Claims Question on Body Shops

    Posted by MAIA on Jun 6, 2019, 12:01:00 AM


    This question was answered based upon current rules, regulations & statutes in effect on May 08, 2019

    I have an insured who has gone third party for his physical damage claim and the carrier will not accept a direction to pay from the body shop because they are not a registered repair shop in MA. I know that every repair shop is required to be registered, however this one is not. The problem is the insured owes back taxes to the DOR so he cannot be paid directly. He was never sent any list of repair shops to bring it to and just brought it to his repair shop of choice and told them it was an insurance claim so they began work. After beginning the work the other carrier told him to stop due to the issues and now the insured is going to be stuck with the bill. I am attempting to get the carrier to agree to have another appraisal done for the rest of the work at a registered repair shop but they are hesitating because work already began.

    Any advice on this?



    Irene Morrill:  I have NO clue on this.  Is the repair shop delinquent in taxes also …

    I’m sending this to Dan Foley, Esq MAIA Legal Consultant to see if he has any advice

    One would have thought when your client said it was an “insurance claim” that the garage might have said something ….

    I don’t know if a consumer complaint will do any good …if the insurance company is following legal protocol.


    Agent:  I am not aware that the repair shop is delinquent in taxes. As far as I know, they are just not a registered repair shop with the state.

    Dan Foley:  I’m really not sure if anything can be done in the case of your client. As you know the motor vehicle repair shop should have been registered as required by Mass. General Laws Chapter 100A.  So the insurance carrier is within its rights not to accept the repair work done by an unregistered repair shop.

    I wish that I could give you a better answer to  your client’s predicament.

    This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: Claims, 2019

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