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Probe into fake car parts claims

Insurers and government agencies examine allegations after former employee raises concerns.
Posted on 08 October, 2020
Probe into fake car parts claims

Insurance companies are investigating claims an Auckland business has been using fake car parts for collision repairs.

The Insurance Council of New Zealand says its members have been made aware of reports a supplier was allegedly using counterfeit parts, including headlights and bumpers, and passing them off as genuine.

Tim Grafton, council chief executive, says: “We understand that since late last year a supplier has provided car parts as car manufacture branded when they are not. The matter is naturally of concern to insurers who have established dedicated teams to investigate the situation.”

A former employee of the company has spoken out and it is believed hundreds of vehicles around the country have been repaired with aftermarket components sold by the business that weren’t made by the original car manufacturer.

The council does not believe drivers of cars in which non-branded parts have been used are in danger.

However, insurers are contacting drivers to check repairs and gather any relevant information to pass on to the Commerce Commission.

Officials from the Ministry of Business, Innovation and Employment (MBIE) and the NZTA have also been informed about the matter.

“Affected customers will be proactively contacted by their insurer if there is anything that needs to be addressed,” says Grafton.

“We understand many customers have been contacted already, and we expect more may be contacted as the investigation continues in the coming weeks.

“If you are contacted, your insurer will provide you with clear instructions on what you need to do to have your vehicle assessed and if subsequent actions or repairs are needed.

“It’s important to note the use of non-branded parts that meet recognised standards to carry out vehicle repairs is not unusual and wouldn’t in and of itself present any quality concerns.”