Owners of autobody shops – particularly those in rural parts of the province – are concerned that Saskatchewan Government Insurance’s (SGI) regulations could potentially ruin their businesses.
During an autobody conference last month, SGI officials announced that they have proposed new rules that give shops a year to purchase new equipment – worth tens of thousands of dollars – or risk losing SGI accreditation. This equipment includes tools and computer software designed specifically to work on newer vehicles.
The new rules, which affect 260 autobody shops in Saskatchewan, also require the shops to pass new training requirements.
CBC News reported that many of the shops rely on their share of SGI’s 80,000 claims per year for the majority of their income.
Some rural shop owners are incensed with the planned rules, saying they cannot afford the equipment. If they cannot get new equipment, they will lose SGI licensing and thus, their businesses. Critics have commented that many of the tools the insurer has required are unnecessary, since rural shops rarely see the computerized vehicles that frequent urban repair centres.
The insurer has estimated the minimum equipment cost at $40,000, but some shops say it could cost them over $100,000.
SGI Minister Joe Hargrave has promised to listen to autobody shop owners’ concerns before the rules are enforced.
