The imminent introduction of what is referred to as the 'pay before release' legislation will soon affect motorists who are looking to have their cars repaired through an intermediary or broker.
Some motorists have had to pay thinking that they were insured. What happens in this instance? Are you liable if payment is not made by your insurer?
South African Motor Body Repairs national director Richard Green explains.
Once pay-before-release is instituted we would obviously have the right to hold the car, once paid, we would release the car.— Richard Green, National director - South African Motor Body Repairs
In the current instance, we release the vehicle on the basis of trust. If we don't get paid we have to institute action against somebody and that is, in fact, the insured party.— Richard Green, National director - South African Motor Body Repairs
Green says they are simply changing their stance to match that of other areas of the automative industry.
If you take your car into a dealer for a service, the first thing you do is you pay. That is the way the auto industry works. We are the only sector that - because of the insurer relationships - historically had released the vehicle on the basis of trust.— Richard Green, National director - South African Motor Body Repairs
The insurer will then pay. There might be a two- or three-day delay because of the administrative processes that have to take place but once the cash has flowed we hand over the car to the consumer.— Richard Green, National director - South African Motor Body Repairs
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