Perak auto workshop association calls for insurance companies to be fair on discounts, labour rates

IPOH: The Perak Association of Workshop Owners' Association (PAWOA) has called on insurance companies to be fair on automotive part trade discounts and labour rates.

Its president Kong Wai Kwong said there should be an adequate solution on the matter to ensure that workshops could still earn an income while the vehicles of customers are also repaired properly.

"There should be a fair playing field and workshops should not be suppressed by unreasonable conditions imposed by the insurers. Some of the spare part discounts imposed on us are unfair, causing us to operate at a loss," he told a press conference here on Saturday (Oct 3).

He said it would also not be fair to customers.

"Some customers would think that we are cheating them. We really hope for a fair solution," he added.

The Malaysian Competitive Commission had found last month that the General Insurance Association of Malaysia (PIAM) and 22 general insurers have infringed the Competition Act.

This was related to an arrangement between PIAM and the Federation of Automobile Workshop Owners’ Association of Malaysia (Fawoam) on the minimum hourly labour rates and spare part prices for six commonly used vehicles.

PIAM added that it would appeal the decision.

Kong said PAWOA has also decided to stop working with an insurance company on the matter.

"We still hope to hold discussions with the company to resolve the matter," he said.

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