Allianz Cornhill has issued new contracts to its approved repairer network, increasing base labour rates by £1 an hour to a maximum of £30 and lifting its contribution to the Environment Protection Act charge by 50% to £3 a repair.

In a letter to repairers, Philip Brailey – Allianz Cornhill Claims Division motor damage supplier manager – says the labour rate increase is intended to reflect the current market pressures.

He adds: “It is also designed to encourage a greater degree of component repair, thus increasing repairer profitability.”

On the EPA charge, Brailey comments that this was catered for in the contract revision as Allianz Cornhill recognised the increases repairers are faced with.

Jeff Mack, of the RMI’s bodyshop and recovery division, welcomed the announcement. “In the market as it currently stands the rates being offered by Allianz Cornhill are very fair,” he says.

The new £30 maximum quoted by Allianz Cornhill is the top rate for London and the South-east and includes courtesy car provision. Direct Line, which has not moved its rates, sets its maximum at £23, without courtesy car.

The new contracts run from July 1 to June 30. In his letter, Brailey says that membership of the RMI was discussed at some length at its consultative group meeting. It concluded that membership should remain but kept under review.