Providence, Rhode Island — America’s tiniest state just made a big move in collision repair as Rhode Island’s general assembly passed into legislation a ruling that would require insurers to cover the cost of OEM repair procedures.
These amendments to the Unfair Claims Practices Act, signed off by Gov. Daniel McKee last week, introduce a mandate that insurers “acknowledge and compensate an auto body repairer for documented procedures identified as necessary by the original equipment manufacturer, paint manufacturer, when included in the repairer’s appraisal, or when requested by the repairer,” reads an excerpt from the legislation.
Senate Bill 0925 also comes with additional convenience measures for repair shops, including that insurers are now required to schedule appraisal appointments promptly after a claim is filed, within normal business hours and at a mutually convenient time.
It is specified elsewhere in the bill that “promptly” is defined as within three business days of a bodyshop’s initial request for appraisal., though that timeline can be extended under certain circumstances.
“If the insurer’s appraiser fails to inspect the damaged motor vehicle within the allotted number of business days for an initial appraisal or a supplemental appraisal, the insurer shall forfeit its right to inspect the damaged vehicle prior to repairs, and negotiations shall be limited to labour and the price of parts and shall not unless objective evidence to the contrary is provided by the insurer, involve disputes as to the existence of damage or the chosen manner of repair,” according to the bill.
The option to pursue independent appraisal processes, should the insurer and driver not agree on the amount of loss, has also been permitted under the new bill and comes bearing additional timeline requirements for both parties; namely that mutual agreement on a third-party appraiser be made within three days, unless an extension has been specified.
Senate Bill 0925 officially came into effect immediately following its signing last week.
One Response
One small step.
It is sad that it gets to this in our industry, where the government has to step in and tell someone that they need to pay for services rendered.