumers."
The policy change comes as engineering tests undertaken by the FCAI's Genuine is Best initiative 'continue to show the dangerous inferiority of non-genuine and counterfeit parts'.
"The writing is on the wall for Australian insurers. The evidence shows non-genuine is a risk, and as an industry we applaud IAG for pursuing this change in policy. Every Australian insurer should do the same.
"New genuine parts sourced from an automotive brand's authorised dealer are the safest, highest quality, most readily available, most efficient and easiest-to-use option for vehicle repairs."
Weber said the change was a wake-up call to car owners, and a reminder for them to review their insurance policies to ensure that only genuine parts are fitted in repairs.
"The FCAI is calling for car owners to review their product disclosure statements and find out exactly what their insurer's policy is on genuine parts. If your insurer cares about your safety, genuine parts should be used in every vehicle repair.
"The only way to ensure you are protecting yourself and your loved ones is to ensure genuine parts, acquired through the vehicle maker's authorised supply chain, are the only parts fitted to your car. Anything else is a risk. Genuine is always best," Weber said.