NSW: Insurance companies start campaign against legislation

AAP General News (Australia)
04-01-2006
NSW: Insurance companies start campaign against legislation

SYDNEY, April 1 AAP - Insurance companies have launched an advertising campaign opposing
an "anti steering" bill introduced this week into the NSW parliament.

The bill, introduced on Friday by independent MP Richard Torbay, would ban insurers
from forcing customers to take damaged vehicles to specified repairers.

But the Insurance Council of Australia (ICA) today described the legislation as "anti-motorist"

in full page advertisements in The Sydney Morning Herald and The Daily Telegraph newspapers.

The ad claims the legislation will force up motorists' premiums by $80 per policy while
at the same time putting repair quality at risk.

ICA spokesman Rod Frail said the whole insurance industry was worried about the effect
the legislation would have on motorists.

"We're not the only ones that think that," Mr Frail told AAP.

"The Consumers Association has written to the premier, the productivity commission
report last year said it would be a costly step.

"So there is a lot of support for the view that this will be bad for consumers."

But Mr Torbay said he would not be discouraged or intimidated by the ICA's extensive
advertising campaign.

"I feel a bit like David and the insurance companies and their highly paid PR consultants
are Goliath," he said.

"The insurance giants do not want to see anti-steering laws in NSW and will do everything
in their power to stop it."

Mr Torbay said the only reason insurance companies were opposing these laws was because
they cut into their bottom line.

AAP nr/rj/de

KEYWORD: NRMA

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