Insurance companies have a responsibility to guarantee their contractors are fitting genuine parts during warranty periods on vehicles being repaired.

A serious matter surrounding the fitting of genuine parts to damaged motor vehicles repaired through insurance companies has recently been brought to AADA’s attention.

Following the signing of the Agreement on Access to Service and Repair Information for Motor Vehicles 2014 (Agreement) in December, questions are being raised about how insurance companies will ensure their repairers install genuine (and non-genuine) parts compliantly.

This is especially relevant now, considering the Agreement’s requirement that independent repairers disclose whether they’re fitting genuine (OEM recommended) or non-genuine (sourced from an independent manufacturer/supplier) parts in the cars they service.
It’s AADA’s aim to ensure that insurance companies have in place an effective process which makes all of their contractors aware of the applicable warranty on vehicles they repair.

Vehicle warranties in Australia vary considerably between manufacturers, and vague terms in Product Disclosure Statements (PDS) like ‘standard manufacturer warranty’ don’t come close to covering the diverse range of warranties on new cars in Australia.
Aside from the differing number of ‘standard’ years and kilometres included in OEM warranties, variables like extended warranties are often not taken into account.

Even in situations where repair contractors are being appropriately informed about when a vehicle warranty has expired, making sure that consumers are made aware about the fitting of non-genuine parts should be a priority of insurance companies as well.

‘Dedication to compliance should always start from the top’ explains AADA Chairman Ian Field.

‘The recent Agreement to ensure that consumers are advised when non-genuine parts are fitted to their vehicles has changed the level of disclosure needed on behalf of independent repairers’ he said.

‘AADA would appreciate an understanding of how the insurance industry will make certain that contracted repairers adhere to this new agreement as well as how they make the important distinction between when to install genuine parts during the “true” warranty period.’

This matter will be under ongoing investigation by the AADA which is committed to ensuring consumers benefit from the newly signed Agreement.