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Insurance for defective parts for members

We are proud to launch insurance to cover the labour costs for jobs involving defective parts.

The value of collaboration between RMI associations was once again highlighted this month with the culmination of two years of discussions between the MIWA NEC and the TEPA NEC. The requirement was to bring about a change to the industry which would see the Component Parts Industry providing the workshops with a recovery for labour costs incurred during the replacement of a defective part.

At a cost of R200 per month, iTOO, the insurance policy for MIWA members, provides cover for a set number of hours’ work, as outlined by Haynes Pro. MIWA will therefore reimburse workshops a flat rate of R220 per hour of labour costs.

To access this cover, MIWA members are required to submit the part deemed defective to the RMI (TEPA) Parts member, who will then investigate the part. If the defect is confirmed, the RMI (TEPA) Parts member will hand over a report about the faulty component to iTOO and TEPA, which will then pay over the reimbursement for labour costs to the RMI (TEPA) Parts member. This amount will, finally, be paid over to the workshop.

A part may be considered defective if it has failed within the warranty period. However, if the failure is due to poor workmanship or fitment errors; or if the wrong part was provided; if the part was fitted by unqualified staff; if the part was abused during, before or after fitment (or by the driver); if warranty provisions have not been complied with or if fitting instructions have not been adhered to, the part will not be considered defective.

Please check with your TEPA parts supplier to make sure they offer this cover.

Click here to download the presentation for more details.