Relates to requiring disclosure of types of replacement parts used in automobile collision repairs

Summary of specific provisions

Amends section 398-d of the vehicle and traffic law by adding a new subdivision 2-a which prohibits motor vehicle repair shops from using or installing any type of replacement crash part for the repair of a collision damaged motor vehicle without disclosing the type of replacement crash parts to the owner of the vehicle and obtaining written authorization therefore. A Replacement Crash Parts Notice and Authorization Form is also provided in the amendment, listing the type of replacement crash part proposed to be used, the applicable warranties and notice of whether new original equipment manufacturer (OEM) replacement parts, new aftermarket replacement crash parts, recycled replacement crash parts or re-manufactured replacement crash parts will be used in the repair.

Amends section 3411 of the insurance law by adding a new subdivision (n) to prohibit insurers from directly or indirectly requiring the use or installation of any type of replacement crash part for the repair of a collision damaged vehicle without disclosing the type of replacement part to the owner of the vehicle. In addition, provides that only new original equipment manufacturer (OEM) replacement crash parts may be used on any vehicle during the year of manufacture and for two succeeding years thereafter, or the duration of the warranty, whichever is longer. In the event non-OEM parts are used or installed, and such parts are ill-fitting or require additional labor or materials in their installation or use, the insurer shall be responsible for the cost of such additional labor and materials.

Justification

The consuming public is often confused by the many types of replacement crash parts which are available to be used in the repair of their collision damaged vehicles. This confusion is heightened when some insurers direct the use or installation of parts other than original equipment manufacturer (OEM) replacement crash parts. As a matter of public policy, the use of genuine crash parts (parts manufactured by or for the company that manufactured the vehicle itself) should be required to assure quality, safe repairs. Studies have shown that some alternative parts create unnecessary safety risks due to improper fitting. These risks must be avoided in the interest of the consuming public.

This bill would require the use or installation of OEM parts on all vehicles during the year of manufacture and for two years thereafter, or the duration of the vehicle's warranty, whichever is longer. No

insurance company may require the use of imitation or salvage parts when negotiating repairs on such a vehicle with any repairer. For all other vehicles, the repair shops and insurers would be under a strict duty to disclose to the vehicle owner information on the use of certain replacement crash parts in repairs so that owners may choose whether imitation (aftermarket) crash parts, used salvage (junkyard) parts, or new genuine crash parts shall be used in the repair. By removing an insurer's ability to direct the use of certain parts in the repair of a collision damaged vehicle, the consumer's right of choice is preserved and his ability to make informed decisions is further enhanced.

Legislative history

(2006) A11238: Referred to transportation (2007) A2885: Referred to transportation (2007) A2885: Enacting clause stricken (2007) A8494: Referred to transportation (2008) A8494: Referred to transportation (2009) A5964: Referred to transportation (2010) A5964: Referred to transportation (2011-12) A.5042: Referred to transportation

Fiscal implications

None noted.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law, provided, however, that effective immediately, the commissioner of motor vehicles and the superintendent of insurance shall promulgate such rules and regulations as are necessary to implement the provisions of this act on or before such date.