A joint committee of insurers and credit hire companies will decide on independent assessors for credit hire rates
The independent assessors used to set fees and rates for the credit hire industry will be decided upon by a joint committee representing insurers and credit hire companies.
Though the tender list has yet to be drawn up, Insurance Times has learnt the ABI will not be involved in choosing candidates, and the work could be advertised publicly.
The process follows the announcement by the Office of Fair Trading (OFT) that pricing agreements between motor insurers and replacement vehicle providers are beneficial to consumers as long as independent assessors are used to set administration fees and hire rates.
Helphire group legal director Peter Holding said: "We are pleased that independent assessors will be appointed by credit hire companies and insurers as this makes for less likelihood of conflict in the future."
The ruling by the OFT amounts to an exemption of competition laws providing that some amendments to the agreement are made.
These include; appointing an independent assessor to determine appropriate replacement vehicle hire rates, rather than the current sub-committee of credit hire companies and insurers; and that the independent assessor should determine the fixed administration fee paid by credit hire companies that settle claims within the terms of the agreement.