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Pushing For Common Standards for Collision Repair Shops
By Dominic Mesiano Here's a scenario few of us want to think about.
You've had an accident. In a perfect world you would have your vehicle towed to the original dealership and have its repair shop do the work. After all, you can be assured it's licensed, has the proper equipment, trained staff, properly disposes of hazardous wastes and so on.
But instead, you're miles away from the dealership, seemingly in the middle of nowhere, and are being unceremoniously towed to the nearest auto body shop. You're not familiar with the area or the people who run the shop.
You're uneasy and dozens of questions flash through your mind. How much extra is this going to cost me? Is this shop dependable? Do they guarantee their work? Do they have the right equipment and parts? How well are the body repair technicians trained? Will the repairs be safe?
Here are the hard facts. There are 2,800 collision repair shops in Ontario. And while dealership collision repair shops do adhere to the strictest of standards, there are really no consistent or enforced standards out there.
Things like customer codes of practice (i.e. consumer protection), equipment, training of staff, quality of the repair, conforming to labour and environmental laws and so on, are left to the interpretation of the owner/operator.
This is bad for the consumer and bad for our industry.
So, for the past several years, Toronto and Ontario Automobile Dealers have been working with government, consumers and various other key organizations on the best ways for the collision repair industry to manage itself. The result?
New bill, new standards
On June 27, 2002, MPP Frank Klees (PC) introduced a new bill in the Ontario Legislature designed to bring much-needed standards to the auto body industry. It's called the Collision Repair Standards Act, 2002.
"The new legislation is a positive step and will mean better protection for all consumers when it comes to safety and repairs after an accident," says John Norris, Executive Director of the Collision Industry Action Group (CIAG), the largest collision repair and auto refinish trade association in Canada.
"There'll be fewer consumer complaints because all shops will adhere to strict standards and established codes of practice. For example, each will have to possess and maintain the proper equipment to perform a specific repair. Shops must employ licensed staff and must conform to strict environmental protection standards."
Norris is quick to point out that the legislation was not conceived in a vacuum. "It's the result of four to five years of ongoing efforts about industry management between government, consumers, the Ontario & Toronto Auto Dealers Association, the Collision Industry Standards Council of Ontario (CISCO), the Collision Industry Action Group (CIAG) and various other collision repair associations," he says.
No standards, no reimbursement The real "teeth" to the act involves the often maligned insurance industry. Klees also introduced a complementary change to the existing Insurance Act that will force car insurers in Ontario to reimburse shops for accident repairs only if they fully comply to all the standards that will be established (66% of all collision repair in Ontario involves insurance claims).
A very important reason why auto dealers endorsed and supported this legislation is SAFETY. Your vehicle must be repaired properly. There is no room for compromise - it must be brought back to its pre-accident condition, or no payment will be issued. Faulty repairs can render your vehicle a safety hazard for you as well as for others on the road.
How will the act be implemented?
An Advisory Board will set the standards for all collision repair and auto body shops in Ontario. This process is not really new - Manitoba, Saskatchewan and British Columbia currently operate in this manner and consumers there are reaping the benefits.
The TADA and OADA members fully support this legislation and realize the enormous benefits to you, the consumer, and to our industry as a whole.
(see headlines) |
Letter to the Editor of Collision Repair magazine
MORE
ON ACCREDITATION EFFORTS
In
the May 2006 issue you published a letter from Wendy
Hillier of Aviva Canada regarding an article I had written
on accreditation. Part of her letter reads, "The
repair industry has been struggling on the issue
of standards and accreditation for years."
I must respectfully disagree. The collision industry has not
been struggling on this issue. 14 associations from across Ontario developed
a comprehensive proposal to the Ontario government on self-management of the
industry that included standards for mandatory accreditation.
These standards and rules had buy-in from shops across Ontario
through numerous fax outs for feedback, and 25 workshops, with unanimous support
from shops. We also worked closely with and had buy-in from the insurance industry.
The majority of shops that do not want to see mandatory accreditation
are illicit shops who do not operate by any rules. It is also possible some repair
facilities feel they already meet a higher standard and do not want to see the
rest of the industry rise to that level, but this type of selfish and parochial
thinking is very much in the minority.
We have been lobbying the provincial government since we presented
our proposal in 2002. This may seem like a long time but all the other sectors
who self-manage spent many more years achieving that goal. Other sectors had
a licensing regime in place making self-management much easier.
As the next step we may have to consider going that route.
Self-management of a sector is not a priority for government.We have to show
the need to protect the public from illicit shops who perform unsafe repairs
and do not operate by the rules.
CISCO is currently continuing the lobbying process. Just recently
we met with Rob Dowler the Assistant Deputy Minister of Business Services. In
order to show their support, representatives from CAA, The Ontario Chamber of
Commerce, OMVIC, Consumer Council of Canada, and the Ontario Dealers Association
also attended this meeting.
I would like to assure your readers that CISCO will continue
fighting on behalf of the collision repair industry towards the goal of self-management.
Regrettably some insurers find mandatory accreditation of the industry is not
in their best interest.
Alex Szabo
Owner, Dundas Valley Collision Centre
President, Collision Industry Standards
Council of Ontario (CISCO)
(see headlines) |
COLLISION
REPAIR INDUSTRY SELF-MANAGEMENT AND MANDATORY
ACCREDITATION GETS MAJOR MEETING SUPPORT
August 7, 2006
In
a major show of support for the collision repair
industry accreditation program, senior Ontario government
staff met with CISCO supporters to offer suggestions
on next steps.
CISCO,
The Collision Industry Standards Council of Ontario
Inc., is the group representing the collision repair,
autobody and auto refinish industry in Ontario, in
moving forward with an accreditation program of facilities
to assist consumers.
A
number of senior staff from the Ministry of Government
Services, Consumer Protection Branch, including Assistant
Deputy Minister Rob Dowler, met with a room full
of CISCO supporters who came with answers to previous
government questions on the program.
CISCO's
efforts are based on requesting the government to
move ahead and proclaim the already passed, Collision
Repair Standards Act of 2002, that would set the
stage for industry accreditation.
Mr.
Dowler congratulated CISCO on the wide range of support
that they had obtained and offered recommendations
on what the staff needed next in order to implement
a self-managed program.
Alex
Szabo, President of CISCO, thanked the many supporters
for their strong effort in continuing to help CISCO.
At the meeting offering their encouragement to the
government were representatives from:
Ontario
Automobile Dealers Association and Toronto association
Consumers Council of Canada
Canadian Automobile Association
Ontario Chamber of Commerce
Hamilton district Autobody Repair Association and www.ciia.com
Included
in a package presented to the Ministry were letters
of support from:
Ontario
Motor Vehicle Industry Council
Canadian Collision Industry Forum
Insurance Bureau of Canada
"This
wide-range of support will help the industry identify
to government how important it is to move forward
with mandatory shop accreditation and self-management
to provide a level-playing field for industry and
better consumer protection. Government is certainly
eager to look at underground operations and abuse
issues." said Mr. Szabo.
For
more information on CISCO , please see: http://www.ciia.com/provinces/ontario/cisco.html
(see
headlines) |
Support
for the Ontario collision repair sector self
management initative
Dear
Alex Szabo:
In
my role as Chairman of the Canadian Collision Industry
Forum, I am pleased to provide you my support and
that of many of the key stakeholders that participate
in our forum.
We
know and understand the value of becoming a self-managed
business sector. Taking control of the future of
our industry is important for Ontario consumers and
industry stakeholders as well as for key stakeholders
in the rest of Canada.
We
know that model works well. There is clear evidence
that given the opportunity to establish a self managed
program in Ontario, all benefit. Industry assumes
the costs of implementation and managing it, while
the Ontario consumer benefits.
If
there is any further assistance I can provide you,
please do not hesitate to contact me.
Best
regards
Larry
Jefferies
Chairman,
Canadian Collision Industry Forum
(see
headlines) |
|
OMVIC
letter supports collision repair self-management
I
am pleased to add my name in support of your initiative
to have the collision repair sector become a self-managed
business sector.
Each of Ontario's self-managed sectors - real estate, travel, motor vehicle
sales - have dramatically improved the level of consumer protection and
business professionalism. In all cases these improvements have not cost
the taxpayer a dime! The costs have been borne by the sector itself.
I would say that even if a sector requires initial funding in order to
get started down the road to self-management, it's an investment that
bears significant positive return.
It's a formula that works well, and this has been documented and supported
by an independent consultant study report of a few years ago. Everyone
wins when a business sector assumes responsibility for its own compliance
with law: consumers, business participants, government and taxpayers.
I wish you well and if I may be of assistance in any way, please don't
hesitate to call on me.
Carl Compton
Executive Director
Ontario Motor Vehicle Industry Council
(see
headlines) |
Ontario's
long road
In
government, change takes time
By
Alex Szabo
Mandatory
standards and related issues such as accreditation
are on the minds of many industry stakeholders. As
part of our ongoing coverage of this vital topic,
we have asked Alex Szabo, Owner/Operator of Dundas
Valley Collision Centre and President of the Collision
Industry Standards Council of Ontario (CISCO) to
provide us with an update on the situation as he
sees it in Ontario.
Collision
Repair magazine welcomes submissions on this topic
from all members of industry, in every area of the
country. Submissions should be sent to Mike Davey
via e-mail at editor@collisionrepairmag.com.
Industry
self-managed accreditation in Ontario looked feasible.
During the NDP's term as the government of Ontario,
MPP Brian Charlton was ready to proceed with a bill
reflecting an industry-submitted environmental compliance
proposal, that would see environmental regulations
and permitting handled by industry. When the NDP
did not get re-elected, we were back to looking for
a new champion for our cause.
Advocacy
We continued working with the bureaucrats and advocating our position
with government, when in 1998 the Hon. Rob Sampson, Conservative
Minister responsible for insurance, and the Hon. Frank Klees came
forward to help our industry towards self-management.Fourteen associations
across Ontario sent their first representatives and CISCO was created.
For the next three years the CISCO Board worked with the Ministry
of Finance, insurers, consumer
groups and others in developing a mandatory accreditation and self-management
proposal. We consulted the collision repair industry across Ontario through
25 town hall meetings and received overwhelming support for our proposal.
Change
With this proposal completed in 2002, it was used as the basis for a
private-members Bill (Bill 186- the Collision Repair Standards Act)
and passed unanimously through the house at Queens Park, on December
12, 2002 Good things and change takes time with government. The Conservative
Minister of Consumer Business Services, the Hon. Tim Hudak, was unwilling
to proclaim Bill 186 into law, believing that the Bill had internal
flaws and unknown
costs to government, and having a full political agenda at the same time,
government bureaucrats were not eager to work on the Bill. Another election
brought the Liberals to power and working to proclaim the Bill was CISCO's
agenda once again. MPP Ted McMeeken was appointed as Parliamentary Assistant
to the Minister of Consumer Business Services. After a number of meetings
with Ted it was clear he has a genuine interest and concern for fairness
and consumer protection. "I applaud the work of
CISCO on behalf of the Auto Body Repair Industry," says Ted.
The
right thing
Ted seems to understand that there are millions of dollars the government
is not receiving in taxes and contributions from the underground economy,
that there are environmental abuses taking place, and that the "backyard" shops
that don't have needed equipment, trades-licensed staff, or for that
matter ethical business practices are taking business from shops that
do the right things. How can good shops compete with those who are not
on a level playing field, and do not repair vehicles properly or according
to the estimate? With MPP McMeekin's help CISCO met with senior bureaucrats
from his Ministry to examine perceived problems that prevented the Bill
from moving forward. The meeting showed us that we must convince government
to either amend or develop a new Bill. Since we don't have expertise
in this area, we hired The Pathway Group consulting firm to help us in
certain areas. We have support and continue meeting with the insurance
industry, consumer
groups, suppliers and manufacturers to stand with us and ask the government
to move forward.
Difficult
times
I believe the timing is right to adopt our proposal. We have a comprehensive
package developed by the industry that reflects our vision for the future,
with overwhelming support from our industry partners. With ongoing meetings
with government we believe our package will move forward. With sales
in decline, now is an especially difficult time in our industry. We have
to ensure that the legitimate operators who invest in their honest businesses
can continue to survive and indeed, prosper.
Thanks
to Collision Repair Magazine
(see
headlines) |
|
CISCO
PROVIDES UPDATE FOR ONTARIO SHOPS
May
31, 2005
An
update to the Ontario collision repair industry from
the Collision Industry Standards Council of Ontario
(CISCO) representing collision repair facilities
in this province.
In
1999, representative of all local collision repair
trade associations in Ontario, formally incorporated
the non-profit Collision Industry Standards Council
of Ontario (CISCO), to represent the auto body, collision
repair and auto refinish industry. CISCO had one
goal - the establishment of legislated self-managed
shop accreditation program. The vision of an industry-managed
provincial-wide voice of professional, competent
and caring collision repairers operating on a level-playing
field of fairness was the motivator.
The
goal was the passage of legislation at Queen's Park
to put into form a Bill that would ensure self-management
and a series of mandatory shop standards for equipment,
legal compliance and customer service that were fair
and reasonable, protected the public and encouraged
good and honest operations in the industry.
Twenty-five
stakeholder meetings were conducted, insurer and
government organizations consulted and in December
2002, the legislature approved a private members'
Bill introduced by Conservative MPP'S Frank Klees
and Rob Sampson - Bill 186, the Collision Repair
Standards Act (2002). Although celebrated by industry,
the Act has never been proclaimed and efforts by
CISCO to encourage government enthusiasm to put the
Bill into force continue to be met with reluctance.
Segments
of the Collision Repair Standards Act have been implemented
in other legislation - provincial controls on "bandit" towing
are in front of Cabinet, disclosure of aftermarket
parts and full identification of repair costs to
consumers takes effect July 30, CISCO standards have
been accepted by other national organizations and
insurance companies and municipal By-Laws have adopted
CISCO's standards as their own. Despite these successes,
we still have not achieved the industry dreams of
a self-managed provincially mandated program.
We
want to move forward with identifying to government
the advantages of the implementation of Bill 186,
and need your help. Consultants, lobbyists, meetings
and efforts to attract other levels of support are
expensive, and we are asking for your contribution
to CISCO, to allow us to help our industry. We have
to gain control and direction over our industry.
We have invested our lives and our children's future
into our shops, only to watch the backyard, illegitimate
shops take our business away. How can we compete
with shops that do not pay taxes, and perform improper
repairs? Others have controlled and made decisions
that have not always been in our best interests and
we have to stand together as an industry so that
we can control the direction of our businesses. In
1999 you chose twelve individuals through your local
associations, listed below, who have unselfishly
spent many hours over the last six years away from
their businesses to help all of us. Unfortunately,
it takes money to take action, and while most of
us have everything invested our businesses, considering
the size of our current investments, a donation to
CISCO is the best investment we can ever make for
the future.
Please
help us with your contribution of $100.00, $150.00
or $200.00 or more. Cheques made payable to CISCO
can be forwarded to 34 Plaza Drive, P.O. Box 63051
Dundas, Ontario L9H 6Y3.
Information
on CISCO can be found at www.ciia.com/provinces/ontario/cisco.html.
Thank
you,
On Behalf of the Board of Directors,
Tony Canade, Wes Killins, Randy Sundell, Bill Davis, John Norris, Don
Teevens
Brian Good, John Reiner, Mike Wilson, Walter Grego, Doug Rothwell
Alex
Szabo
CISCO President
905-627-5458
(see
headlines) |
| 1. What
is the Collision Industry Standards Council of
Ontario (CISCO), accreditation and self-management?
For
a number of years the collision repair industry
have talked about the need for greater regulation
to:
(1) Improve marketplace standards
(2) Ensure safe and quality repairs
(3) Create a fair and level playing field through compliance to uniform
standards for the industry and consumers
(4) Enhance consumer confidence and protection
(5) Ensure that all repair facilities comply with the laws that regulate
the industry
As
a result of the efforts of many industry representatives,
government and insurance industry support for a
collision industry accreditation and self-management
program has been received.
The
Collision Industry Standards Council (CISCO) comprises
of representatives from industry trade associations
representing repair shop owners across Ontario,
as well as representatives from government and
the insurance industry that have worked to develop
industry accreditation standards and code of ethics.
CISCO is a non-profit corporation that will run
the accreditation and self-management program.
2. Does
the government support the work of CISCO?
YES.
The government has indicated it will pass legislation
to require all collision repair facilities to be
accredited and delegate management of the program
to CISCO.
3. Does
the Insurance Industry support CISCO?
YES.
The Insurance Bureau of Canada supports accreditation,
and has provided representatives and financial
support to the development of CISCO.
I.B.C. representatives will be part of the CISCO Board.
4.
Is CISCO a Trade Association?
NO.
The Collision Industry Standards Council of Ontario
is an Administrative Authority consisting of representatives
from known active trade associations across the
province. It has been established to accredit collision
repair facilities.
The
establishment of a provincial trade association
is planned. It will be known as the Collision Operators
of Ontario (COO).
5.
Do I have to belong to a Trade Association
to become a member of CISCO?
NO.
The Collision Industry Standards Council of Ontario
accreditation program is for all collision repair
facilities in Ontario. A CISCO member can choose
to be a member of a trade association in their
area, but this will have no bearing on the accreditation
of their collision repair facility.
6.
How were the standards developed?
The
CISCO committee reviewed existing standards and
models from Canada and the U.S.A. The committee
reviewed these standards with their association
members.
A
draft of the standards adapted by the committee
was sent out to over 3,000 industry members for
review. Town Hall meetings were conducted across
the province.
The
CISCO committee did not create new regulations.
The accreditation standards reflect existing laws
and regulation. The equipment standards were accepted
by a vast majority of those who participated in
the consultation process as the minimum requirements
to complete safe and quality repairs.
7.
How much will the CISCO program cost?
The
annual accreditation fee will be as follows:
By
employees incl. Contract workers Fee
1-3 $300
4-9 $600
10-20 (over) $900
The
annual fee will be used for the list below:
(1)
Validating criteria for facility accreditation
(including inspections)
(2) On-going administration of the CISCO program which includes:
---(a) Assisting shops to meet accreditation
criteria
---(b) Inspections & Enforcement
programs to ensure on-going compliance
---(c) Dispute resolution
---(d) Communications to the
industry
---(e) Industry education
and training
---(f) Consumer education
---(g) Compensation Fun
8.
What is the accreditation and why must it be
mandatory?
Accreditation
is the process of ensuring that collision repair
facilities have the equipment and personnel necessary
to make safe and quality collision repairs. It
is also an ongoing process to ensure that collision
repair facilities comply with the standards, code
of ethics, and Consumer Bill of Rights.
It
must be mandatory to ensure that all facilities
play by the same rules and to ensure that there
is a uniform level of consumer protection across
Ontario.
9.
What if I am accredited by another Accreditation
Program, or have a municipal license?
If
you are accredited or licensed by a municipality
you still must be accredited by CISCO to comply
with the new Collision Repair Act.
To
become accredited by CISCO you must still apply
to the CISCO program (and pay the application fee),
and you must meet all criteria related to application
processing and site inspections.
10.
What if I can't comply with the CISCO Accreditation
Standards?
The
CISCO committee did not create new regulations.
The accreditation standards reflect existing laws
and regulations. The equipment standards were accepted
by a vast majority of those who participated in
the consultation process as the minimum requirements
to complete safe and quality repairs.
It
is an objective of the Collision Industry Standards
Council of Ontario to assist industry members in
meeting accreditation criteria. As the CISCO administration
validates criteria for accreditation, it will advise
facility owners how to become compliant to the
standards.
11.
What happens if I refuse to apply or operate
without a license?
To
operate an auto collision, auto body, auto body
and refinishing or auto refinishing facilities
in Ontario the repair facility must be accredited
by CISCO. Shops that refuse to apply or attempt
to operate without a license from CISCO may be
fined and the owners may be fined and/or imprisoned.
12.
How will CISCO enforce compliance?
CISCO
will use the initial application forms and a series
of inspections to ensure initial compliance.
CISCO
will then undertake a series of random inspections
to ensure continued compliance and quality of repairs.
CISCO will also respond to complaints from consumers
and from within the industry.
13.
How will CISCO deal with unethical operations
of facilities that don't comply with program?
The
new Collision Repair Act will require all facilities
to be accredited and comply with the program. The
Act will provide that every facility owner or officer
who operates without an accreditation license is
guilty of an office and, on conviction, is liable
to a fine of $25,000.00 if a person, or up to $100,000.00
if a corporation, or imprisonment for up to one
year, or both.
14.
How will CISCO discipline a shop that fails to
comply?
A
formal complaints and discipline process will be
established. CISCO will investigate complaints
or matters of non-compliance. If a facility is
found not to comply it will be required to comply
and be subject to penalties and possible license
suspensions for varying periods of time.
15.
Can shops appeal if CISCO decides to not accredit
them?
YES.
Shops can appeal to the Commercial Registration
Appeals Tribunal.
16.
Why is accreditation good for consumers?
It
will ensure that all collision repair facilities
provide safe and quality repairs.
It
will ensure that all facilities comply with fair
business practices and a Consumer Bill of Rights
that provide uniform warranties. Consumers will
be protected from fly-by-night operations. Consumers'
right to choose a collision repair facility will
be protected.
17.
Do consumers get new rights?
YES.
Under the new code of Ethics and Consumers' Bill
of rights, consumers will get new rights to safe,
quality repairs that will be protected by warranties.
Consumers
will get new rights to complain about collision
repair facility work and business practices.
18.
What are consumer rights if they disagree with
the quality of repair work done?
First,
they should attempt to resolve the matter with
the facility, involving their insurance agent or
broker. If this fails, CISCO will attempt to mediate
a satisfactory resolution.
If
a mediated resolution cannot be obtained, the consumer
can lay a complaint and, where appropriate, CISCO
can order restitution.
19.
When will restitution be ordered?
Where
CISCO determines that safe and quality repairs
have not been made at the usually accepted industry
level, it will order remedial work or restitution
as appropriate in the individual circumstance.
20.
Will OEM parts be required for use in all vehicle
repairs?
Collision
repair shops will use the parts that have been
specified by the consumer or their insurance policy.
21.
Will accreditation increase auto premiums?
Accreditation
should not increase auto premiums. Accreditation
may provide for a reduction in premiums as the
safety and quality of repairs increase.
The
accreditation program may also reduce the need
for individual insurance companies "re-inspection
programs".
22.
Will accreditation put small repair shops out
of business?
Accreditation
will not put any repair shops out of business that
meet the minimum requirements for collision repair
equipment and personnel that are necessary to complete
safe and quality repairs.
CISCO
has not created any new laws. It will simply require
all facilities to comply with existing provincial
legislation and the CISCO Consumer Bill of Rights.
The
CISCO program will come into effect in two steps.
During Phase 1, facilities will be inspected and
will be notified of any items that are required
to become accredited. There will be a period of
perhaps up to six months for facilities to become
compliant before Phase 2 enforcement comes into
effect.
23.
Why does a small shop have to meet the same standards
as a large facility?
Small
shops have to meet the minimum equipment and other
standards that are necessary to provide safe and
quality repairs. Shops without this equipment put
consumers at risk
24.
When will facilities need more than one license?
Facilities
will need a CISCO accreditation license and will
have to comply with other applicable laws like
a business registration number, sales tax, GST,
etc.
Facilities
will also require a municipal business license
where required. However, municipal accreditation
programs will no longer be required when the CISCO
program is operational.
25.
How will CISCO help facilities to meet the standards?
CISCO
inspectors will advise facilities about any compliance
issues and offer assistance to shop owners to meet
the standards by advising them of industry accepted
equipment and standards as appropriate.
26.
How will accident scene solicitation be stopped?
CISCO
will investigate complaints from consumers and
the industry, and levy fines and other penalties
as necessary.
27.
Will accreditation put an end to preferred shops?
The
CISCO program cannot put an end to preferred shops.
The Competition Bureau has ruled that directing
consumers to preferred auto body repair shops has
not substantially lessened competition.
However,
the CISCO program will ensure that all repairs
are safe and of high quality.
CISCO
will also ensure that consumers are aware of their
right to choose any accredited facility and will
work with the insurance industry to ensure this
right is protected.
28.
Who administers the CISCO program?
The
Collision Industry Standards Council of Ontario
Board of Directors has been established. The trade
associations on the steering committee elected
the initial board members.
This
administrative authority will be responsible for
setting accreditation standards; inspections and
enforcement; a consumer and industry complaint
process; education and training and other industry
related matters.
29.
When will accreditation be introduced?
The
collision repair industry hopes that the Collision
Repair Act will be passed early in the year 2000
and that the program will be fully operational
by the fall of 2000.
30.
How can shops provide input to shape the program?
The
CISCO program is being developed by representatives
of local Collision Repair Associations from across
Ontario.
A
series of Town Hall meetings have already been
held.
31.
How do I get accredited and how will the Accreditation
Standards and Code of Ethics be enforced?
The
first step is the confirmation of:
(1)
Business Identification
(2) Employee Identification
(3) Compliance with existing Federal, Provincial and Local regulations
(4) Compliance to collision repair and auto refinishing equipment standards
This
is done through the application process.
The
next step requires and agent of CISCO to inspect
the facility to validate compliance to the 'accreditation
standards'
The
facility must meet compliance criteria at both
stages before it can become accredited. To ensure
on-going compliance, CISCO will, periodically re-inspect "Accredited" facilities
to ensure they are still compliant to 'accreditation
standards and code of ethics'. CISCO may also revisit
a facility as part of the complaint mediation process.
On
an annual basis, facilities will be required to
submit a renewal application to reaffirm compliance
information.
(back
to top)
|
|
Summary
of the Proposal to Regulate Ontario's
Collision Repair Industry
The
Proposal
This document sets out a proposal to regulate the collision repair industry.
The main features of the proposal include:
1.
Enactment of the collision repair act which would
require all collision repair facilities to be accredited
and comply with uniform accreditation standards,
a code of ethics and a consumer bill of rights.
2.
Appointment of the Collision Industry Standards Council
of Ontario, consisting of collision repair facility
owners / managers, and representatives of the insurance
industry, government and consumers, to manage that
act on behalf of the government consistent with other
self-managed industries like travel, motor vehicle
dealers and real estate.
The Case for Regulation
The
collision Repair Industry is a multi-billion dollar
industry consisting of approximately 3000 repair
facilities in Ontario that employ in excess of twenty
thousand workers. It directly affects the lives of
hundreds of thousands of Ontario consumers that are
involved in collisions or otherwise require their
vehicles to be repaired or refinished every year.
The industry also impacts on the safety of all other
motorists and passengers in relation to the safety
and quality of the repairs made to vehicles that
return to the road.
There
is a plethora of legislation and numerous municipal
by-laws that regulate the industry in some way. This
legislation deals with consumer protection, environmental
concerns, labour and apprenticeship, taxation and
hundreds of other issues. However, in spite of its
impact on the economy and public safety, regulation
of the industry is fragmented, uneven and ineffective.
The
current regulatory environment has created a myriad
of problems for consumers, collision repair facilities,
the insurance industry, and government. All recognize
the need to create a new regulatory regime that will
enhance consumer protection and create a fair level
playing field through compliance to uniform standards.
From
the government perspective, a Summary Report prepared
by Mr. Frank Klees, MPP York MacKenzie, in March
1998 for the Honourable Rob Sampson, indicates a
broad consensus for province-wide accreditation of
collision repair shops. The report cites the need
to increase consumer protection and deal with industry
competition issues as reasons to implement province-wide
accreditation. It states the preferred option if
an industry self-managed model, under which the industry
would play a lead role in organization, funding,
and self-compliance.
Several
ministries have also expressed the need for regulation
of the industry to deal with issues relating to protection
of the environment, labour and apprenticeship training,
taxation, occupational health and safety, and transportation.
Some have expressed interest in contracting with
a new industry-driven regulatory agency to carry
our their enforcement programs in a cost-effective
and efficient manner.
From
the Collision Repair Industry perspective, the desire
for accreditation and self-management stems from
the need to ensure that all repair facilities comply
with the laws that regulate the industry and thereby
provide added consumer protection. Several industry-wide
meetings have been held with overwhelming support
for accreditation. In recognition of the need to
regulate the industry consistently and fairly, the
industry created the Collision Industry Standards
Council of Ontario (CISCO), comprising representatives
of 15 Associations covering the province, for the
sole purpose of developing and implementing an accreditation
and self-management program.
From
the Insurance Industry's perspective, the Insurance
Bureau of Canada has expressed its support of an
accreditation program. The IBC has been a party to
the ongoing discussions since the beginning. In March
1999, it joined with CISCO at the request of the
Honourable Rob Sampson to finalize a proposal to
provide a high level of consumer protection. The
proposal that has been developed will improve the
quality and consistency of repair and benefit both
insurers and consumers.
Finally,
from the consumers' perspective, there are two issues.
First, there are numerous reports, letters to the
editor, letters to MPPs and media reports about the
need to improve the collision repair industry. Secondly,
various concerns have been expressed about the quality
of repair and safety of improperly repaired vehicles
that put other drivers and passengers at risk.
The
Collision Industry Steering Committee was formed
in May 1998 and was incorporated as the Collision
Industry Standards Council of Ontario (CISCO) in
February 1999. It has developed this self-managed
accreditation program to achieve a fair, safe, and
informed marketplace, which supports a competitive
economy. CISCO has consulted extensively with the
Insurance Bureau of Canada, The Canadian Automobile
Association, several ministries, consumer groups
and the collision industry at large.
The
15 associations comprising CISCO, representing a
significant portion of the industry, believe that
mandatory accreditation under a provincial act (e.g.,
a new Collision Repair Act) is essential. Other options
such as a voluntary industry program or regulations
under The Insurance Act have been considered, but
none will achieve the 100% compliance to uniform
standards, increase consumer protection and build
confidence in the industry to ensure the success
of this program.
Only
a mandatory program will ensure that consumers from
Parry Sound to Peterborough, North Bay to Newmarket,
and all across the province, will have the same level
of consumer protection and that collision repair
shops play by the same rules.
The
Current Environment
Although
there is a mountain of legislation that pertains
to the Collision Repair Industry in Ontario it is
relatively unregulated. While the Motor Vehicle Repair
Act, environmental protection, trades and apprenticeship,
taxation, and other legislation and regulations apply
to the collision repair operations, there is little
inspection or enforcement carried out in the absence
of a provincial accreditation and licensing system.
It
is estimated there are approximately 3,000 collision
repair facilities in Ontario. However, few municipalities
have by-laws regulating their business practices
and there is little or no enforcement. For example,
there are approximately 1,500 collision repair facilities
in the various municipalities across the Greater
Toronto Area, of which less than half are properly
municipally licensed.
There
are approximately 20,000 persons employed in the
collision repair industry. Many of these employees
are required to be licensed trades persons. But they
are not.
Most
Facilities (64%) are small, doing less then $500,000
in sales volume. Twenty-eight percent (28%) do between
$500,000 and $1.5 million, and eight percent (8%)
do more then $1.5 million. Ensuring that all tax,
employee health, WSIB, and other obligations are
remitted on a sonsistent basis is a challenge.
Marketplace
Problems
The
collision repair industry comprises:
Full
collision repair and refinishing facilities
Auto Body and refinishing facilities only
Collision repair only facilities
Auto Body only facilities
Refinishing only facilities
Glass facilities
Facilities that do mechanical repairs on a sub-contract basis
The
major problems in the marketplace relate to:
1.
Substandard or unsafe repairs due to lack or regulation
and inspection, and pressure to cut costs
2. Unfair competition between ethical repair facilities and unlicenced,
unregulated "back street" shops
3. Non-compliance with, and enforcement of, existing provincial environmental,
labour, and other legislation
4. Lack of uniformity in licensing requirements across the province from
municipality to municipality
5. Lack of a Consumer Bill or Rights for repair that provide for safe
and quality repairs
Unsafe
Repairs
The
absence of business standards, inspection, and enforcement
creates situations where consumers may receive substandard
repairs, parts and materials or poor workmanship,
which may result in safety problems and erosion of
the value of their assets.
Major
concerns have been documented where substandard work
has been performed and shows up a year or more after
warranty periods expire. For a variety of reasons,
including pressure to cut costs, some repair shops
use inappropriate parts and workmanship that result
in financial losses to consumers and unsafe vehicles
returning to the road.
An
industry self-management program would require accredited
facilities to adhere to strict business standards,
code of ethics, and Consumer Bill of Rights to ensure
consumers receive safe and high quality repairs.
In addition, a workmanship warranty program would
be made mandatory. These measures may reduce the
number of vehicles insurers need to re-inspect.
Further,
to protect consumers from significant financial loss
in the even a collision repair facility goes bankrupt
and cannot complete all necessary remedial work.
Unfair
Competition
Unfair
competition does exist in the collision repair industry.
Ethical
repair facilities comply with the many federal, provincial
and municipal regulations voluntarily. They ensure
that consumers receive safe and quality repairs.
They provide lifetime warranties for they work. They
pay their taxes. They dispose of hazardous waste
products properly and safely. They employ the required
tradespeople and train apprentices. In short, they
play by the rules, and it costs them money to comply,
which is reflected in their repair costs.
But
there are facilities that cut corners. They play
by some rules but not by others. Their repairs are
not always safe or high quality. But they are able
to offer lower prices then their competitors.
This
is unfair to consumers, other collision repair facilities,
and the taxpayer.
An
accreditation program, over time, will eliminate
unethical repair facilities and unlicensed "back
street" shops that use inappropriate materials
and workmanship, and improve protection against poor
quality repairs and service.
Non-Compliance
While
many collision repair facilities do comply with the
many laws and regulations that affect the industry,
many do not.
There are environmental regulations that affect spray booths and emissions.
There are business and taxation laws. There are occupational safety regulations
and a host of other laws and regulations that are not being complied
with or enforced with any uniformity or consistency. This impact the
industry, the consumer, and the general public.
For
example, the lack of resources to effectively monitor
the industry for employing unlicensed auto body technicians
has left the industry in a state where many unqualified
persons are employed. Enrollment in industry apprenticeship
programs has declined over the past 5 years. There
is unfair competition between ethical facilities
and those who employ unlicensed technicians.
Similarly,
the lack of compliance with environmental protection
regulations can harm the environment and put public
safety at risk.
An
accreditation and inspection program would address
this issue and others that will be identified in
discussions with various ministries and agencies.
Lack
of Uniform Municipal By-Laws
There
is no consistency in the requirements at the municipal
level. Some municipalities require licenses and some
do not and even where there are requirements,
enforcement is often minimal or uneven.
There
are approximately 1500 collision repair facilities
in the various municipalities across the GTA, but
only 50% are properly licensed. This creates an unfair
situation for the industry and the consumer. People
in every part of the province are entitled to the
same level or protection. All collision repair shops
should have to comply will the same requirements.
This is why a mandatory province-wid program is the
only option that will ensure uniform public protection.
When
the mandatory accreditation program is in place,
all collision repair shops will be licenced. There
will be a uniform level of consumer protection across
the province. The need for individual municipal programs,
like the program in Toronto, will cease to exist.
Discussions have already taken place on the elimination
of the Toronto program and others in the province
when the provincial program begins.
Consumer
Choice
Many
consumers would prefer to do business with facilities
of their choice because of reputation or personal
knowledge. A CISCO accredited program would create
a standard for business conduct across the province.
The
Strategy
The
collision repair industry proposes an industry led,
financed and managed accreditation and self-management
program (ISM) that is mandated by provincial legislation,
The Collision Repair Act.
The
key elements of the ISM program would include:
Enactment
of provincial legislation (The Collision Repair Act)
Delegation to the Collision Industry Standards Council
Accreditation Standards regulating premises and employees
Code of Ethics regulating business practices
Consumer Bill of Rights
Full inspection program
Full enforcement program
Consumer / Industry Dispute Mediation Service
Complaints and Discipline Process
Consumer Awareness Program
Compensation Fund
Industry Education Program
The
Minister would delegate administration of The Collision
Repair Act to the Collision Industry Standards Council
of Ontario.
CISCO
would become a non-profit Administrative Authority
similar to the Travel Industry Council of Ontario
(TICO) and the Ontario Motor Vehicle Industry Council
of Ontario (OMVIC).
The
CISCO Board would comprise representatives from the
collision repair industry, the insurance industry,
consumers and the government.
The
accreditation program would be mandatory for all
collision repair facilities and uniform in standards
and enforcement province-wide.
Recognizing
that CISCO would be strictly a regulatory agency,
the industry would create a provincial trade association,
to be registered as the Collision Operations of Ontario
(COO), to represent its interests and develop and
deliver education and other programs to support the
industry and assist it to provide high-quality repairs.
CISCO
would continue its' discussion with representatives
fo the Auto Glass Replacement Industry and the Auto
Mechanical Repair Industry to explore various options
to enable these industries to achieve self-management
status with the mandate of CISCO.
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|
CISCO
CODE OF ETHICS
Repair
facilities that hold a valid accreditation certificate
must comply with the code of ethics.
TO
BE ACCREDITED, A FACILITY MUST AGREE TO:
1.
Perform high quality repairs at a fair price: quality
is defined to equal the Collision Industry Standards
Council of Ontario (CISCO) "measurement standard",
the vehicle will measure to a tolerance of no more
than plus/minus three millimetres of industry published
specifications, in length, width and height at all
master control point upon completion of repairs,
or within the standard of variance established by
the original equipment manufacturer if that standard
is greater than three millimetres.
2. Recommend and provide proper collision repair procedures that will
restore the customer's vehicle to a safe condition.
3. Offer to explain to the customer why specific procedures are required
to correct the collision damage
4. Offer damage reports or estimates for the work that is to be performed.
5. On completion of work or repairs provide the customer with an itemized
invoice of parts and services which clearly identifies any new, used,
repaired, remanufactured, or aftermarket parts.
6. Obtain prior authorization for all work done in writing or by other
reasonable means.
7. Maintain technician training that enables a high level of collision
repair competency.
8. Maintain equipment that enables a high level of collision repair quality.
9. Use legitimate equipment, parts and materials of high quality.
10. Post copies of any warranties covering parts or services.
11. Advise the customer with information on preventative maintenance.
12. Exercise reasonable care of the customer's property while it is in
the facility's possession.
13. Maintain customer service and warranty records for a minimum of one
year.
14. Deal with complaints in a fair, professional and expeditious manner
and co-operate with established CISCO complaint mediation processes.
15. Conduct all business procedures in a professional and lawful manner.
16. Provide a clean and safe environment for receiving customers.
17. Employ qualified technicians.
18. Guarantee, in writing, the workmanship for as long as the owner owns
the vehicle, in addition to the warranty of parts and labour required
by the M.V.R.A.
19. Not acquire collision repairs through accident-scene solicitation.
20. Allow all consumers their freedom of choice of repair facility.
21. Treat each customer with respect and courtesy
22. Reinstate vehicle corrosion protection
23. Replace all safety devices to the manufacturer's specifications.
24. Uphold the high standards of our profession and always seek to correct
any known abuses within the collision repair industry.
25. Uphold the integrity of all repair facilities accredited by CISCO.
26. Honour the Consumer's Bill or Rights
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| An
accredited repair facility shall ensure that the
following rights of persons receiving repair services
from the repair facility are fully respected and
promoted:
A
PERSON RECEIVING A REPAIR SERVICE HAS THE RIGHT
TO:
1.
Select the repair facility of his or her choice.
2.
Receive an itemized written estimate before the
work is commenced, of the repairs required and
the cost for completing the work.
3.
Know from the estimate provided, the type of parts
that are going to be used in the repair, whether
original equipment manufacturer, aftermarket, reconditioned
or used parts.
4.
Authorize, in writing or by other reasonable means,
the repairs required before they are commenced.
5.
Expect the repair facility will complete the repairs
and parts replacement in accordance with the authorized
estimate.
6.
Receive an invoice from the repair facility only
for work completed. To include identification of
substitutions, changes, additions or deletions
from the authorized estimate.
7.
See the repair facility's hourly labour rate(s)
posted in conspicuous location.
8.
Know the repair facility is required to collect
and cannot waive the applicable deductibles on
insurance-paid work.
9.
Receive a written guarantee for workmanship performed
(excluding rust repairs) for as long as the vehicle
is owned, in addition to the warranty on parts
and labour provided for in the Motor Vehicle Repair
Act.
A
Reminder
The
owners of accredited repair facilities are required
to meet established equipment standards and have
pledge their facilities to a rigorous code of ethics.
This code, which includes a commitment to respect
and promote the rights listed above, is designed
to protect you and your property.
You
are encouraged to choose a repair facility that
will uphold these rights and that will treat you
with courtesy and respect.
For
answers to questions about these rights and for
more information about accredited repair facilities,
contact:
The Collision Industry Standards Council
Office of the Registrar
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| The
Accreditation Standards were developed to ensure safe
and quality repairs. The standards relate to existing
laws and regulations and require a basic level of equipment
to be in the business.
TO
BE ACCREDITED, A FACILITY MUST:
1.
Comply with federal, provincial and local laws
and regulations.
2.
Provide proof of registration with the Workplace
Safety and Insurance Board (formerly the "Workers'
Compensation Board").
3.
Provide proof of valid garage keeper's liability
insurance.
4.
Have a four point clamping system to safely secure
vehicles while making structural repairs.
5.
Have industry accepted measuring equipment capable
of making three-dimensional measurements on unibody
and non-unibody vehicles.
6.
Have electrical, mechanical and/or hydraulic pulling
equipment appropriate to repair.
7.
Utilize an industry accepted computerized or manual
estimating system.
8.
Utilize current dimensional guides / data appropriate
to the vehicle being repaired.
9.
Have the capacity to provide all-wheel alignments.
10.
Have the capacity to provide mechanical repairs.
11.
Have the appropriate welding equipment that meets
the vehicle manufacturer's requirements.
12.
Replace or restore the vehicle's structural components
to their pre-accident condition with regard to
location, integrity, durability and safety.
13.
Have the ability to safely raise the vehicle for
inspection and repairs.
14.
Have the capacity to safely remove the engine,
drive train and suspension when necessary for repairs.
15.
Have a paint system that can produce an original
equipment manufacturer's type finish.
16.
Have a paint spray booth that complies with appropriate
legislation.
17.
Only sublet auto body collision repair, auto body
and/or auto refinishing work to CISCO accredited
facilities.
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|
Lack
of standards for collision repair bad for consumer
Auto dealers back legislation to improve industry practices
Here's a scene few of us want to think about:
You've
had an accident. In a perfect world you would have
your vehicle towed to the original dealership and
have its repair shop do the work. After all, you
can be assured the dealer's licensed, has the proper
equipment, trained staff, properly disposes of hazardous
wastes and so on.
But
instead, you're kilometres away from the dealership,
seemingly in the middle of nowhere, and are being
unceremoniously towed to the nearest auto body shop.
You're not familiar with the area or the people who
run the shop.
You're
uneasy and dozens of questions flash through your
mind. How much extra is this going to cost me? Is
this shop dependable? Do they guarantee their work?
Do they have the right equipment and parts? How well
are the body repair technicians trained? Will the
repairs be safe?
Here
are the hard facts. There are 2,800 collision repair
shops in Ontario. And while dealership collision
repair shops do adhere to the strictest of standards,
there are really no consistent or enforced standards
out there.
Things
like customer codes of practice, i.e., consumer protection,
equipment, training of staff, quality of the repair,
conforming to labour and environmental laws and so
on, are left to the interpretation of the owner/
operator.
This
is bad for the consumer and bad for our industry.
So,
for the past several years, Toronto and Ontario Automobile
Dealers have been working with government, consumers
and various other key organizations on the best ways
for the collision repair industry to manage itself.
The result? New bill, new standards.
On
June 27, Conservative MPP Frank Klees (Oak Ridges)
introduced a new (private member's) bill in the Ontario
Legislature designed to bring much-needed standards
to the auto-body industry. It's called the Collision
Repair Standards Act, 2002.
"The
new legislation is a positive step and will mean
better protection for all consumers when it comes
to safety and repairs after an accident," says
John Norris, executive director of the Collision
Industry Action Group (CIAG), the largest collision
repair and auto refinish trade association in Canada.
"There'll
be fewer consumer complaints because all shops will
adhere to strict standards and established codes
of practice. For example, each will have to possess
and maintain the proper equipment to perform a specific
repair. Shops must employ licensed staff and must
conform to strict environmental protection standards."
Norris
is quick to point out that the legislation was not
conceived in a vacuum. "It's the result of four
to five years of ongoing efforts about industry management
between government, consumers, the Ontario & Toronto
Auto Dealers Association, the Collision Industry
Standards Council of Ontario (CISCO), the Collision
Industry Action Group (CIAG) and other collision
repair associations."
The
real "teeth" to the act involves the often
maligned insurance industry. Klees introduced a complementary
change to the existing Insurance Act that will force
car insurers in Ontario to reimburse shops for accident
repairs only if they comply to all the standards
that will be established (66 per cent of all collision
repair in Ontario involves insurance claims).
A
very important reason why auto dealers endorsed and
supported this legislation is safety. Your vehicle
must be repaired properly. There is no room for compromise it
must be brought back to its pre-accident condition,
or no payment will be issued. Faulty repairs can
render your vehicle a safety hazard for you as well
as for others on the road.
How
will the act be implemented? An advisory board will
set the standards for all collision repair and auto
body shops in Ontario. This process is not really
new Manitoba, Saskatchewan and British Columbia
currently operate in this manner and consumers there
are reaping the benefits.
The
TADA and OADA members fully support this legislation
and realize the enormous benefits to you, the consumer,
and to our industry as a whole.
--------------------------------------------------------------------------------
Dominic Mesiano, a Volkswagen dealer in the GTA, is president of Toronto
Automobile Dealers Association this year. For more information, visit
http://www.tada.ca.
Special
thanks to the Toronto Star
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In
My Estimation
A
Level Playing Field Ahead
The collision repair field is leveling out.
Ontario Member of Provincial Parliament Frank Klees recently introduced
the Collision Repair Standards Act, which calls for industry standards
to be established, and shops that do not meet them being regulated
to catch up.
Do not fear this type of legislation. Do not be afraid that high standards
will put you out of business. Do not struggle against impending requirements
that every collision repair operation govern itself to high levels.
Embrace it -- and meet it -- because it is one more step toward ensuring
that good businesses become profitable and bad operations cease altogether.
Already, provinces with public insurers have standards in place similar
to what Ontario can expect. Ontario is just following the pack of provinces
that have their minds and hearts in the right place.
What's more interesting in the proposed legislation is an amendment
to the Insurance Act restricting insurers from paying shops that are
not meeting industry standards.
This clause is just the type of regulation our industry needs in order
to profit from its hard work. No longer would unethical operators be
able to cut corners in order to offer a lower price. With standards
in place forcing honesty, the frenzied competition that holds prices
down would at least begin operating in a more level and equitable environment.
Shops that illogically deflate their prices would eventually find themselves
out of business and the industry supply/demand curve would level out
to a more reasonable plateau.
It's good to see the government getting involved. And with other provinces
poised to wade into similar waters, this industry could soon find itself
regulated nationwide.
Please do not read any Ontario-centric perspective between these lines.
The province is not leading the industry. Without Manitoba, Saskatchewan
and British Columbia there would be no structure in place to follow.
It is more a testament to the shark infested and sometimes unethical
feeding grounds of Ontario's collision repair industry that this legislation
had to come.
But if the Collision Repair Standards Act comes to fruition -- if the
industry can be regulated in this province -- then other regions will
undoubtedly follow.
Soon, the entire country could be operating on a level playing field.
Supporting this type of legislation -- and supporting your regional
associations -- can only move this industry forward.
It's a good day to be in collision repair. But I think we'd all agree
the better days are well in front of us.
LOWELL CONN
Email: lconn@bodyshopbiz.com
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|
Vehicle
Repair Programs and the Canadian P&C Insurance
Industry
Road
safety, reducing fatal and serious injury auto accidents,
and the rising costs of health care in Canada are
important priorities facing the property and casualty
insurance industry.
Putting
safe vehicles back on the road following repairs
is also a top priority. In fact, Canadian P&C
insurers have put a number of programs in place to
audit the repair of vehicles. These programs may
vary from company to company, but common practices
are followed.
Some
of the most common practices include:
1.
Electronic photo imaging - The collision repair facility
immediately sends photographs of the damage to the
insurance companies, along with a completed estimate,
listing the parts and labor required for repair.
2. Random re-inspections - These inspections are carried out by insurance
companies. During the re-inspection process, a vehicle is often checked
both before and after the repair, and all old parts must be accounted
for. Also the parts replaced are verified by a review of the original
invoice.
3. Voluntary branding - The Ontario Ministry of Transportation (MTO)
plans to introduce a mandatory branding program some time in 2002. Many
companies are already branding vehicles that have incurred severe structural
damage. The branding program is designed to keep unsafe vehicles off
the road.
One
of two brands is shown on the vehicle ownership - "irreparable" and "salvage." A
vehicle branded "irreparable" can be used
as a source for parts or scrap only. The vehicle's
structural damage is too extensive to repair safely
for road use. A vehicle branded "salvage" can
be safely repaired but cannot be used on the road
until it passes a very rigid structural inspection
approved by MTO. If the vehicle passes the inspection,
it is branded "rebuilt" and approved for
road use.
4. Preferred or Direct Repair Programs - While consumers have the right
to take their vehicle to any shop, many take advantage of the insurance
company's "preferred" or "direct repair program (DRP)".
Insurance companies guarantee the workmanship for as long as the customers
owns the vehicle if repaired at a preferred or direct repair shop. Additionally,
preferred or direct repair shops must have a good reputation for quality
repairs, and must be properly equipped to repair structurally damaged
vehicles.
5.
Audit programs - Insurance companies are equipped
with various electronic audit programs featuring
triggers that are able to select files for review.
The
Canadian P&C insurance industry continues to
work with the Collision Industry Standards Council
of Ontario (CISCO), which has developed an accreditation
and self-management program for collision repair
facilities. The insurance industry supports the proposed
standards, which include a compliance monitoring
and enforcement component. For more information,
visit The Collision Industry Action Group web site
at www.ciia.com .
Consumers
can also obtain more information by calling the Insurance
Bureau of Canada's Consumer Information Centre at
1-800-387-2880.
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| April
25, 2002
The
Honourable Timothy Hudak, M.P.P.
Minister of Consumer and Business Services
250 Yonge Street, 35th Floor
Toronto, Ontario
M5B 2N5
Dear
Minister,
Re:
Collision Industry Standards Council of Ontario
(CISCO) Accreditation Proposal
I
want to express to you my warmest congratulations
on your appointment as Minister of Consumer and
Business Services.
I
am also writing to express the support of the Insurance
Bureau of Canada (IBC) for the introduction of
an accreditation and standards program for the
collision repair industry in Ontario. IBC is the
national trade association representing most auto,
home and business insurance companies in Canada.
CISCO
has presented a comprehensive proposal to the Ministry
of Consumer and Business Services for the regulation
of the collision repair industry. As the representative
of most auto insurers in Ontario, we wish to encourage
the government to review CISCO's proposal and to
take action soon to implement an accreditation
and standards program for the collision repair
facilities.
The
current lack of province-wide standards has led
most auto insurers to develop their own "preferred
shop" or "direct repair" programs,
under which policyholders are encouraged to have
repair work done at designated garages. These preferred
programs have been reviewed by the federal Bureau
of Competition and have been found to be sound
ways of ensuring high-quality and cost-effective
repairs for policyholders. When repairs are done
at a designated shop, insurers guarantee the work
for as long as the customer owns the vehicle.
However,
a considerable amount of automotive repairs continues
to be done outside of these insurer-based programs.
For that reason, we believe that an accreditation
and standards program for the collision repair
industry will be of real benefit to consumers and
other stakeholders.
For
the last number of years, insurance representatives
have worked with the elected representatives of
CSICO, and with some government officials, to help
develop an accreditation and standards regime for
the collision repair industry. In our view, the
proposal put forward by CISCO details very effective
programs in these areas and we encourage the government
to move forward to implement these ideas.
However,
we have one major concern with the CISCO proposal.
In our view, insurers will not be adequately represented
on the proposed governing body. Auto insurers fund
the vast majority of collision repairs in Ontario
and thus have a critical stake in the success of
any accreditation and standards program. We believe
that the addition of a more balanced governance
model will help ensure that all stakeholders and
well served by the CISCO program and prevent the
proposed governing body from becoming a simple
advocacy group or trade association for the collision
repair industry.
Once
again, we strongly encourage you to move forward
with the review of CISCO's proposal and look forward
to further discussions on this matter with you
and your officials
Yours
sincerely,
Mark Yakabuski
Vice President, Ontario
c.c.
Alex Szabo, President, CISCO
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|
Finally
collision repair shop accreditation and self-management
are almost here.
Your
help is needed. For the first time, the collision
repair industry in Ontario has the means to improve
itself with stronger consumer service, meet legal
compliance standards that already exist, and ensure
proper equipment that allows skilled trades professionals
in our industry to safely and professionally repair
collision-damaged vehicles for the public. Many shop
have been concerned about "backyard" or
illegal repair facilities that fail to have the proper
skills, equipment and compliance with laws and regulations
In June, Bill 165, the Collision Repair Standards
Act (2002) was introduced by MPP Frank Klees in the
legislature. The private-member's Bill provides for
a framework that obligates collision repair and auto
refinish shops to meet industry accreditation standards.
These standards are expected to be similar to existing
industry standards already accepted in western Canada.
Shops must meet the standards required for the type
of business that they operate and no insurer would
be allowed to pay a repair bill from a non-accredited
facility. After receiving shop, insurer and public
input during over 15 open meetings held across Ontario,
elected representatives of the industry, working
under the name of CISCO ( Collision Industry Standards
Council of Ontario) produced a detailed report in
February 2000 for government that reflects much of
the content of this Bill. A copy of the Bill is available
at www.ciia.com on the opening page
Some
questions and answers:
Q
Does the Bill allow the industry to self-manage its
affairs ?
A The Bill allows for an advisory group to make recommendations to the
Minister and be allowed to work within the limits outlined in future
regulations
Q
Does the Bill put standards in place?
A The Bill allows the advisory group to set the standards for the Minister's
approval. The Bill allows for the right to set standards, but does not
specify what standards. It is expected that the CISCO standards would
be adopted.
Q
Who made up the standards ?
A The Board of Directors for the advisory group recommends the standards
Q
Am I required to be accredited ?
A Yes
Q
Am I required to upgrade my shop ?
A Your shop must meet the standards for the type of repair. i.e.- if
your shop just does autobody repair and not collision repair then anchoring
and measuring equipment isn't needed as a standard for that type of repair
Q
Can I get assistance to meet these standards ?
A CISCO is proposing that technical and shop assistance will be available
Q
Will I be forced out of business because of the costs
to meet standards?
A Most shops have the equipment needed in place already. If you do not
have the necessary minimum level of equipment, there are various options
to help.
Q
I'm just a small shop doing rust repairs, no collision
work. What happens to me?
A You just need to meet the standards for an auto body shop, where equipment
needs are lower
Q
Can I still get insurance paid business if I don't
meet accreditation standards ?
A No
Q
Does the Bill say who makes the decisions to accredit
me or not?
A The Minister makes the final decision from a recommendation from the
advisory group
Q
Does the Bill affect my DRP status with insurers?
A No, DRPs are individual shop arrangements, and the advisory group has
no influence on that
Q
Can the industry Board help me increase my labour
rate ?
A No, the advisory group is not proposed to have that power
Q
Is CISCO a trade association ?
A No, participation in industry trade associations is a positive voluntary
step, however, participation in accreditation is required under the Bill
Q
What about the illegal shop down the road. Will this
Bill help me with that problem ?
A That shop must meet the same standards as your shop. CISCO has outlined
a monitoring and enforcement program that addresses unlicensed , "backyard" facilities
and also encourages them to raise their standards to become accredited
Q
If my shop needs to be inspected, how do I know the
inspection is fair ?
CISCO proposes that no inspector can inspect a shop if he/she may have
a conflict of interest
WE NEED YOU to write or call your MPP and tell them that Bill 165 is
important to the industry, your business and your customer.
Also
send a faxed copy to Frank Klees, MPP at 905-707-3161
(back
to top) |
AN
OPEN LETTER TO ONTARIO AUTOMOBILE INSURERS
From Alex Szabo, President, Collision Industry Standards Council of Ontario
(CISCO)
For
over four years, elected representatives from over
a dozen collision repair and auto refinish trade
associations across Ontario have been meeting to
design a self-managed industry model for accreditation
and standards for shops. The concern over public
safety, unsafe repairs and enhancing the image of
the autobody repair industry, motivated these meetings.
With 2800 collision repair and auto body shops in Ontario, there is currently
no consistently enforced standard for compliance, equipment or customer
codes of practice for shops to follow, so a number of cars can be repaired
by shops that don't have the necessary equipment and training to safely
bring the car back to pre-accident condition. This problem exposes consumers
to possibly faulty repairs and may lead to another accident or not having
enough structural strength in the vehicle if it is involved in another
accident, to properly protect the passengers.
At these CISCO Board meetings, standards were developed to include legal
compliance to current laws and regulations, minimum equipment standards
to perform the required repair and improved customer service. These standards
are not difficult and rely heavily on standards currently in use in western
Canada.
With
the input from a variety of partners in government
and the insurance industry and after eighteen town
hall consultation and information meetings, the Collision
Industry Standards Council of Ontario (CISCO) in
February, 2000 generated a 118 page report to the
government of Ontario recommending an accreditation
program operated by a self-managed industry Board
with fair representation from insurers, shops, government
and the public.
The
Insurance Bureau of Canada (IBC) has in writing supported
the proposed standards, and its planned enforcement.
As well, on April 25 of this year, Mark Yakabuski,
Vice President, Ontario for the IBC wrote to the
Hon. Minister of Consumer and Business Service, Tim
Hudak, to urge action to soon implement the CISCO
accreditation and standards program for collision
repair facilities. In that letter, Mr. Yakabuski
stated
"For
the last number of years, insurance representatives
have worked with the elected representatives of CISCO,
and with some government officials, to help develop
an accreditation and standards regime for the collision
repair industry. In our view, the proposal put forward
by CISCO details very effective programs in these
areas and we encourage
the government to move forward to implement these
ideas." IBC's only concern was their representation
on the governing body.
In
June of 2002, conservative MPP Frank Klees, introduced
the Collision Repair Standards Act (2002) or Bill
165 for first reading at Queen's Park. This private-member
Bill would provide the framework for a strong consumer
protection package of standards that the collision
repair industry and its partners could all be comfortable
with, in moving all shops to a minimum level for
required equipment, legal compliance, and trades
training requirements with adherence to a consumer
Bill of Rights that would provide for full disclosure
as well as transparency to the consumer..
The Act provides that all collision repair and auto body shops in Ontario
must meet the standards set by an industry Advisory Board -standards
that are widely expected to mirror other similar standards programs in
public insurance provinces like Manitoba, Saskatchewan and British Columbia.
It is expected that shops must prove that they pay business taxes, are
properly municipally licensed, handle hazardous wastes like paint and
solvents properly and that they possess the proper equipment for the
type of repair. Shops require trades-licensed staff to operate the equipment
and perform a safe repair.
After careful consideration from all involved parties, including the
insurance industry, accreditation of collision repair facilities was
a win-win situation. The collision repair industry's image improves,
shops that do not meet legal standards are obligated to conform, safety
issues are addressed and the public is assured of safe repairs from licensed
trained technicians with proper equipment.
For
the insurers, they will know who meets the minimum
standards, their clients receive proper and safe
repairs and they reduce their liability. The headaches
that insurers often have with "chase" shops
that use aggressive towing solicitation, or illicit
operations and their abusive conduct, including their
abusive invoice amounts, is addressed with industry
enforcement in a self-managed model.
In
none of the discussions in the last four years, did
the industry Board at CISCO, nor in their report
to government, discuss possible price increases in
labour rates at shops as we all felt that was outside
of any possible authority that may be available,
and may indeed be anti-competitive. Nor did we in
all that time, discuss or even mention Direct Repair
Programs or DRP. Vendor relationships with insurers
are the responsibility of each individual facility
to either enter into or not. These individual business
arrangements can be entered into, and have for many
years been entered into, by repair faculties. DRP
relationships and activity have nothing to do with
accreditation of facilities or the self-management
of the industry.
Yet,
despite the CISCO Board not even considering these
issues, nor mentioning them in our report to government,
these issues are raised by insurers as reasons for
not supporting the movement to shop accreditation
and standards
The
CISCO Board and our report identify only the issues
that the industry self-management Board should be
involved in, and DRP and price fixing or pricemaintenance
are not one of those issues.
We
did feel, however, that the best method to influence
a facility to comply with these minimum standards
would be to ensure that insurance companies would
not be able to pay a repair claim to a non-compliant
shop. It was felt that insurers would welcome the
opportunity to have identified for them facilities
that were improperly equipped to handle the repair
that they were billing for, had no trades-licensed
or skilled techs to perform the repair safely, were
polluting the environment or charging for labour
and parts that were not put on the car. This requirement
to only pay shops that met standards should not be
interpreted as an attempt to negatively impact insurance
company DRP programs. We all would hope, and certainly
your customer would expect, that you are recommending
a repair facility that met industry standards.
We
are disappointed in the attacks on the Bill and the
proposed accreditation of repair facilities. A clear,
identifiable and fair set of standards to better
serve the public, would, we had thought, been in
the best interests of all, especially the motorist.
The
collision repair industry and CISCO, encourage your
support for this positive move to help us all improve
our abilities to serve our mutual clients ensuring
honest, safer repairs from collision repair facilities
that meet reasonable and fair industry standards.
Yours
truly,
Alex
Szabo, President
Collision Industry Standards Council of Ontario (CISCO)
(back
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|
On
Thursday October 10, 2002 , shortly after 10:00 a.m.,
MPP Rob Sampson will be presenting to the Ontario
Legislature at Queen's Park, the Collision Repair
Standards Act, (2002) for second reading.
This
Bill, originally introduced as a private-members
Bill by MPP Frank Klees, will empower the Minister
to establish a regulatory framework for the collision
repair industry, including the certification of collision
repair shops.
The
Bill establishes a collision repair Advisory Board
to perform an advisory function to the Minister.
This Advisory Board sets the standards ( in legal
compliance, equipment and customer relations),and
reports to the Minister with recommendations to accredit
collision repair facilities. The Bill also amends
the Insurance Act to provide that, a consumer may
have collision repairs performed at any certified
collision repair shop and insurance payments may
only be made in respect of repairs that are performed
at certified collision repair shops.
This
is the result of almost five years of work by CISCO
(the Collision Repair Standards Council of Ontario)
and reflects a report prepared by the elected representatives
of the collision repair industry in this province,
towards an industry self-managed shop accreditation
program.
This
may be the most significant opportunity for the improvement
of our industry in many years, and we are asking
you to join us in the public gallery on Thursday
morning to clearly identify to members of the Legislature
that the collision repair industry supports this
Bill.
Support
from shops, suppliers, insurers, industry manufacturers,
and distributors continues to be CRITICALLY IMPORTANT,
and STRONG SUPPORT at Queen's Park will provide the
legislators with a clear understanding of this industry's
enthusiasm and interest in the passage of this Bill.
WE
INVITE YOU TO JOIN US IN THE PUBLIC GALLERY FOR 10
A.M. ON THURSDAY OCTOBER 10, 2002 AT QUEEN'S PARK,
TORONTO FOR A SHOWING OF STRONG SUPPORT.
Thank
you for your help.
Alex Szabo, President, CISCO
Collision Industry Standards Council of Ontario
|
|
SECOND
READING OF COLLISION REPAIR STANDARDS ACT SUCCESSFUL
October
10, 2002
Fourty
shops owners and operators were in the galleries
at Queens Park, Toronto today to watch all
three political parties unanimously support the second
reading of the Collision Repair Standards Act, 2002
It
is expected the Act will go quickly to Committee
for hearings with the window for third reading and
final acceptance as law shortly afterwards.
The
Collision Repair Standards Act, 2002, provides for
a province-wide series of standards involving minimum
equipment levels, confirming legal compliance and
a consistent minimum level of customer service, set
by regulation. The Advisory Board would report to
the Minister and have the power to recommend which
shops to accredit and which shops to remove from
accredited status. All shops must be accredited in
Ontario to operate legally.
MPP
Frank Klees, Oak Ridges, who originally sponsored
the Bill, until his promotion to Minister of Tourism
last week obligated the transfer of second reading
introduction to MPP Rob Sampson, Mississauga South,
has also included in the Bill, a provision under
the Insurance Act, which will mandate all insurers
to only pay auto damage repair claims to accredited
shops.
Alex
Szabo, is President of CISCO, the Collision Industry
Standards Council of Ontario, an industry-led representative
body of collision repairers, which supports the Bill
and authored a major report in February, 2000 that
is the basis for this legislation. He says The
Collision and Auto Body Industry in Ontario appreciates
the efforts of the Hon. Rob Sampson and the Hon.
Frank Klees for bringing Bill 186 forward that will
protect the motorist from unethical shops that provide
unsafe repairs. This Bill will also allow the Collision
and Auto Body Industry to raise the level of professionalism
and improve trade standards, encourage higher levels
of legal compliance and have a say in the future
direction of our industry. October 10th, 2002, is
a very good day for the Auto Body and Collision Repair
Industry in Ontario.
(see
headlines) |
|
Presentation
to Committee Bill 186
November
7, 2002
Mr.
Katch Koch, Clerk,
Standing
Committee on Finance and Economic Affairs
99
Wellesley Street West
Room
1405, Whitney Block
Toronto,
Ontario
M7A
1A2
Presentation
to the Committee reviewing the Collision Repair Standards
Act, 2002 (Bill 186)
Dear
Mr. Chairman and members of the Committee:
My
name is John Norris and I am Executive Director of
the Collision Industry Action Group. Thank you for
the invitation today to speak with you regarding
the Collision Repair Standards Act, 2002 (Bill 186),
The
Collision Industry Action Group or CIAG is an amalgamation
of the collision repair and auto refinish trade associations
in Durham, Toronto, Peel and Hamilton/Niagara regions.
A number of our member Directors are here with us
today to encourage the passage of Bill 186.
The
Collision Industry Action Groups members include
almost 400 shop and supplier facilities ranging from
small two man repair facilities to large multi-national
coatings firms. Our collision shop members that we
represent range from the small restoration shop with
one or two employees, through large independent shops
with several dozen employees all the way to dealership
collision centres, chain and franchised repair shops
in the collision repair, the auto body and the auto
refinish sectors.
Some
shops only do exterior rust or bump and dent type
work-they are the autobody shops. Some shops do only
painting of a vehicle after the accident- they are
auto refinish shops. Collision repair shops perform
safe structural repairs to bring the car back to
its original pre-accident condition. Each of these
types of shops would need different equipment and
different levels of trained personnel.
Our
association and our member associations in regional
areas have been involved in bringing workshops and
consultations over the last four years across Ontario,
listening to the industry and industry supplies and
partners- using their comments and suggestions to
help better refine the Act and its future regulations.
From Thunder Bay to Ottawa, and Windsor to eastern
Ontario, the industry and trade associations have
held or will hold over 20 of these opportunities
for input.
As
an industry group, we have always been concerned
over unfair business practices, the chase shop
that attracts its business from accident scenes while
motorists are confused or injured and shops, that
because of their lack of trained personnel and proper
repair equipment required for that type of repair,
put public safety at risk with incomplete or fraudulent
repair of a customers car. A car that will
be put back on the road and be asked to perform at
highway speeds and be able to absorb the next collision
impact in the same fashion as the first accident.
The
collision repair industry is currently unregulated.
There is no consistent regulation for the almost
3,000 facilities in this province. Regrettably, this
industry does have its fair share of unlicensed,
poorly equipped facilities with staff that have no
training and even less equipment. Their environmental
controls for spray painting involve opening two bay
doors at either end of the shop and hoping for a
strong breeze. When you ask them if they are paying
taxes and premiums to the WSIB, they quickly change
the subject, or in the cae of one shop I visited,
run out the back door. A series of consistent standards
as advocated in the Collision Repair Standards Act,
2002 would be a great means of having safe consumer friendly
repairs. These standards would not be new- indeed
shop standards and accreditation for Ontario means
we would be the fourth province to put into use a
series of accreditation standards, after B.C., Saskatchewan
and Manitoba. These programs in other Canadian provinces
are used by the public insurers in those jurisdictions
to identify which shops receive a higher labour rate
for their work. Active insurer participation in these
other provinces, and the threat of insurer cash withholding
for these not in compliance, have been keys to the
programs in other provinces.
Regulations
can be added later, in consolation with the industry
and government and others, to add substance and specifics
to the Bill. The CISCO package is a very good start.
We
urge you to approve the Bill today for third reading
as written.
We
also understand that there will be those here today
that will not be pleased with this Bill. Some will
be shops that do not want to meet legal compliance,
or are afraid that the correct equipment that is
needed, and that they have been charging for its
use, is not in their possession. It was never the
industrys position that shops would have to
purchase equipment not needed for the type of repair
being performed. If you are only doing auto body
work, and not structural repairs for collision, then
items such as frame racks, anchoring or measuring
systems, even spray booths, if no painting is being
performed, would not be needed.
Small
shops will need to meet legal compliance standards
that Ontario has in force now. They will not be obligated
to buy expensive equipment that would never be used
for the type of repair they are performing. We all
would want to see this as SAFELY performing.
Insurers,
we would hope, would want to pay for repairs at shops
that are accredited and provably safely and properly
repairing collision-damaged vehicles. Why would an
insurer want to continue paying shops that charge
abusive billings to insurers and consumers, dont
have any ethics, equipment, training or environmental
controls? Im sure none of us would want to
have one of these improperly repaired cars coming
at us on the opposite lane at highway speeds. Insurers
will only pay accepted doctors, dentists and attorneys-
we are only suggesting that they pay accredited collision
repair facilities.
Regrettably
many illicit, polluting and improperly equipped and
poorly trained shops, profit from being paid for
a shoddy or possibly unsafe repair by insurers in
Ontario. I would hope that the reason for these continued
payments to these horrible abusive repair facilities
is because insurers are somehow unaware that they
are rewarding this abuse and helping to promote and
foster further consumer horror stories.
With
strong consumer standards, the insurers will now
be able to save money instead of paying outrageous
invoices for repairs not performed and the industrys
image and credibility, its opportunity to attract
eager new apprentices and the growing respect for
protected consumers would be all well worth it.
Please
support Bill 186
Thank
you, John Norris
|
COLLISION
REPAIR ACT UPDATED
Finance Committee adds changes prior to third reading
Insurance companies now allowed to pay uncertified shops
November 30,
2002
The
new Collision Repair Standards Act (Bill 186), that
provides for a industry-managed Advisory Board to
recommend shops for certified or accredited status
was reviewed clause by clause by the members of the
Standing Committee on Finance at Queen's Park on
November 21. This final review, done after second
reading of the Bill now provides the specific requirements
for the Bill to allow for third reading in the House.
If third reading is successful, then the Bill becomes
law.
A
major change to the Bill is the removal of a clause
that required insurance companies to only pay certified
shops. Insurers had lobbied very hard to remove this
amendment. This requirement was felt critical in
making sure illegal facilities were not "rewarded" with
insurance monies for work done and would obligate
shops to raise their standards in compliance, equipment
needs and customer service, in order to receive insurance
payments. Under the new Finance Committee-revised
Bill, insurers can now pay uncertified shops, if
they wish, that do not meet minimum standards. The
Bill may provide for changes in future regulations
to come. As well, insurers, if they wish, can remove
a vehicle from a certified shop and arrange transfer
to an uncertified shop for the repair by refusing
to release the vehicle to the original shop. This
also allows for insurers to refuse payment for unauthorized
invoices or bills.
The
Finance Committee after receiving a number of briefs
and presentations from industry groups and shops
as well as insurance companies and trade associations,
made the following changes:
-adding
towing services to be regulated if the tow trucks
are owned or operated by a collision repair shop
-the
Advisory Board composition changed to 4 persons from
the collision repair industry, 4 members of general
public and two government representatives for a total
of 10 members
-the
Advisory Board must make a public annual report
-the
Advisory Board to be self-financing and can charge
reasonable fees to do so
-penalties
for non-compliance go up to $50,000 or 6 months imprisonment
or both for subsequent offences
-all
customers will receive a Bill of Rights document,
that outlines their right to use a certified shop,
that the repairs are done safely, that original equipment
manufacturer and/or aftermarket parts are identified,
and a toll free phone number and internet address
for the Advisory Board
-"collision
repair" is defined with shops that only repair
rust or cosmetic damage excluded
(see
headlines) |
|
COLLISION
REPAIR STANDARDS ACT PASSED BY LEGISLATURE INDUSTRY
TO BE SELF-MANAGED
December
13, 2002
After
almost five hours of debate, complete with adjournments
and occasionally hoots and shouted comments on the
last sitting night prior to Christmas break, the
provincial legislature unanimously approved for third
reading into law, the Collision Repair Standards
Act, 2002
The new Bill would provide the framework for industry self-management
of the collision, auto body and auto refinishing industry by authorizing
an industry advisory board comprised of 10 members (4 from collision
repair, 4 members of the public and 2 government representatives) to
oversee the introduction of standards for the industry. The Board would
then, based on the collision shop's compliance with those standards,
recommend to the Minister for the shop to be accredited or not accredited.
All shops doing collision work must be accredited and failure to do so
can mean fines up to $50,000 or six months imprisonment or both for future
offenses.
It is expected that many of the shop standards will follow the CISCO
or Collision Industry Standards Council of Ontario recommendations, from
a brief submitted to government in February 2000. Those standards largely
reflect standards already in use in western Canada.
The Bill, which had a number of changes that were inserted by the Standing
Committee on Finance, was approved by the legislature as the Finance
Committee had recommended. The Bill also provides that all shops meet
industry standards, consumers can have their vehicle repaired at a shop
of their choice, and that both the insurer and car owner must release
the vehicle to a repair shop prior to any insurance payment for repair
being made.
The Bill also includes a mandatory "Bill of Rights" to be supplied
to customers that includes information on the customer's right to safe
repair, right to a shop of their choice, an advisory that they do not
have to use an insurance company's recommended shop, (although they can
if they wish), a required declaration of whether parts used are Original
Equipment Manufactured or aftermarket, and a statement from the shop
that the repair has been made in accordance with all applicable safety
standards. |
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