Motor Vehicle Repair Industry Contingency Fund

The Motor Vehicle Repairs Act establishes the Motor Vehicle Repair Industry Contingency Fund (the Fund) to provide protection to persons who have suffered a loss in connection with a motor vehicle through their dealings with a motor vehicle repairer. The Fund is financed by licensing fees paid by motor vehicle repairers.

Claims are usually made on the Fund when a motor vehicle repairer ceases to trade, either on a voluntary basis or a forced closure. The type of claims made relate to repair work that has been completed incompetently.

A claim on the Fund must be in writing verified by a Statutory Declaration.  A person who lodges a claim on the Fund must provide Fair Trading with evidence that they have taken all reasonable steps to recover their loss from the repairer through normal legal channels.  The maximum claim on the Fund is $30,000.

Once a claim is paid through the Fund, Fair Trading instigates debt recovery action against the repairer.