Ontario Moves Toward Shop Standardization

--By Chris Mc Loone September 1998

HAMILTON, Ontario­Self-management and accreditation programs, which work to establish standards by which other businesses should operate, are nothing new to Ontario. Already, several business sectors have their own programs in place. Now, the Collision Industry Steering Committee of Ontario (CISCO) has proposed creating a similar program for the collision repair sector--and the program has strong backing.

According to John Norris, a member of CISCO's steering committee, "The minister of insurance indicated that he was prepared, should we come to him with a package of accreditation standards and self-management, to amend the insurance act in this province so that insurers can only pay accredited facilities. So facilities that meet compliance standards and meet equipment standards according to CISCO requirements will be able to be paid for their work."

Rules and Regulations for Accreditation

CISCO's program seeks to establish a system that accredits repair facilities and repairers according to standards developed by CISCO. The proposal includes a code of ethics to govern business practices and a list of criteria to which all accredited shops would have to adhere. An administrative authority would be responsible for setting accreditation standards, inspections and enforcement, a consumer and industry complaints process, education and training, and other matters.

The possibility of shops being put out of business is clear, but Norris contends that the program is not designed to close shops. "This is not designed, nor can it be designed, to force shops out of business. It has to be competitive in the marketplace," he says. "It will, however, obligate shops to reach a minimum standard. If shops feel that they do not want to do that, yes, they're going to have to make a serious decision about their future."

Shop Participation

Norris contends that shop response has been largely favorable; however, there are shops on both sides that feel differently about earning accreditation or losing business. One shop owner states, "Big body shops are crying and rooting for standards to eliminate the little guys. It is good for the industry, but not for small business. The big names survive."

Larry Kelley of Kelly's Auto Body, Ltd., Ontario, is positive about accreditation. "I think it's good for everyone who is running a legitimate business," he says. "If you're not running a legitimate business, this may force you become legitimate or possibly think of another business to get into."

CISCO has worked hard to make sure that this program is not perceived as excessive government control. Through workshops, town hall meetings, documentation, mailings and the trade media, the organization will distribute information to every shop. The town hall meetings were to be held across the province to explain what self-management and shop accreditation is. But, Norris contends that "to gain more support from shops, to answer questions and to refine [the program] if we need to, we need feedback from the grass roots industry." After meeting with the shop owners, CISCO will prepare a final copy of the standards and then send out applications for accreditation in October. Payment by insurers is expected to start in July 1999.

The Bottom Line

According to CISCO, "Accreditation and self-management will allow the collision repair industry to focus its resources and expertise on regulating and supporting the industry to create a fair and level playing field for the industry and consumers. The industry will have the opportunity to take the lead in setting standards for marketplace conduct, as well as developing education and training programs. Industry accreditation and self-management present a win-win opportunity for industry, government and the public."

Toronto Metro Passes Anti-Chasing Bylaw

Insurers Prohibited from Recommending Repairers

December 1997

Despite a fist fight between a tow operator and security staff during the debate and shouted insults from the public seating area, the Metro Toronto Council approved a bylaw December 10, 1997 that mandates major changes for the towing and collision repair industry. The bylaw, some two years in the making, will have a major impact on how motor vehicle accidents are handled in the Toronto area.

There are 105,000 collision damaged vehicles, 126,000 comprehensive claims and a half billion dollars in repair work each year in the Toronto area, almost 45% of all accidents in the province. Major features of the by-law: ALL collision damaged vehicles must be towed to the closest Collision Reporting Centre. (Collision Reporting Centres are operated privately through an agreement with the Police Services Board. Motorists report their accidents to police who are situated in a portion of the building and then can file a claim with their insurer, who pay for the Centres, in another area of the building. In this fashion, police can have the accident come to them, rather than responding to each incident.) Tow truck price rates for the tow are “capped” at $130 for city roads and $150 for highways. Collision damaged cars must be dropped off at the Collision Reporting Centre, the tow operator is paid for the tow and the tow truck leaves the premises. This is called the “mandatory drop” and commences on June 10, 1998.

Motorists will report the accident to police at the Collision Reporting Centre and can file a claim with their insurer, who is also represented at the Centre. Motorists are required to be supplied a listing of “industry accredited” collision repair and auto refinish shops that meet or exceed industry standards and legal compliance requirements. Insurers operating within the Collision Reporting Centre cannot recommend a repair facility to the motorist. This prohibition is effective June 10, 1998.

According to Tony DiSanto, President of the Toronto Collision Repair Society, “By providing a level playing field for repairers and freedom of choice for motorists to decide on their own repairer, the level of professionalism and workmanship provided to motorists will improve and aggressive tow truck solicitation will end.” By eliminating both excessive towing charges and the abuse generated by “chase” shops who often charge hundreds of dollars simply to return the still damaged car to the motorist, savings for consumers and insurers are estimated to be over eight million dollars annually.

Also, the Metro Council’s approval of an industry accreditation program will allow the collision repair and auto refinish industry to improve the credibility of the industry through an inspection program. Under the program, each facility that is identified in the listing supplied to motorists at the Collision Reporting Centre, will be required to meet or exceed standards for municipal licensing, trades certification of staff and environmental compliance.

John Norris of the multiple trade association sponsored Collision Industry Action Group, who have developed the accreditation and implementation plan, believes that the new consumer arbitration and quality assurance portions of the plan will give the plan the “teeth” to force errant shops to clearly satisfy the motorist. According to Norris, “The accreditation plan has gone through a long stakeholder and public comment period, with meetings held across the province and continues to be popular with government. Virtually all collision repair trade associations in the province, major envirorunental groups, some regional governments and the insurance community support an accreditation program.”

Over the next sixty days, the accreditation program is expected to be formally adopted and industry information meetings announced. The industry accreditation program is based on: -meeting municipal licensing standards -employing trades certified technicians -meeting or exceeding minimum environmental compliance requirements -possessing the necessary minimum level of equipment to perform the vehicle repair

For further information on these developments, contact the Toronto Collision Repair Society at ----------(416) 636-0901, or the Collision Industry Action Group, representing collision repair trade associations in Ontario at 1-800-318-DENT