Ireland's Publication for the refinishing & associated Industries

NAB questions claims management organisations on payment processes

The National Association of Bodyshops (NAB) in the UK has recently written to leading motor insurance claims management companies (CMCs), in the wake of ongoing market speculation and uncertainty over the future of some who outsource vehicle body repairs following an accident.

The letter from Frank Harvey, Head of NAB, poses a number of detailed questions about payment terms and methods used by CMCs to handle clients’ funds in order to establish what financial risk (if any) bodyshops and consumers may have when dealing with them.
Harvey comments: “Many bodyshops have been left as unsecured creditors through previous failures of motor insurance claims management companies.  This has not only financially damaged their businesses, but it has also triggered collateral reputational damage with consumers and insurer clients.  Unpaid debts for repairs that have been carried out following previous failures have run into tens of millions of pounds.
“I hope that the response we receive enables us to provide some reassurance to our members, that any money owed to bodyshops for vehicle repairs is being held in separate ring-fenced client accounts.
“The NAB wants to see a change in legislation, where vehicle insurers are responsible for the debts incurred by intermediary claims companies they use. We are currently lobbying government and its agencies, insurers and the CMCs to reform relationships between insurers and those involved in motor insurance claims.”