IAG has made changes to its PDS and its online booking system to include choice of repairer and now offers not-at-fault drivers a hire car. This follows the Senate inquiry insurance industry report published last month which said that insurance PDS were unfit for purpose.
The option on the NRMA website for choice of repairer is ANY REPAIRER and the information provided to the customer for this option says: "In the event of an accident, your policy automatically includes access to our extensive Partner Repairer network. We partner with trusted businesses to deliver quality, safe repairs and have you back on the road as soon as possible.
"If you select Any Repairer you may use any licensed repairer of your choice, which may still include an NRMA Partner Repairer. NRMA will provide a lifetime guarantee on any repairs we authorise."
It then says more information are available in the PDS (see below for extract). The PDS have been redesigned with large print instead of small print and good graphics.
A spokesperson for IAG said: “We’re always looking at ways to improve services for our customers as well as providing affordable insurance options.
“We’re introducing a transparent, user-pays option for NRMA Insurance and RACV Insurance comprehensive motor policies that ensures customers and members only pay for choosing a repairer where they value that choice.
“Since 2012 IAG has been investing in our Partner Repairer Network to deliver safe, quality repairs for our customers. The strong relationships we have with our partner repairers helps us manage costs at a time when cars are getting more complex and expensive to repair. It’s fair this be reflected in what our customers pay.
“We’re proud to partner with almost 400 independent smash repairer businesses Australia-wide and our customers tell us they’re overwhelmingly satisfied with the service they receive.
“We’ve developed this option with our customers. Ultimately it will be up to customers of NRMA Insurance and RACV members to choose what’s best for them.
“We’re also delighted to be extending our hire car benefits for NRMA Insurance and RACV Insurance comprehensive motor polices when customers / members are not-at-fault in a collision.
"This new benefit will make the claims process even easier for our customers and members, helping them get on with their busy lives while their car is being repaired.
“To be eligible, we must agree the customer was not-at-fault and provide the contact details of the at-fault party. This benefit is available to customers regardless of where they get their car repaired.”
Paint & Panel editor Sam Street jumped online to see the price difference on choosing a repairer - for my Toyota Aurion it was $81 more expensive to insure comprehensively with choice of a repairer. Below is some of the information given to customers wishing choice of repairer on the NRMA PDS.
IAG PDS
If you are entitled to choose your own repairer to fix your vehicle, the repairer must have all necessary licences and authorisations required by law.
Once you’ve chosen a repairer, we will:choose the most suitable repair method for the type of damage to your vehicle and decide whether to authorise and pay for the reasonable cost to repair your vehicle, or decide whether to pay you the reasonable cost to repair your vehicle as determined by us. In determining the reasonable cost, we may consider several factors, including quotes from NRMA Partner Repairers, our nominated repair methods for the type of damage to your vehicle and reports from our assessors.
We are not responsible for making sure the repairer can complete the repairs when it suits you. Also, we don’t cover: any additional costs that may result if the repairer is delayed or has problems getting parts any repairs not authorised by us.
Inspections
If we ask, you must allow us to inspect your vehicle. If so, we will: tell you where you need to take your vehicle, or arrange for it to be towed to a repairer or other place we choose.