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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Motor Vehicle Repairs (Anti-steering)
Bill 2006
Contents
Page
Part 1 Preliminary
1 Name of Act 2
2 Commencement 2
3 Definitions 2
4 Act to bind Crown 3
Part 2 Regulation of the motor vehicle repair industry
Division 1 Coverage under an insurance policy
5 Prohibited limitations on coverage under an insurance
policy 4
6 Agreements between insurers and repairers 4
b06-700-33.p01
Motor Vehicle Repairs (Anti-steering) Bill 2006
Contents
Page
Division 2 Offences
7 Prohibition of referral fees and steering 4
8 Prohibition on requiring third party claimants to use
a particular repairer or parts 5
9 Advice to insured on use of a specific repairer 5
10 Prohibition on obtaining authority or agreement to
repair vehicle or to prepare a quotation 6
Part 3 Disclosure requirements
11 Requirement to provide insured with a disclosure notice 7
12 Requirement to provide third party claimant with a
disclosure notice 7
13 Information about repairs 8
Part 4 Ownership interests in motor vehicle repair
businesses
14 Prohibition on the holding or acquiring of an ownership
interest in a motor vehicle repair business 9
15 Transitional arrangements for insurers holding an
ownership interest in a motor vehicle repair business 9
Part 5 Miscellaneous
16 Regulations 10
Contents page 2
New South Wales
Motor Vehicle Repairs (Anti-steering)
Bill 2006
No , 2006
A Bill for
An Act to regulate aspects relating to the repair of an insured motor vehicle following
damage to the vehicle; and for other purposes.
Clause 1 Motor Vehicle Repairs (Anti-steering) Bill 2006
Part 1 Preliminary
The Legislature of New South Wales enacts: 1
Part 1 Preliminary 2
1 Name of Act 3
This Act is the Motor Vehicle Repairs (Anti-steering) Act 2006. 4
2 Commencement 5
This Act commences on 1 June 2006. 6
3 Definitions 7
In this Act: 8
disclosure notice means a notice referred to in section 11 or 12. 9
insurance policy means any contract of insurance between an insurer 10
and an owner of a motor vehicle in respect of damage to that motor 11
vehicle. 12
insured means an owner of a motor vehicle who has entered into a 13
contract of insurance with an insurer in respect of damage to that motor 14
vehicle. 15
insurer means any insurer writing motor vehicle insurance in a State or 16
Territory and includes an insurer's affiliates, employees, agents, 17
representatives and any other person authorised to act on its behalf. 18
motor vehicle means a motor vehicle (other than a light rail vehicle) or 19
trailer within the meaning of the Road Transport (General) Act 2005. 20
motor vehicle accident means an accident involving one or more motor 21
vehicles. 22
motor vehicle repair business means a business whose main activity is 23
the repair of motor vehicles. 24
ownership interest, in relation to a motor vehicle repair business, means 25
any interest in the business that gives the holder of the interest any 26
control in the way the business operates or any share in the profits of the 27
business. 28
repair has the same meaning as in the Motor Vehicle Repairs Act 1980, 29
and includes examine, detect faults in, adjust, carry out maintenance on, 30
overhaul, replace, alter and paint. 31
repairer means a person who carries on the business of repairing motor 32
vehicles pursuant to a licence under the Motor Vehicle Repairs Act 33
1980. 34
third party claimant means a person who makes a claim against an 35
insured for property damage arising from a motor vehicle accident. 36
tow has the same meaning as in the Tow Truck Industry Act 1998. 37
Page 2
Motor Vehicle Repairs (Anti-steering) Bill 2006 Clause 4
Preliminary Part 1
tow truck operator has the same meaning as in the Tow Truck Industry 1
Act 1998. 2
towing authorisation has the same meaning as in the Tow Truck 3
Industry Act 1998. 4
4 Act to bind Crown 5
This Act binds the Crown in right of New South Wales and, in so far as 6
the legislative power of the Parliament of New South Wales permits, the 7
Crown in all its other capacities. 8
Page 3
Clause 5 Motor Vehicle Repairs (Anti-steering) Bill 2006
Part 2 Regulation of the motor vehicle repair industry
Part 2 Regulation of the motor vehicle repair industry 1
Division 1 Coverage under an insurance policy 2
5 Prohibited limitations on coverage under an insurance policy 3
(1) An insurer must not directly or indirectly limit its coverage under an 4
insurance policy: 5
(a) by specifying the brand, type, kind, age, vendor, supplier or 6
condition of parts or products that may be used to repair the 7
motor vehicle, or 8
(b) by restricting the insured from choosing a repairer to repair any 9
damage to the motor vehicle that is covered under the policy, or 10
(c) by imposing any additional charge on the insured for opting to 11
choose their own repairer to repair any damage to the motor 12
vehicle that is covered under the policy. 13
(2) A provision of an insurance policy is void to the extent to which it 14
contravenes subsection (1). 15
6 Agreements between insurers and repairers 16
(1) A contract between an insurer and a repairer, including an agreement 17
under which the repairer agrees to extend discounts for parts or labour 18
to the insurer, must not include any provision that entitles the insurer to 19
direct an insured's vehicle to that repairer. 20
(2) A provision of a contract is void to the extent to which it contravenes 21
subsection (1). 22
Division 2 Offences 23
7 Prohibition of referral fees and steering 24
An insurer must not, in connection with the repair of a motor vehicle 25
under an insurance policy: 26
(a) suggest to or advise an insured to choose a particular repairer to 27
repair the motor vehicle, or have a repairer prepare a quotation 28
for the repair of a motor vehicle, otherwise than in accordance 29
with section 9, or 30
(b) solicit or accept a referral fee or gratuity in exchange for referring 31
an insured to a specific repairer, or 32
(c) state or suggest to an insured that a specific repairer must or 33
should be used by the insured in order for the repair to be covered 34
under the policy, or 35
Page 4
Motor Vehicle Repairs (Anti-steering) Bill 2006 Clause 8
Regulation of the motor vehicle repair industry Part 2
(d) require a repairer to use a particular brand, type, kind, age, 1
vendor, supplier or condition of parts or products in the repair of 2
the motor vehicle, or 3
(e) restrict an insured's right to choose a repairer by requiring the 4
insured to travel an unreasonable distance to have the motor 5
vehicle repaired under the policy, or 6
(f) without the consent of the insured, make arrangements with a tow 7
truck operator to have the motor vehicle towed directly to a 8
repairer chosen by the insurer. 9
Maximum penalty: 1,000 penalty units (in the case of a first offence) or 10
1,500 penalty units or imprisonment for 12 months or both (in the case 11
of a second or subsequent offence). 12
8 Prohibition on requiring third party claimants to use a particular repairer 13
or parts 14
An insurer must not, in connection with the repair of a motor vehicle 15
owned by a third party claimant: 16
(a) require the third party claimant to choose a particular repairer to 17
repair the motor vehicle, or 18
(b) require the third party claimant to choose a particular brand, type, 19
kind, age, vendor, supplier or condition of parts or products in the 20
repair of the motor vehicle. 21
Maximum penalty: 1,000 penalty units (in the case of a first offence) or 22
1,500 penalty units or imprisonment for 12 months or both (in the case 23
of a second or subsequent offence). 24
9 Advice to insured on use of a specific repairer 25
(1) If, without any form of prompting by the insurer, an insured asks an 26
insurer to suggest or advise a suitable repairer to repair damage to a 27
motor vehicle covered under an insurance policy and: 28
(a) there are at least 6 repairers operating a licensed motor vehicle 29
repair business within a radius of 10 kilometres from either the 30
home of the insured or some other place nominated by the insured 31
that the insurer considers suitable to carry out the required 32
repairs, the insurer must provide the insured with a list of at least 33
6 such repairers, or 34
(b) there are fewer than 6 repairers operating a licensed motor 35
vehicle repair business within a radius of 10 kilometres from 36
either the home of the insured or some other place nominated by 37
the insured that the insurer considers suitable to carry out the 38
required repairs, the insurer must provide the insured with a list 39
of all such repairers. 40
Page 5
Clause 10 Motor Vehicle Repairs (Anti-steering) Bill 2006
Part 2 Regulation of the motor vehicle repair industry
(2) If an insurer requires a second quotation for the repair of a motor 1
vehicle, such a quotation may be obtained: 2
(a) from a repairer of the insured's choice, or 3
(b) if, without any form of prompting by the insurer, the insured asks 4
the insurer to suggest or advise a suitable repairer to prepare the 5
quotation, from a list of repairers provided by the insurer in 6
accordance with subsection (1) (a) or (b), as the case requires. 7
10 Prohibition on obtaining authority or agreement to repair vehicle or to 8
prepare a quotation 9
(1) A person must not obtain or attempt to obtain from another person the 10
other person's authority or agreement: 11
(a) for the preparation of a quotation for the repair of a motor vehicle 12
that has been involved in an accident, or 13
(b) to find and engage a repairer to repair a motor vehicle that has 14
been involved in an accident, 15
before the motor vehicle has been towed to the destination specified in 16
the towing authorisation or to another destination in accordance with the 17
Tow Truck Industry Act 1998. 18
(2) Subsection (1) (a) applies regardless of on whose behalf the offering, 19
obtaining or attempting is done. 20
Maximum penalty: 50 penalty units (in the case of a first offence) or 100 21
penalty units or imprisonment for 12 months or both (in the case of a 22
second or subsequent offence). 23
Page 6
Motor Vehicle Repairs (Anti-steering) Bill 2006 Clause 11
Disclosure requirements Part 3
Part 3 Disclosure requirements 1
11 Requirement to provide insured with a disclosure notice 2
(1) An insurer must provide the insured with a disclosure notice in the 3
prescribed form: 4
(a) within 5 business days of the date on which the insured enters 5
into an insurance policy with the insurer, and 6
(b) within 5 business days of the date of the renewal of the insurance 7
policy, and 8
(c) at the time the insured makes a claim under the insurance policy. 9
Maximum penalty: 50 penalty units (in the case of a first offence) or 100 10
penalty units or imprisonment for 12 months or both (in the case of a 11
second or subsequent offence). 12
(2) An insurer is taken to have complied with subsection (1) (c) if: 13
(a) in the case of a claim made in person, the insurer provides the 14
insured with a disclosure notice at the time the claim is made, or 15
(b) in the case of a claim made over the telephone, the insurer: 16
(i) reads the following disclosure statement to the insured at 17
the time the claim is made: 18
"By law, you have the right to select where your vehicle is 19
repaired and the parts used for repairs. However, we are 20
not required to pay more than a reasonable amount for 21
those repairs and parts.", and 22
(ii) provides the insured with a disclosure notice within 23
5 business days of the claim being made, or 24
(c) in the case of a claim made in writing, the insurer provides the 25
insured with a disclosure notice within 5 business days of the 26
claim being made. 27
12 Requirement to provide third party claimant with a disclosure notice 28
(1) An insurer must provide a third party claimant with a disclosure notice 29
in the prescribed form at the time the third party claimant makes a claim 30
against the insurer. 31
Maximum penalty: 50 penalty units (in the case of a first offence) or 100 32
penalty units or imprisonment for 12 months or both (in the case of a 33
second or subsequent offence). 34
(2) An insurer is taken to have complied with subsection (1) if: 35
(a) in the case of a claim made in person, the insurer provides the 36
third party claimant with a disclosure notice at the time the claim 37
is made, or 38
Page 7
Clause 13 Motor Vehicle Repairs (Anti-steering) Bill 2006
Part 3 Disclosure requirements
(b) in the case of a claim made over the telephone, the insurer: 1
(i) reads the following disclosure statement to the third party 2
claimant at the time the claim is made: 3
"By law, you have the right to select where your vehicle is 4
repaired and the parts used for repairs. However, we are 5
not required to pay more than a reasonable amount for 6
those repairs and parts.", and 7
(ii) provides the third party claimant with a disclosure notice 8
within 5 business days of the claim being made, or 9
(c) in the case of a claim made in writing, the insurer provides the 10
third party claimant with a disclosure notice within 5 business 11
days of the claim being made. 12
13 Information about repairs 13
(1) An insurer must not prohibit a repairer from disclosing to an insured or 14
a third party claimant information about the parts or products the 15
repairer has used in the repair of the insured's or third party claimant's 16
motor vehicle and a repairer must disclose to an insured or third party 17
claimant such information about parts or products the repairer has used 18
in the repair of the insured's or third party claimant's motor vehicle. 19
Maximum penalty: 50 penalty units (in the case of a first offence) or 100 20
penalty units or imprisonment for 12 months or both (in the case of a 21
second or subsequent offence). 22
(2) For the purposes of subsection (1), the information that must be 23
disclosed includes a description of the parts or products, the 24
manufacturer of the parts or products, the source of the parts or products 25
and the amounts charged to the insurer for the parts or products and 26
associated labour. 27
Page 8
Motor Vehicle Repairs (Anti-steering) Bill 2006 Clause 14
Ownership interests in motor vehicle repair businesses Part 4
Part 4 Ownership interests in motor vehicle repair 1
businesses 2
14 Prohibition on the holding or acquiring of an ownership interest in a 3
motor vehicle repair business 4
From 1 September 2006, an insurer may not hold or acquire any 5
ownership interest in a motor vehicle repair business located in New 6
South Wales. 7
Maximum penalty: 1,000 penalty units (in the case of a first offence) or 8
1,500 penalty units or imprisonment for 12 months or both (in the case 9
of a second or subsequent offence). 10
15 Transitional arrangements for insurers holding an ownership interest in 11
a motor vehicle repair business 12
(1) This section applies during the period that commences on the 13
commencement of this Act and ends at the beginning of 1 September 14
2006. 15
(2) If an insurer holds an ownership interest in any motor vehicle repair 16
business in New South Wales, the insurer: 17
(a) must disclose its interest to the insured in any disclosure notice 18
provided to the insured in accordance with this Act, and 19
(b) must not stipulate the sources from which that motor vehicle 20
repair business must obtain parts or products, and 21
(c) must not supply parts to that motor vehicle repair business, and 22
(d) must not offer an incentive or provide compensation to a person 23
in exchange for the person referring an insured to that motor 24
vehicle repair business. 25
Maximum penalty: 1,000 penalty units (in the case of a first offence) or 26
1,500 penalty units or imprisonment for 12 months or both (in the case 27
of a second or subsequent offence). 28
Page 9
Clause 16 Motor Vehicle Repairs (Anti-steering) Bill 2006
Part 5 Miscellaneous
Part 5 Miscellaneous 1
16 Regulations 2
The Governor may make regulations, not inconsistent with this Act, for 3
or with respect to any matter that by this Act is required or permitted to 4
be prescribed or that is necessary or convenient to be prescribed for 5
carrying out or giving effect to this Act. 6
Page 10
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