Mutual & Federal is surprised by the threat of a "national strike" South African Motor Body Repairer

MUTUAL & Federal is surprised by the threat of a 'national strike" issued by the South African Motor Body Repairers Association (SAMBRA).  This threat which has been made public in the form of advertisements in the media is designed to disrupt or interfere with Mutual & Federal's contractual relationships with its motor body repairer contractors because of the dissatisfaction of a small number of motor body repairers who are not satisfied with the terms and conditions of Mutual & Federal's revised Autobody Repairers contract.

The threatened strike comes at the end of an eight month process by Mutual & Federal to review its Motor Body Repairer Panel in terms of the principles of good practise as recommended by the Motor Supply Transformation DTI Forum.  The process has been an open, fair and transparent one and followed extensive advertisements in the media.

The review and tendering process were designed to manage and control motor claim costs and equally importantly, service levels to ensure that its policyholders receive the best value possible at a more affordable premium.

Almost 90% of successful applicants have concluded formal written agreements with Mutual & Federal and are now placed on Mutual & Federal's preferred Motor Body Repairer Panel.

The threats to disrupt or interfere with these contractual relationships if they materialise, are designed to inconvenience Mutual & Federal's policyholders with a view to achieving fuller benefits and terms for motor body repairers which were not only not originally contracted for, but which are also to the detriment of Mutual & Federal's policyholders.  Mutual & Federal have in recent times, and on numerous occasions attempted to engage with SAMBRA and indeed all of its motor body repairer service providers to ascertain what their concerns are, if any and have expressed the willingness to engage in discussions with them.  All Mutual & Federal's attempts have been rebuffed.

Mutual & Federal is monitoring the situation carefully and will do everything possible to ensure its policyholders are not inconvenienced. 

If any policyholders have concerns following the publication of these advertisements they are urged to get in touch with their short term insurance advisors or their nearest Mutual & Federal branch.  In the event of any problems with repairs, intermediaries should contact their local Mutual & Federal branch for assistance.

Mutual & Federal's policyholders should be assured that it is taking all possible measures to avoid any inconvenience to them.