Wednesday, 13 November 2013 23:51

IABA Spearheads Petition to Stop Insurer Tortious Interference

The Indiana Auto Body Association (IABA) was founded at the beginning of 2004 by a group of forward-thinking shop owners and vendors with the mission of promoting "professionalism and consumer awareness of the automotive collision repair industry in the state of Indiana." Near the end of 2004, IABA's Board of Directors asked Tony Passwater to fill the role of Director for the association because they felt it would be best to engage someone who was not a shop owner or vendor to grow the organization for the future. Passwater notes that, at the association's conception, "it had been almost eight to ten years since the last association had folded, and the timing was right."

IABA was founded on a multi-faceted Code of Ethics. This code dictates that their members conduct all business practices in a lawful and professional manner. They must also recommend only proper collision repair procedures and explain to the customer why these repairs are required to correct the collision damage the vehicle suffered. Other items contained within the code of ethics include: offer the customer a price estimate for the work to be performed, obtain prior authorization for all work, notify the customer when promises cannot be kept, furnish an itemized list for all parts and services, exercise reasonable care of the consumer’s property during the repair, maintain a system to settle customers’ complaints, cooperate with all established consumer complaint mediation activities, maintain a high quality level of repairs, and cooperate in a good business manner with insurer representatives and make a sincere effort to provide affordable service to the motoring public.

According to Passwater, IABA's short-term goals include growing IABA to the largest state association in the midwest and providing tangible benefits to members, as well as informing consumers that they have the right to choose the collision repair facility that works on their vehicle and educating them on how to choose wisely. These goals contribute to the association's long-term objectives of protecting consumers from steering and improper repairs and of providing a resource that improves the professionalism and unity of the collision repair industry as a whole.

Some of IABA's current projects focus on attaining these goals. In addition to trying to maintain and improve data privacy, they are also struggling to eliminate double taxation on some paints and materials. Additionally, IABA supports members pursuing short-pay lawsuits as they try to establish standards for collecting funds on operations performed that insurers refuse to compensate shops for completing.

Passwater notes that IABA is also involved in "stopping insurer-mandated programs that interfere in the industry's business," such as PartsTrader which he sees as "tortious interference that only benefits the insurers to fuel their greed... it is extortion and tactics used by the Mafia."

In mid-September, IABA hosted six meetings across the state, which were attended by over 325 shop owners, managers and industry vendors, to discuss issues related to insurer-mandated programs, such as PartsTrader and American Family’s APU Solutions. Attendees were fearful of what insurers are doing to the industry, and many felt hopeless about doing anything to circumvent these programs. Panel discussions served to inform participants of the options available for stopping these programs as well as to educated them on the actions being taken on local, state and federal levels to eliminate insurer interference in the collision repair industry. The panel consisted of Lloyd Bush of Bush Collision in AL, Marvin Windham of Benchmark Chrysler in Birmingham AL, Steve Plier of C.A.R.E. in Hoover AL, and John Mosley of Clinton Body Shop in Clinton MS. A webcast of the panel discussion can be viewed at www.IABAlive.com.

IABA has committed itself to using whatever actions are necessary to prevent this form of extortion, whether the means are legal, legislative and/or related to public awareness. The association has come out in support of SCRS’s position on PartsTrader and similar programs because “the IABA believes, as other associations and leaders have recently stated, that all repair decisions, vendor selections, and business processes should be left to the collision repair professionals who work on these vehicles, and have been entrusted by the vehicle owners to make correct repair decisions regarding their vehicles.”

IABA recognizes that such programs are not designed to improve efficiency or to benefit the consumer; these efforts seek only to increase insurers’ profits and to allow insurers to establish more control over the collision repair industry.

In late October, IABA organized a nationwide petition to stop insurer-mandated parts procurement programs, and they are encouraging their members and other collision repairers across the country to sign it by visiting www.1963ConsentDecree.com. Their email blast, sent on October 24, explained, “To make change happen requires action, but it often begins by the smallest of actions. History has shown that changes begin not by the war to end all wars but by the individual battles that define the injustice and dedication to the need for that change by those willing to accept the challenge.” They plan to use this show of support to regain control of the industry.

In addition to the challenges imposed by these type of programs, Passwater lists several other challenges facing the industry which need to be addressed for the benefit of the collision repair industry as a whole: labor rate suppression, the manipulation of estimating systems and databases, the unequal enforcement of current EPA and OSHA laws, and "improper repairs due to new technology and the inability to purchase the training and equipment needed to repair the vehicle properly."
Though IABA has not taken an official stance on the PARTS Act, Passwater believes "OEMs should be afforded the same protection as any industry for their investment in technology and innovation." Regarding the Right to Repair, Passwater's opinion is that "everyone needs the information equally to repair the vehicles today."

In the beginning of 2013, IABA also implemented a comprehensive consumer-focused member benefit entitled “A Shop You Can Trust.” According to Passwater, “this program is available to IABA members that meet the qualification process. It includes a consumer focused website listing (www.aShopYouCanTrust.com), and three additional optional programs that are designed to eliminate steering and create customer loyalty. It has co-branded materials with the Better Business Bureau available. A webcast about the program is available at www.IABAlive.com.”

Covering the entire state of IN, IABA currently consists of 105 member shops, plus 15 supplier sponsors. IABA has designed numerous benefits to attract members, and according to Passwater, "with our affiliation with SCRS and ASA, they are even greater. Our greatest benefit is our partnership with Associated Insurance Agencies. They have saved our members thousands of dollars yearly."

Still, there are always challenges inherent for any industry association to maintain operations, Passwater admits. "As with any state association, we constantly struggle to match time focus on dollars available. Even though we have tangible benefits that outweigh our members' yearly dues, we still have only 10% to 12% of the shops members and much less for industry-related vendors and suppliers."

IABA
PO Box 532364
Indianapolis, IN 46253
(317)290-0611 x201
www.iaba.info

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