RWO debate continues

The debate regarding repairable write-offs (RWO) is set to continue after a meeting this week where industry stakeholders agreed to further discussion and to look at different ways to deal with the issue.

The National Motor Vehicle Theft Reduction Council met in Sydney on Tuesday with police and other stakeholders pushing for an agreement to remove RWO vehicles as a category.

However, insurers represented at the workshop have been able to secure further discussion to see a way forward.

According to Melbourne-based panel shop operator and council member, Gerry Raleigh, the RWO category should be removed from the landscape in an attempt to reduce rebirthing of stolen cars and addressing the public safety issues of poorly repaired vehicles.

He said it was frustrating for police to have to go and tell someone who has just been lumbered with a $50,000 HP agreement that their car is stolen and them remove it, Raleigh told Paint and Panel.

He also highlighted one backyard operator who had handled 80 cars bought at auction as RWO vehicles and then repaired them and put them back on the road.

He believes that removing the RWO will assist insurers as a clamp down on rebirthing would result in a reduction of vehicle thefts and therefore savings.

In a statement, the Insurance Council of Australia welcomed the open dialogue at the national workshop on the management of RWOs, saying the general insurance industry supported efforts by today's workshop to improve the current system for the management of RWOs, and prevent profit-motivated vehicle theft.

However, it said the safety of vehicles was the responsibility of government agencies, which must ensure rigorous safety and compliance checking is undertaken during the re-registration process of RWOs and other unsafe vehicles.

According to Raleigh, the position of insurers was highlighted in a letter to NMVTRC chairman, David Morgan, in February this year seeking a "Cessation of NMVTRC's efforts to modify Repairable Write Off vehicle management practices, including State and Federal regulations and legislation (the general insurance industry has flagged that there will be a disproportionate impact on policyholders) and a refocusing of NMVTC efforts on law enforcement and compliance measures to address RWO risks where they exist in the community".