Collision Industry Alliance Releases Fraud Awareness Circular

For Immediate Release:
August, 2007

Contact:
Norbert Zaenglein
402-762-5110

Clay Center, NE – August 27, 2007 – The National Collision Industry Alliance (NCIA) released a circular to raise awareness of the liability associated with performing substandard repairs. The circular reads: “Don’t Fall Into The Insurer’s Fraud Trap…Fix it Right…Bill it Right”.

“Collision repairers are mired in dangerous misconceptions that adhering to insurer guidelines relieves the repairer of civil and criminal liability for shoddy repairs,” said NCIA founder, Norbert Zaenglein. “Nothing could be more untrue. Fraud and the accompanying liability occur whenever a vehicle has not been repaired in compliance with policy provisions or whenever a repair has not fully indemnified a claimant. Shops are not relieved of liability because the insurer recommended, suggested or approved of a substandard repair or specified the use of an inferior crash replacement part.”

“Shops are the repair experts and must perform and account for each and every step of the repair in compliance with all policy provisions and industry standards so that claimants are indemnified.” Zaenglein explained. “Performing substandard repairs can have serious consequences,” Zaenglein said referring to a manslaughter charge filed against a contractor in quality-of-material issue, which led to the collapse of a part of a tunnel that killed a woman. The criminal indictment came after the government called the ceiling collapse avoidable if only the contractor considered that the adhesive used to hold vital support anchors could weaken. "Anyone performing a repair of any kind should pay attention to the manslaughter charge," Zaenglein said, “there is no difference between using unsafe adhesives in the construction of a tunnel and using substandard products, methods or inferior crash parts to repair a vehicle. The civil and criminal liability rests with the shop."

Shops also expose themselves to civil and criminal liability when they perform substandard repairs knowing that insurers will condone and reward shoddy work with additional referrals. “Such actions create a criminal conspiracy between shop and insurer to defraud claimants and also deprives other shops of the ability to compete fairly in the marketplace. The antitrust implications of such conduct are enormous.” Zaenglein said. Why would anyone take such risks when insurers are contractually obligated to pay for all repairs necessary to indemnify claimants?”

The fraud awareness circular is available at www.nationalcia.com/posters/fraud.pdf. Alliance handouts and circulars may be freely distributed or published in association newsletters. Why not join NCIA and demonstrate your commitment to lawful claims settlement practices?

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