The Retail Motor Industry Federation's bodyshop services Division (BSD) has called on the Association of British Insurers (ABI) to produce a code of practice to regulate the rise of 'phoenix' bodyshops - those that fail only to re-emerge under a new name.
The RMI's concern centres on the continuation of work provision by some insurers to a proportion of these 'new' bodyshops.
Bob Hood, director of the RMI bodyshop services division, said: "Some 'resurrected' businesses create artificial trading conditions. As a result many repairers suffer from the actions of a proportion of liquidated bodyshop businesses that simply write off their debts and start operating again. Insurance work should always be directed into reputable bodyshops. We feel that the insurance industry can greatly help the body repair sector by ensuring that they stop dealing with failed bodyshop businesses that re-appear under a new banner."