Labour Costs Insurance
Who pays for your labour if you have a defective component part?
As a member of MIWA or ARA you should check if your TEPA Parts Supplier has iTOO “Defective Parts” insurance cover.
You can provide Labour Costs Insurance for defective parts to your workshop clients.
Only R200 per month to cover workshops with labour costs!
Contact HRS Insurance to sign-up as an accredited TEPA member to this exclusive marketing opportunity!
Contact Nic Havenga on 079 568 4718 or Steve Pickstock on 072 389 8484
- 2019 MIWA approached TEPA to intervene with a compensation for labour costs
- 2019 TEPA engaged with HRS Insurance to find a solution.
- 2020 ITOO Insurance agreed to underwrite the policy.
- Based on certain criteria
- Both parties are RMI members
- Both parties respect the findings of the panel
- The cover is limited to set hours of work (flat rates – Haynes Pro)
- The cover is limited to a standard “Cost” of Labour (negotiated annually – RMI, ITOO)
- The RMI MIWA/ARA Workshop will invoice the RMI TEPA (Parts) Member for the Labour costs.
- There is a need for an immediate uptake of the policy by at least 450 members.
- Members are determined by RMI member number only.
- The cost of cover is R200 per Month to be carried by the Spares Dealer.
- Potential exists for this to be a sponsored product by suppliers as well.
Those that have failed during a warranty period, other than for:
- Fitment errors
- Poor Workmanship
- Incorrect parts supplied
- Any form of goodwill concession
- Non-adherence to the fitting instructions
- Non-compliance with warranty provisions
- Unqualified fitment staff.
- Abuse of the component parts before, during or after fitment
- Driver/user abuse of the Component Parts.
- Use during any form of Motorsport or competitive type of driving
- The Purpose of the policy is to reimburse for “Costs” incurred for Labour
- MIWA have agreed to a fixed rate of R220 per hour of labour costs
- MIWA have agreed to be bound by the Haynes Pro flat Rate Manual for the determination of hours
- The invoices issued by the workshops will be vetted for accuracy prior to settlement by ITOO.
- The Final settlememt will be subject to an “Agreement of Loss” document being agreed to
- The “AOL” will be authorized by the most senior person in the RMI TEPA (Parts) Member business.
Once a Component part is deemed to have failed by the Workshop:
The Component Part will be returned to the RMI TEPA (Parts) member source of the part.
The RMI TEPA (Parts) member will inform ITOO and TEPA of the pending claim
The TEPA (Parts) member will then refer the Claim to the RMI TEPA (Manufaturer/Importer) for evaluation
The RMI TEPA (Manufaturer/Importer) will then investigate and evaluate the Component Part/s
Should the Component Part be declared defective by the manufacturer/Importer (brand owner in South Africa)
The Manufacturer/Importer will provide a written confirmation of the defect of the part to the RMI TEPA (Parts) member
The RMI TEPA (Parts) member will submit the defective parts report directly to ITOO and to TEPA
The Labour costs will be re-imbursed by ITOO directly to the RMI TEPA (Parts) Member as the Insured
The RMI TEPA (Parts) member will then pay the RMI MIWA/ARA Workshop Invoice cost of Labour
Invoice issued by the Workshop (at agreed rates)
Should the Component Part not be declared as a Defective part!
The component parts will be returned to the RMI TEPA (Parts) Member
The RMI TEPA (Parts) Member will return the component parts to the RMI MIWA/ARA Workshop
The Claim will be declared as finalized/closed