Positive feedback from some insurers was received this week, for those body shops who do work for the insured sector.
Cash flow relief initiatives from Hollard to support motor repairers include paying invoices for all completed jobs where the clients have not yet collected their vehicles; offering interim payments for all repairs that are currently in progress, subject to work in progress reviews and lastly, giving repairers’ the option for Hollard to pay their parts suppliers directly without impacting the repairer’s commercial arrangements, margins and profitability.
Momentum Short Term Insurance (MSTI) has also announced interim relief for the motor repairers offering liquidity assistance and volume discounts. They will be suspending settlement discounts in totality on all repairs that have not gone through final costing, for the next three months. In a notice to repairers’, MSTI said they realised that the lockdown would mean a sharp decrease in claims volumes and acknowledged that even post lockdown they expect, in all likelihood, to see a staggered approach for people returning to work, which may also impact claims frequency. MSTI confirmed that they were willing to engage with body shops on an individual basis and make available 50% of the initial assessment costs upon proof that the vehicle is in the repairers’ workshop and parts have been ordered.