The Motor Vehicle Repairers Association (MVRA) and accident management specialist Auto Indemnity are to go their separate ways, just seven months after starting an agreement.

As from November 5, Auto Indemnity will no longer have access to the MVRA’s network of 140 repairers.

The split, described as mutual, was announced by the MVRA. “Obviously this decision was not taken lightly but after much deliberation with Auto Indemnity and ourselves it was concluded that ending our professional partnership was in the best interests of all parties,” says Mike Monaghan, managing director of MVRA. Insiders suggest there were issues with repairers’ payments and the deal became unworkable.

Adrian Palmer, chief executive of Auto Indemnity, says: “We have no axe to grind with the MVRA. We made the agreement with the MVRA when we took on a large insurance contract.

“The insurance company simply decided against using the MVRA network. They are fickle sometimes.”

Auto Indemnity last year made pre-tax profits of £1.9m on a turnover of £19.7m, up 33% on 2002. It continues an arrangement with the Fleet Accident Repair Group (FARG).