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I am sure the agents can do a reset or something if it loses sync with the car but as far as I know only Merc head office can do the programming of a new key, and you would also need the laser cut code for the metal part of the key.
Reason I say this is I very recently got a new key for my w204 FL and after providing merc with a ton of certified paper work the key was ordered from Germany. The new key arrived in a security sealed package, was opened in front of me and the key worked immediately. No programming or nothing was done. Key unlocked and started the car straight out of the package.
That said it was cheaper than I thought it would be. I paid just over R2800 for a new remote and blade. Got here in two weeks.
I strongly doubt the locksmith understood you correctly, from what I gathered while doing the research on this is that a key can only be programmed once, so the locksmith would need a new blank original Mercedes key. You cant buy a second hand key and have it paired to your car(confirmed by MB Centurion). The second hand ones and even new ones you can order online is just a case, you would need to use the old internals and blade. He would also have to cut the blade using the old one as an example(which I dont think will work)
Insurance is a good idea to try. Also if you have not lost the key and it only stopped working it will be covered under maintenance agreement.
If the car is not under finance its relatively easy to sort out. I had to submit a lot of papers.
Bank letter authorizing that new key can be made.
Copy of person signing said letter's ID.
Proxy letter from bank giving that person authority to sign.
Copy of NATIS with bank stamp and certified, not by CoO but by bank.
Proof of address, certified
ID book
ID copy, certified
Still have all the emails from Merc, they are very very strict with keys. Also all the paper work gets sent to Germany so you dont get any of it back.
KEY ELECTRONIC
MA204 905 08 04/ 9999 R 2587.85
MASTER KEY MECHANICAL
MA212 760 19 06 R362.30
No labor charges as the key arrives fully working from Germany.