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Mutual & Federal Obtains Court Order in SAMBRA Dispute

16 July 2007 Mutual & Federal

Following an application for an urgent court interdict Mutual & Federal has been awarded a court order which places a wide range of restrictions on the South African Motor Body Repairers' Association (SAMBRA), its executive director Richard Green and the South African Towing and Recovery Association (SATRA).

In essence the court order prohibits the three parties from placing further press advertisements, issuing warnings or threats, impounding vehicles or engaging in any unlawful or defamatory conduct against Mutual & Federal.

The action in the Witwatersrand Local Division of the High Court arose from a Sambra and Satra media campaign targeting and threatening Mutual & Federal, one of South Africas leading short-term insurers.

Keith Kennedy, Executive General Manager of Mutual & Federal, commented today (Friday, July 13 ): "We are relieved that the negative activities that we have seen in the past two weeks will be halted while we work towards a full court hearing on the substantive issues in dispute.

This High Court hearing is expected to take place next month (August).

"From the outset our review of the Motor Repairer agreement, which has unexpectedly sparked a dispute with SAMBRA and SATRA, was geared at making our business more efficient in controlling costs, improving service levels, and consequently ensuring that our policyholders receive the best possible value at affordable premiums. We will continue in our endeavours to achieve that whilst also affording our suppliers opportunities to make a fair return".

Keith Kennedy noted: "Whilst we remain aware that an element of risk still exists we remain in close contact with our contracted panel of motor repairers and tow-truck operators to ensure that our clients continue to receive the highest possible levels of service".

"In the event of any policyholder being inconvenienced by the actions of a panel-beater or tow-truck operator, we request that they contact their broker or local Mutual & Federal branch for assistance".

"Mutual & Federal would like to reassure the public that we are acting in the best interests of our policyholders, and we will continue to conduct our business with the motor body repairers and all other stakeholders in a fair, open and reputable manner."

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