Government Procurement Service
pan-government enabled framework agreement for
the provision of vehicle insurance brokerage
services for cars, car derived vans, commercial
vehicles and blue light vehicles
20 October 2008 – 19 October 2012
Guidance Notes for Public Sector Organisations
and Framework Suppliers
Commercial in confidence
This document is intended as a guide to the Government Procurement Service Framework
Agreement for vehicle insurance brokerage services. If, as a public sector organisation,
you currently have a contract/framework for vehicle insurance you should ascertain the
circumstances under which better value for money could be obtained by using the
Government Procurement Service Framework Agreements. An investment analysis and
business case may be needed in order to support a decision to move to a different
This document is restricted commercial and contains commercially confidential information
that must be used only for the purpose of official business and may be shared only with
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Document revision control
Version Author/editor Notes
1.0 David Pyle Guidance document issued 09.12.2008
Notes to PSO amended
Quotations, ordering and
invoicing updated – confirmed
2.0 David Pyle claims experience 24.06.2009
Call-off document amended
Document re branded in line
3.0 David Pyle 11.12.2009
with Buying Solutions style
Removal of HSBC and Marsh
Ltd from framework agreement
4.0 David Pyle 22.06.2011
BJIB contact details updated
Framework end date amended
Updated to Government
5.0 David Pyle 03.08.2011
Procurement Service branding
6.0 David Pyle Procurement Service email 02.12.2011
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NOTE TO PSOs
PSOs should read the document titled ‘Guidance notes to PSOs’ before reading this
document and the document titled ‘Supplier framework details’.
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Front cover 1
Document revision control 2
Note to PSOs 3
Contents page 4
Summary of Key Framework Features 5-6
Procurement Background 6–7
Benefits of Using the Framework Agreement 7
Insurance cover 7-8
Accessing the framework agreement 8-9
Terms and Conditions of Contract 9
Management Information 9
Government Procurement Service Responsibilities 10
Suppliers’ Responsibilities 10
PSOs Responsibilities 10 - 11
Contract Management 11 - 12
Marketing the Framework 12
Further Information & Contact Details 12
Appendix One: Supplier Contact Details 13
Appendix Two: Call Off Protocol 14 – 16
Appendix Three: Motor Insurance Database Template 17
Appendix Four: Frequently Asked Questions (FAQs) 18 – 22
Appendix Five: Useful Links 23 - 24
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1.1. This guidance document is intended to serve three purposes:
1.1.1. It provides information relating to the procurement process and outlines
the key features of the framework agreement
1.1.2. It sets out actions that Public Sector Organisations (“PSOs”) are required
to take in order to enter into participation agreements under the
1.1.3. It informs framework suppliers of the various processes that PSOs will
follow to obtain vehicle insurance brokerage services under the
2. Summary of Key Framework Features
2.1. This Framework:
2.1.1. Enables PSOs within the UK or Nominated Private Authorities (“NPAs”
are private organisations acting for and on behalf of a PSO for example
private fleet management companies) to purchase vehicle insurance
brokerage services by entering into participation agreements with
2.1.2. Has been let under the Public Sector Contract Regulations 2006 and the
procurement has followed the restricted procedure
2.1.3. Is for a three year period from October 2008, with an option to extend for
one further year
2.1.4. Consists of four framework suppliers, contact details can be found in
Appendix one and the full service offering is located in a separate
document entitled “Supplier Framework Details”
2.1.5. Provides for participation agreements to be entered into between a PSO
and their chosen framework supplier. Following a full analysis of all
framework offerings the PSO is able to choose which supplier is best able
to meet their requirements. The participation agreement provides the
PSO with full access to the framework agreement
2.1.6. Will be managed by Government Procurement Service who will hold
quarterly meetings to review supplier performance. PSOs will be
responsible for managing their chosen supplier on a day-to-day basis.
2.1.7. Offers both funded and conventional methods of insurance. Both
comprehensive and non-comprehensive (Third Party, Fire and/or Theft)
covers are available through conventional methodology. The funded
methodology is described further in the individual supplier guidance
The table below details each suppliers offering:
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Supplier name Conventional Funded
Brian Johnston & Co Y Y
(Insurance Brokers) Ltd
Willis Limited Y N
2.1.8 Offers the following service as standard for each level of insurance cover as
listed in 2.7:
Uninsured loss recovery
Full claims handling service
Insurance legal services
Replacement vehicle glass
Statistical analysis and management information services
Relief vehicle provision
Courtesy car provision.
2.1.9 Offers the following services as optional extras, in addition to the standard
Accident management services
Risk management services
Early termination insurance
3. Procurement Background
3.1 A fair and transparent procurement process was undertaken for the letting of
3.2 The Framework Agreements were let by NHS PASA under the Public Contracts
3.3 A Restricted Procedure OJEU Notice was issued on 3 January 2008, reference
3.4 A stakeholder group was established, including representatives from NHS
PASA, NHS Trusts, Collaborative Procurement Hubs and Strategic Health
Authorities. The stakeholder group was fully consulted and engaged
throughout the procurement process. This enabled key potential users of the
framework to input into the specification development, evaluation criteria,
supplier briefing and technical evaluation.
3.5 NHS PASA received ten expressions of interest and short-listed seven
tenderers at pre-qualification questionnaire stage. The short listed tenderers
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were issued with the Invitation to Tender (“ITT”) documentation on 5 June
3.6 A questionnaire was sent to suppliers contained within the ITT documents to be
completed, enabling them to provide their solutions and evidence in response
to each service requirement.
3.7 A comprehensive evaluation criterion was used to analyse both qualitative and
commercial responses. Weightings used in the evaluation were as follows:
Whole life costing 50%
Quality of service 49%
4. Benefits of Using the Framework Agreement
4.1 There are numerous benefits associated with using this framework agreement:
Allows PSOs to have access to competitive prices and terms
Choice of four suppliers offering a range of services
Uses a standard set of Terms and Conditions (T&Cs) - see section titled
Terms and Conditions of contract for further details
Provides flexibility through offering various methods of insurance cover
i.e. the conventional one year policy and the funded methodology
It is free to use for both customers and suppliers, resulting in optimum
value for money
Proposals are included for ‘grey fleet’ insurance cover
All suppliers have the relevant FSA approvals.
5. Insurance cover
The following methods of insurance are offered:
5.1.1 Comprehensive cover - This is a policy covering a number of types of
loss or damage. The means that, in addition to third party cover [see
Non-comprehensive Cover], the policy provides compensation to the
policyholder if the insured vehicle is destroyed or damaged by
5.1.2 Non comprehensive Cover - This is a policy covering a limited number
of types of loss or damage and will include one or more of the
5.1.3 Third party cover – This includes the minimum cover provided by the
Road Traffic Act and indemnifies the policyholder for damage caused
to other people’s property and injury that may be caused to third
parties. This can be extended to cover;
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5.1.4 Fire and/or theft cover - which additionally provides compensation to
the policyholder if the insured vehicle is destroyed or damaged by fire
5.1.5 Fire Claim - This is a claim arising from damage caused by fire and
explosion following fire.
5.1.6 Theft Claim - One arising from burglary, robbery and theft under the
Theft Act 1968 in England and Wales, and burglary, robbery,
housebreaking and larceny in Scotland and Northern Ireland.
6. Accessing the Framework Agreement
The main steps to accessing this framework agreement are listed below.
6.1 PSO Call Off Protocol
6.1.1 Call off contracts made by the PSO shall incorporate the T&Cs of the
Specification and the framework agreement.
6.1.2 The joining proforma for the framework agreement can be found in
Appendix two. This should be e-mailed (with an electronic signature)
or posted to Government Procurement Service and your chosen
supplier. (Contact details for Government Procurement Service can
be found on page 13).
6.2 Quotations, Orders and Invoicing
6.2.1 To obtain a quotation you will need to pass the following information to
your chosen broker;
Fleet claims history for the previous three years (if available). If not
available PSO to advise as to the reason(s) why
Fleet profile showing the current vehicles on fleet. Details to include
make, model and registration number of all vehicles requiring cover
Identify the number and type of ‘blue light’ vehicles on fleet
Identify the number and type of hire and reward vehicles on fleet
Identify any PSO restrictions in relation to authorised drivers for
example age limits
Confirmed claims experience (CCE). Please see document titled
‘Guidance notes to PSOs’ for further information
6.2.2 PSOs will need to quote the contract reference (Appendix one) in order to
access the framework agreements T&Cs and pricing structure.
6.2.3 Suppliers will respond to quotations within ten working days of receipt.
6.2.4 When quoting, suppliers will submit a best and final offer.
6.2.5 The chosen broker, will send an order confirmation to the PSO within 48
hours of receipt of the official order and will confirm the order details
including, but not limited to:
Framework Agreement reference number
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Description of the vehicle insurance offered
Name and address of underwriter
Length of insurance cover
Type of insurance cover.
6.2.6 The chosen supplier will send out invoices to the PSO within fifteen
working days following receipt of order confirmation and for contracts
more than one year, annually fifteen working days following PSO
agreement to the re-negotiated premium.
7. Terms and Conditions (T&Cs) of contract
7.1 The T&Cs of contract that apply to this framework are the NHS conditions of
contract for the Supply of Services, dated July 2007.
7.2 PSOs are advised to keep a hard copy of the T&Cs.
7.3 The T&Cs of contract can be viewed and downloaded via the link below.
8. Management information (MI)
8.1 All suppliers on the framework agreement are contractually obliged to provide
accurate and timely sales information based on the use of the framework
8.2 Data provided by the suppliers will cover the following:
Type of Service(s) procured
Detailed information on the service(s) procured
Specific prices charged
Which PSO has procured from the national framework agreement.
9.1 Government Procurement Service responsibilities
Government Procurement Service will be performing a key role in
managing the framework and the Framework Agreements. Government
Procurement Service will:
o Manage the process for dealing with all variations to the framework
agreements including price variations
o Manage supplier relations and performance in respect of the
framework agreements via Key Performance Indicators (KPIs)
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10. Suppliers’ responsibilities
10.1 Suppliers will:
10.1.1 Submit monthly reports to Government Procurement Service
summarising all sales under this Framework.
10.1.2 Assist Government Procurement Service in the marketing of the
10.1.3 In the case of the funded method, maintain records of all fund
transactions [credits / debits / interest payments] and provide quarterly
statistics to the PSO of all balances.
10.1.4 Issue each individual PSO with full details of all the successful and
outstanding uninsured loss recoveries on a quarterly basis.
10.1.5 Process all invoices from authorised repairers and submit a monthly
report/invoice for the amount.
10.1.6 Provide a full detailed claims history on an annual basis to the PSOs
or their representatives no later than eight working weeks prior to the
premium renewal date.
10.1.7 Provide quarterly statistics to the PSO of all claims and costs, if
10.1.8 Inform the PSO of the legal requirements of the Motor Insurance
Database (MID) and update the MID as and when required by the
PSO. Suppliers should also issue the appropriate template for
collection of MID information.
10.1.9 Submit KPIs to Government Procurement Service on a quarterly
basis, within ten working days after the last working day of the month.
10.1.10 Assist PSOs in completing the model call-off contract.
11. PSOs responsibilities
11.1 The PSO will:
Agree the claims history within one month of receipt from the supplier.
The premium will only be calculated following agreement of the claims
history details between the Supplier and PSO
Utilise the appropriate template (Appendix three) when submitting details
for the Motor Insurance Database (MID) to the supplier or insurer
The PSO will manage their own Participation Agreements with their
chosen Supplier, potentially involving review meetings (at intervals
determined by the PSO and chosen supplier).
Disclose material facts to their insurers
It is essential that every proposer or insured when seeking a new
insurance or renewing an existing policy, reveals to the insurers any
material facts or information (including any material circumstances or
change in circumstance) which might influence the insurer in deciding
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whether or not to accept the risk, what the terms should be and what
premium to charge. Failure to do so will render the insurance voidable
from inception and enable the insurers to repudiate liability. In practice,
you should notify any changes in material facts or circumstances as soon
as they arise. If you have any doubts as to what constitutes a material
fact or circumstance please contact your insurance broker
In connection with motor insurance specifically, convictions against any
driver (except minor parking offences) or accidents of which your insurers
may be unaware (e.g. in a spouse’s car) would be regarded as material.
It is recommended that a regular physical check of driving licences is
carried out together with a declaration of accident history
Complete the model call-off contract and issue to your chosen insurance
broker and Government Procurement Service.
Provide complete and accurate information and instructions in a timely
Check the policy documents to ensure that it accurately reflects the cover,
conditions, limits and other terms that are required by the PSO. Particular
attention to be paid to any policy conditions, warranties and the claims
notification provisions as failure to comply may invalidate coverage.
Notify any discrepancies to your chosen broker immediately.
Notify claims or potential circumstances that may give rise to a claim in
accordance with the insurance policy.
Notify your chosen broker as soon as possible of any changes in
circumstances that may affect the services to be provided by your chosen
broker or the cover provided under your insurance policy.
Provide settlement with cleared funds of all monies due in accordance
with the payment date as specified on the invoice.
12. Contract management
12.1 Government Procurement Service will hold quarterly meetings with each
supplier to review the operation of the framework agreement maintaining a
written record of points covered. The frequency will change once the
framework reaches maturity depending on the performance of each supplier.
12.2 Government Procurement Service will act as a liaison point on behalf of the
PSO and supplier for any issues relating to the operation of the framework
agreements. This extends to acting as the first point of contact for resolution of
any disputes between the PSO and supplier where the matter has not been
resolved under the dispute resolution process detailed in the specification.
13. Marketing the Framework
13.1 Government Procurement Service will work closely with framework suppliers
concerning their marketing activity. This is to ensure that the Government
Procurement Service marketing plans for the framework within the public sector
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are not adversely affected by direct marketing approaches by suppliers to Fleet
Managers, e.g. by cold calling.
14. Further information & contact details
14.1 Frequently asked questions (FAQs) can be found in Appendix four.
14.2 Useful links can be found in Appendix five.
14.4 Alternatively contact a member of the Government Procurement Service Fleet
Standardisation Manager - Fleet
9th Floor, The Capital, Old Hall Street, Liverpool L3 9PP
Tel: 0151 672 2164
Mob: 07767 440 960
15.1 Should you have any feedback (positive or negative) then please raise these
directly with the Government Procurement Service via the contact details
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Supplier main contact details
Name / Company Tel E-mail Contract reference
Michael Brian 01737 232 005 firstname.lastname@example.org CM/FMT/07/4898/1
Wells Johnston &
Beverley Willis 0771 2666 509 email@example.com
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Model Customer Call off Contract
Notification to Supplier
[Letter to be typed on Customer’s notepaper - or sent by email]
(1) From [insert name of Customer or Participating Authority] whose registered
office is at [insert address of Customer or Participating Authority] .
(2) To [insert name of Supplier] whose registered office is at [insert address of
Supplier] [‘the Supplier’].
VEHICLE INSURANCE BROKERAGE SERVICES AGREEMENT DATED [dd/mm/yyyy]
The [insert name of Customer or Participating Authority] has decided to exercise the
rights given to it under the Framework Agreement number CM/FMT/07/4898 made
between Government Procurement Service and yourselves on [date of Framework
Agreement]. This shall be for a period of [enter year duration [1, 2 or 3 years]].
[insert name of Customer or Participating Authority] has decided to select [insert
name of Supplier] as the only Supplier[s] from whom the [insert name of Customer or
Participating Authority] will purchase vehicle insurance brokerage services under the
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Addendum to vehicle insurance brokerage services agreement
List of categories of services [delete and add detail as appropriate]
Item Customer Requirement
Insurance cover [conventional or funded]
[fully comprehensive, third party, third party fire and
theft, RTA, fire or theft claim]
Length of cover [12, 24, 36 months]
Brokerage required [yes / no]
[yes / no]
services. [yes / no]
[yes / no]
[yes / no]
GAP cover required [yes/no]
Number of cars (owned
[enter the number of cars on fleet]
Number of commercial
[enter the number of commercial vehicles on fleet]
Number of ‘hire and [enter the number of vehicles that are used for ‘hire
reward’ vehicles and reward’]
Number of special type
[enter the number of special types of vehicles on fleet]
Number of blue light
[enter the number of blue light vehicles on fleet]
[enter details if you have a requirement for grey fleet
Grey fleet requirement
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NB copy to be sent to your chosen supplier and Government Procurement Service
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Motor insurance Database (MID) template
Name of policy holder
Vehicle on date
Vehicle off date
Foreign registration indicator
Trade plate indicator
Vehicle engine size
Number of seats
Gross vehicle weight
Class of use
Additional drivers indicated
Number of named drivers
Named drivers name
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Frequently Asked Questions (FAQs)
Part one: Accessing the Framework
Q. I would like to commence using the framework with immediate effect, what steps
am I required to take?
A. In the very first instance you must read the document titled ‘guidance notes to
PSOs’. Once you have read this document you must then familiarise yourself with
the following briefing documents – ‘guidance notes’ and ‘supplier framework
Once you have decided which supplier you wish to utilise you will need to send a
copy of the ‘call off customer’ (Appendix two) to your chosen supplier copying in
Government Procurement Service.
Q. How long will the sign-up process take?
A. From reading the documents mentioned above to placing the order we would
expect the process to take approximately 2-3 weeks. You will need to allow time to
fully evaluate the offerings, including any additional clarification you may have.
Please note framework suppliers are contractually obliged to return quotes within
ten working days following receipt of the quotation request.
Q. How long do I need to sign up to the framework agreement for?
A. Call off is not limited. It can be of any duration, although there is a minimum of one
year as long as its length does not prevent, restrict or distort competition.
This is equally true on the last day of the framework as it is on the first.
Q. How do I find out about the supplier details and prices that apply to the pan
government framework for vehicle insurance brokerage services?
A. All supplier information and pricing relating to the framework can be found in the
contract briefing documents on the transport intranet page.
The Government Procurement Service team will provide regular updates about the
ongoing development of the framework agreement via the transport intranet page.
Q. How much does it cost to access the framework agreement?
A. Access to the framework agreement is free of charge both for PSOs and suppliers.
Q. Can I deal direct with the underwriters from the vehicle insurance underwriter
framework agreement (CM/FMT/08/5053)?
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A. No. Your chosen broker will liaise with the panel of underwriters on your behalf.
Part two: Scope
Q. What type of vehicles does the framework agreement cover?
A. The framework covers all vehicles including: owned vehicles, leased vehicles, ‘blue
light’ vehicles (A&E Ambulances, fast response vehicles, police vehicles, and fire
vehicles), commercial vehicles, motor cycles and bicycles.
Q. Lease companies require comprehensive insurance cover. Does this framework
meet this requirement?
A. Yes. This framework meets all the requirements of leasing companies and offers
the same level of cover as a conventional comprehensive insurance policy.
Q. Who and what types of use does this framework cover?
A. The framework covers all authorised licensed driver, for social, domestic and
pleasure use plus business use, including carriage of goods and people where
Q. Are there provisions for grey fleet cover on this framework?
A. Yes. Please see individual supplier guidance for information regarding grey fleet
Q. Who is the framework agreement open to?
A. Both the broker and underwriter framework agreements are open to all public
sector organisations in England, Wales, Northern Ireland and Scotland.
Nominated private authorities can also access the vehicle insurance broker
Part three: Framework information
Q. Can a PSO merge vehicles from different fleets onto the same policy?
A. Yes. Vehicles can be merged onto the same policy. However, if the current policies
have different start/end dates, it would be possible to add vehicles as and when
current policies expire. Your chosen supplier will be able to offer further advice.
Q. What information do the Suppliers require to provide a quotation?
A. A fleet claims history for the previous three years (if available), a fleet profile showing
the current vehicles on the fleet, identify the number of ‘blue light’ and hire and
reward vehicles on fleet.
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For further details please read ‘guidance notes to PSO’ and section 6.2 for further
Q. What happens if a full claims history is not available (e.g. in the case of a newly
A. In the event of a full claims history being unavailable the supplier, underwriter and
the PSO will liaise to discuss and agree upon a methodology to calculate the
Q. If I am currently insured via the conventional method could I switch my policy to the
A. Yes. You can switch from one to the other. Your chosen supplier will be able to
offer further advice.
Q. Who sets the level of excess?
A. This can either be determined by the PSO or underwriter. Typical examples are
£100, £150 or £250.
There is a direct correlation between the level of the excess and the cost of the
insurance cover (i.e. the higher the excess, the lower the cost of the insurance
Q. How does a PSO arrange Framework review meetings?
A. Government Procurement Service will review the operation at a Framework level,
which will involve quarterly reviews with each Supplier. PSOs that access the
agreement will have the option of having their own reviews and this needs to be
discussed and implemented with the chosen Supplier. This also includes any
Management Information required.
Q. Are there any mileage restrictions for the insurance cover?
A. No. Insurance cover applies without any mileage restrictions.
Q. If a claim is being made, how are vehicles valued?
A. For claims purposes all vehicles built to UK Specification and without modification
will be valued using “CAP” monitor data. Values for all other vehicles including
mobile units and “blue light” vehicles to be agreed with the insurer.
Q. When using the funded method, who holds the fund?
A. The fund is administered by the broker who will place the monies into an interest
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Q. What happens to the interest made on the fund?
A. Interest made in the fund will remain the property of the PSO. Interest will be paid
into the fund on a quarterly basis unless otherwise advised by the PSO.
Q. What options are available on this framework for PSOs with small fleets?
A. For PSOs with small fleets, where their individual premiums is less than the level
required for the funding methodology then there is an option for a number of PSOs
to amalgamate their fleets to achieve sufficient levels to operate a funded
Q. Does this framework cover journeys outside the UK?
A. Yes. Suppliers will be able to provide extended cover for journeys outside the UK.
See Supplier Framework Details document for each suppliers offering.
Q. Can payment be made by Government Procurement Card?
A. Suppliers will accept payment by Government Procurement Card (GPC).
Part four: Governance
Q. Does the framework have an extension period?
A. Yes. There is the option to extend for a period of 12 months. The framework will
be extended based upon satisfactory supplier performance taking in to account
Q. I am required to demonstrate that we have followed EU Procurement Legislation,
what can you supply me to satisfy this requirement?
A. The Framework T&Cs can be found on the NHS website. Copies of the OJEU
advertisement and Framework Specification are also available upon request.
The vehicle insurance underwriter framework agreement went live 3 June 2009
(CM/FMT/08/5053) and has been let in line with the latest EU procurement rules
Q. Can I change the T&Cs or Framework specification to incorporate my own terms?
A. The Terms and Conditions cannot be changed or amended throughout the
Framework period. The Specification already incorporates a number of variables
i.e. differing payment profiles, length of insurance period (12, 24 or 36 months).
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Organisation name Website address
The Chartered Insurance Institute www.cii.co.uk
The Association of British Insurers www.abi.org.uk
The Health and Safety Executive www.hse.gov.uk
Motor Insurers Information Centre (MIIC) www.miic.org.uk
Motor Insurers Bureau (MIB) www.mib.org.uk
Motor Vehicle Repairers Association (MVRA) www.mvra.com
Vehicle Builders and Repairers Association Ltd
Royal Society for the Prevention of Accidents www.rospa.com/
Financial Services Authority www.fsa.gov.uk/
NHS PASA T&Cs utilised in this framework agreement
Brian Johnston & Co (Insurance Brokers)
Willis Ltd www.willis.com
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