Non-genuine parts in an insurance repair: what you can ask for

In Australia, insurers can use non-genuine and recycled parts in smash repairs if that fits the policy and parts policy. The General Insurance Code of Practice does not guarantee genuine OEM parts, but it does require the insurer to stand behind the quality of the materials used when it chooses the repairer and to handle complaints about those materials.

How insurers treat non-genuine parts

Insurers in Australia can use non-genuine and recycled parts in smash repairs. The material available does not show a general rule that bans aftermarket or recycled parts. It also does not show a universal entitlement to genuine OEM parts. Whether genuine parts are used depends on the policy wording and the insurer’s parts policy.

The Motor Vehicle Insurance and Repair Industry Code of Conduct defines a Parts Policy as the insurer’s policy about the use of new, recycled, or non-genuine parts. That Code requires signatory insurers to have and communicate a Parts Policy. It is mandatory in New South Wales and voluntary in other jurisdictions for signatory insurers and repairers.

New parts may be used.
Recycled parts may be used.
Non-genuine aftermarket parts may be used.
The key question is what the policy and Parts Policy say.

What the General Insurance Code of Practice requires

The 2020 General Insurance Code of Practice does not mandate genuine parts. It does not prohibit non-genuine or recycled parts. The relevant verified provision says that where the insurer has selected and directly authorised a repairer, the insurer accepts responsibility for the quality of the work and the materials used.

That means complaints about the repairer’s conduct, timeliness, quality of work, or the materials used are handled under the insurer’s complaints process. The Code supports a complaint if the parts or materials used are poor quality, unsafe, or inconsistent with what was promised.

The insurer must stand behind the materials used when it chooses the repairer.
The Code does not set a single parts standard for all claims.
The Code does not guarantee genuine OEM parts.

What a policyholder can ask before authorising a repair

Before authorising a repair, a policyholder can ask what kind of parts will be used and whether the insurer’s Parts Policy allows them. That is the practical point to check because entitlement to genuine parts depends on the policy and the insurer’s own rules.

One insurer’s product disclosure statement states that for vehicles under 3 years old, genuine new parts will be used when reasonably available. For vehicles 3 years or older, it may use genuine new parts or quality non-mechanical reusable parts. It also says non-genuine parts may be used for windscreens, sunroofs, window glass, radiators, and air-conditioning components, regardless of age.

Ask whether genuine, non-genuine, or recycled parts may be used.
Ask whether the vehicle age changes what can be used.
Ask whether the parts must meet safety, warranty, or Australian Design Rules requirements.

Disclosure and complaints about parts

The material shows a disclosure expectation rather than a single Australian statutory notice rule. The Motor Vehicle Insurance and Repair Industry Code of Conduct requires insurers to have a Parts Policy that explains the use of different types of parts. Insurers commonly place this in the product disclosure statement.

The General Insurance Code of Practice does not require a specific written notice about non-genuine parts, but it does require the insurer to handle complaints about the materials used when it selects the repairer. Industry commentary also says the type of parts used in the repair should be disclosed to the consumer.

Check the policy and product disclosure statement.
Ask for the insurer’s Parts Policy.
If the parts used do not match what was disclosed, raise a complaint.

What regulators say about sourcing parts

AFCA says it is not fair or satisfactory for a financial firm to do nothing just because a required part is difficult to source. AFCA expects the firm to make all reasonable attempts to source the required parts, even if that means looking outside the repairer or supplier network it usually uses.

This addresses how parts are sourced, not a right to genuine parts. The available material does not show a specific Australian rule that forces all repairs to use genuine parts. If you want to know what applies to a particular claim, check the policy wording, the insurer’s Parts Policy, and the insurer itself.

AFCA expects reasonable sourcing of parts.
It does not say genuine parts must always be used.
For a specific repair, ask the insurer or the repairer who they are using.

What is clear overall

The verified material shows that non-genuine and recycled parts are allowed in Australian smash repairs when the policy permits them. The General Insurance Code of Practice makes the insurer responsible for the quality of materials used when it selects the repairer. The Motor Vehicle Insurance and Repair Industry Code of Conduct requires a Parts Policy that explains what kinds of parts may be used. For the exact position on a particular claim, check with the insurer, the repairer, or AFCA.