Bangkok Post : Auto-repair reference prices agreed
by admin on Nov.30, 2011, under Car insurance
The General Insurance Association together with garage-related associations are set to introduce reference prices for labour costs in repairing cars as a guideline for car owners.
The historic floods are estimated to have affected over 40,000 cars nationwide, with half of those carrying first-class or fully comprehensive insurance, which covers the vehicle, the life and injury to the driver, passengers and third-party property damage and liability.
Somporn Suebthawilkul, chairman of the motor insurance committee of the association, said it agreed last week with the Union Motors Repairing Association of Thailand and the Insurance Accredited Garage Association to set reference prices for labour costs in car repairs roughly based on the extent of damage incurred.
For instance, labour costs were set at 8,000-10,000 baht for damages caused by flooding that reaches the car carpet (about 15 items to be repaired), 15,000-20,000 baht for flooding reaching the car seats (26 items), and 20,000-30,000 baht for flooding reaching the console and dashboard (about 39 items).
For totally inundated cars, including those where water reaches the roof, reference prices for labour are not more than 70% of the car price. If owners want to repair these vehicles, insurers will treat them as a total loss, paying in full the amount insured.
He said the reference prices would go before Office of the Insurance Commission today for endorsement.
“We estimate at least 100,000 baht should be spent for car repair per unit,” he said. “Claim payouts for those with first-class coverage are estimated at 2 billion baht.”
“But don’t forget they are just a benchmark for bargaining with garages. Prices could run higher than listed and some garages are not members of the two associations.”
His insurance association asked garages, car dealers and car parts suppliers not to raise spare parts prices for troubled car owners.
Pravej Ongartsittigul, secretary-general of the OIC, said although there is no official penalty or legal action for the garages which do not cooperate with the announcement, they will likely face public sanction.
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