IAG, one of the largest insurance groups in Australia has introduced an “any repair” option in some of its policies that allows a motorist a free choice of repairer, at an extra cost. However, the move has been heavily criticised by many repairers as means of actually getting drivers to sign away their consumer rights.

IAG offers insurance in Australia through its own brand and brands such as NRMA and RACV. It has now introduced a clause in many customer policies that allows them a free choice of repairer, but at an extra cost. If a customer does not opt for this option then they effectively are agreeing to use the insurers designated repairer and have no independent choice.  Many believe this new policy is an attempt to get around competition laws and needs to be strongly resisted by the industry.

Jeff Williams from the Australian Motor Body Repairer's Association says, “Having the two largest insurers control who and what price is paid for repairs calls the future of our industry remaining a competitive, healthy environment into question. Under these NRMA and RACV policies it is quite clear these insurers are quietly confident that today’s consumers, under increasing pressure to maintain budgets, will opt not to increase the cost of their policy whilst not considering the potential consequences.” He added, "It is clear that both entities ignore our country’s competition policy and it would also appear that without business owners knocking on the door of their local politician, the status quo will continue. Independent body repairers need to take action.”

This is an alarming development as effectively by ticking a box a consumer is losing all rights to repair choice, something with significant implications for non approved bodyshops. The legality of the clauses has already been called into question and competition authorities in Europe need to closely monitor the situation to ensure such a practice is not allowed to develop here.