BURDEN OF COURTESY CAR LIABILITY SHIFTS TO BODYSHOPS

Published 01/04/2014 00:00:00 in Press Releases

The National Association of Bodyshops (NAB) is concerned about a recent practice by a leading insurer asking repairers to provide insurance cover for third parties, under the repairers own motor trade policy.

Frank Harvey, Head of NAB comments, “Recently, a well-respected insurer has, without consultation, issued amendments to their approved repairer agreements with NAB members requiring them to provide insurance cover for third parties using a courtesy car.  Previously the insurer covered the courtesy car.  It looks like another miss-selling scandal in the making – it’s their responsibility, not repairers’ and represents a blatant liability shifting move by the insurer.

“It’s all the more concerning because this insurer has been championed as being one of the more responsible ones in their relationship with repairers.

“We’re very concerned about this practice becoming commonplace among other insurers and are urgently seeking a meeting with the insurer concerned on behalf of NAB members”.

NAB members have for some time been raising concern that they are pressured into accepting draconian terms as part of being an approved repairer for car insurers.  Their concerns have been raised by NAB with the Office of Fair Trading and the Competition Commission.

Harvey continues, “We’re gathering evidence and reporting our findings to the competition authorities. Bodyshops cannot keep absorbing these insurer liability shifting attempts”.

Meanwhile, NAB is to seek a meeting with the Association of British Insurers to try get pan-industry consensus around the supply of courtesy cars, including insurance cover.

 

ENDS

NOTES TO EDITORS:

Rupal Rawal, Communications Assistant
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk Email: rupal.rawal@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

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