MVRA chief executive Mike Monaghan has confirmed the trade body is seeking association status.

Although he said it was not essential, Monaghan felt it would bring “clarity” and show that Capita-owned MVRA is once again a trade association and not an accident management company.

“The Government likes getting involved in associations that are supposedly representative of their industry,” he said.

Monaghan would have to apply to the Government to create a trade association.

He denied rumours that he recently tried to sell the MVRA to the RMIF.

He said: “We basically create a spin-off not-for-profit company which can be made up of invited bodies.

"It is a straightforward legal application.

"Capita is happy for me to go ahead with this and realises there needs to be a representative body for the bodyshop industry.”

With regard to Capita acquiring MVRA in June last year, Monaghan said: “We have relocated all our accident management activity and claims handling into a bigger division of Capita which has 24/7 call centres, greater resources and technological application, and already provides claims management services to insurance and other blue chip companies.”

One of the principal reasons Capita acquired MVRA was to deliver an “end-to-end motor claims solution”.

The move also means MVRA can focus on members’ benefits such as support, legal and health and safety advice and helping bodyshops achieve the PAS125/Kitemark standard.

Monaghan said: “There came a point for MVRA when it would have been nearly impossible for it to compete with some of the big accident management companies.

"Now it can call on its corporate partner.

“By relocating to Bristol we have more technology and a bigger head count.

This streamlines the process and allows MVRA to continue with what it has done for 20 years and stops the conflict between the MVRA and trade bodies and accident management.”

He added: “It is a wonderful position for us because MVRA can refocus its heart back to its roots.”

Capita employs 29,000 people while the MVRA has about 1,700 members, split almost equally between bodyshops and garages.

One new aspect of MVRA is that companies can access services on a pay-as-you use basis – they no longer have to be a member.

MVRA was known as the Motor Vehicle Repairers Association until 2002 when Companies House ruled that it did not meet all the legal criteria required of a trade association.