The UK’s Competition and Markets Authority is said to be reconsidering earlier proposals to enforce price caps on the cost of replacement vehicles following a collision.
According to reports, the CMA first introduced the rules in June to seek public opinion on the matter. The new regulations would put price caps on the cost of replacement vehicles paid by car insurance claimants following a non-fault accident. The CMA had also called for discussion on whether the rules should include a ban on most-favored nation clauses.
Now, however, the authority is forced to reconsider the rules after some respondents to the original proposals noted that the CMA does not actually have the power to enforce such price caps. The authority said it could drop plans for new rules altogether.
The CMA is set to close its investigation into vehicle replacement costs in two months. If it decides to drop the price cap rules, say reports, the CMA said it could push the adoption of a general term of agreement or consider revising the rules.
Full content: Post Online
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