Discovery Insure has shared that in the past few months they have seen an increase in the number of queries about wear and tear. They shared this Smart Tip which provides clarity on what wear and tear is and how to mitigate against it. What is wear and tear? Wear and tear refers to the gradual damage or deterioration that happens over time because of regular use, ageing and exposure to various environmental factors. Some common examples of wear and tear
Why is wear and tear not covered? Insurance provides cover for sudden, uncertain and unforeseen events. Wear and tear occurs gradually over time, and this can be foreseen or even expected. Therefore, wear and tear is not an insurable event. With good maintenance and proper risk management, wear and tear can be minimised. Tips to reduce wear and tear
Source: Discovery Insure
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Discovery Insure’s latest Drive Trends Report reveals that fuel price hikes have implications on South Africans’ daily lives. Many consumers are spending more at the pump than they used to but getting fewer litres of fuel in total. It is no surprise then that many are taking fewer work trips per month. The data also reveals interesting findings into driving behaviour in different provinces and speeding behaviour - showing an increase in speeding incidents, especially on weekends. The Drive Trends Report, released on 30 November 2023, analysed the driving behaviour of over 240,000 drivers on Discovery Insure’s Vitality Drive programme. The data, gathered between January and October 2023, resoundingly confirms that clients’ purchasing behaviour changes when the fuel price changes. The latest data shows that when the fuel price is around R22 per litre, the average client spends around R1,950 per month. However, when the fuel price increases above R24 per litre, clients spend around R2,150 each month and get almost 3 litres less in fuel. In the current environment, this puts additional financial pressure on clients and by extension, on South Africans. “Discovery Insure is helping clients beat the increasing cost of fuel by rewarding them with up to 50% of their fuel spend back for driving well. So, when the price of fuel goes up clients can earn more in fuel rewards every month,” says Robert Attwell, CEO at Discovery Insure. Given the financial pressure many are facing, it was not surprising to see that there is a change in consumer driving behaviour. On average, clients are now taking 5 less work trips per month compared to one year ago. Provinces with denser traffic conditions have higher fuel consumption. The data also shows that clients in Gauteng, the Western Cape, KwaZulu-Natal and the Eastern Cape have an average fuel consumption that is nearly 1 litre per 100km more than that of clients in the other provinces. This is a result of worse traffic in these regions compared to other provinces. When it comes to fuel efficiency, i.e., how much fuel is consumed per kilometre driven, Limpopo drivers top the charts with an average fuel consumption of 6 litres per 100km. By comparison, if Gauteng drivers had the same fuel efficiency as Limpopo drivers, they could save almost 20% of their fuel bill every month! Western Cape drivers and women speed the least. Discovery Insure’s Vitality Drive programme has been using telematics to measure driver behaviour for more than a decade now. It rewards clients for driving well through incentives that include the most competitive cash back on fuel spend in the market. Vitality Drive clients earn points based on how well they drive. The more Vitality Drive points a client earns, the higher their Vitality Drive status, and the more rewards and benefits they get. Clients start each day with 60 points, and, using the principle of loss aversion, Discovery Insure deducts points throughout the day for poor driving behaviours such accelerating, braking and cornering harshly, as well as cell phone use and speeding. Of these driving behaviours, the Drive Trends Report reveals that speeding is the worst driving behaviour among clients, as drivers lose most of their points for driving too fast compared to other poor driving behaviours. Drivers who claim lose as much as 83% more points from speeding than those who don’t claim. The data also showed that people speed 50% more on weekends compared to weekdays suggesting that less traffic could contribute to this behaviour. People aged between 30 and 35 speed the most. “This data is powerful because it tells a story. Speeding remains stubbornly high. It is concerning to see from the data that many South Africans, particularly those in their early to mid-thirties, still tend to drive too fast on our roads,” says Attwell. Alongside the fuel price and its financial constraints implications, the report also confirms something else many of us already knew: It shows that Western Cape drivers and women, nationally, speed the least. “In fact, women lose 30% less points for speeding compared to men,” says Attwell. Most people leave for work at 6:45am, and they can optimise their ETA. Attwell adds that the Drive Trends Report shows that on weekdays, the peak driving time for the morning is 6:45 am, indicating that most people start work, in-office, between 7am and 8am. He also notes that, using Discovery’s data, South Africans can optimise their workday estimated time of arrival (ETAs) by changing their departure time. Instead of starting a trip between 7am and 8am, drivers can spend 14% less time on the road by leaving the house between 6am and 7am, and 11% if they leave after 8am. We all know that every minute stuck in traffic counts, especially during load-shedding and with the price of fuel. The Vitality Drive programme continues to help shift driving behaviours for the better through clients’ engagement, and not only does Vitality Drive help make our roads safer, but a much-needed fuel cash back benefit also helps clients’ wallets. “Discovery has paid over R1.8 billion in fuel cash back to drivers”, says Attwell. “Along with the latest Drive Trends Report findings – which give valuable insight so we can create better experiences and products for our clients – Vitality Drive provides tangible value, like easing the impact of the fuel price, and ultimately, helping to drive change.” If you would like to add Vitality Drive to your policy please contact Nigel email: service@daberistic.com tel:(011)658-1333 Source: Discovery Insure Several South African insurance companies are excluding damages related to the possible failure of Eskom’s national grid, which could result in a catastrophic event. “This decision has arisen as reinsurers have indicated they would not provide coverage in event of a total grid failure. This effectively leaves insurance companies with no option but to consider grid failure as an uninsurable risk,” says Guy Jameson, Sales Operation Consultant at GIB. Sasria has also stated that it would not be liable for any pay-outs in the event of a total grid failure, because loadshedding is not an insurable risk. Although the country has not suffered a total grid failure, insurers are seeing increasing claims following loadshedding to clients’ equipment. Loadshedding is different from a grid failure, so some insurers have not excluded claims following a power surge, even though loadshedding is not an insured peril. Companies need to start thinking about disaster management plans in the event of total grid collapse. There are warnings of possible looting and civil unrest, with the consequences of severe damage to infrastructure across the country and where Eskom would likely face difficulties in getting the grid operational due to its extensive national footprint. Although the likelihood of a total blackout is low, the consequences of such an incident could be devastating, making it worth preparing for. Although a total blackout presents several dangers, the primary threat is the time it takes to bring a system back up from that total collapse with estimates stretching into weeks rather than days. Major considerations for organisations developing blackout plans are the eventual failure of South Africa’s telecommunications networks and financial systems together with water and fuel shortages. “This scenario could see current logistics and supply chains becoming unstable, increasing the potential for fuel shortages. Generators requiring diesel could become less reliable than backup solutions such as solar-powered systems. From an IT perspective, regular data backups are always a must for any business but considering possible eventualities, they are now more important than ever,” adds Jameson. Experts are suggesting that business continuity planning for load-shedding and grid failure are very different. The first can usually be managed within the business premises, with on-site power, water and other backups which will allow the business to continue to operate efficiently for a few hours. However, in the case of a large-scale outage, the same is required but for a greatly extended period and in addition to backups for critical resources that cover tech, telecoms, water supply and logistics. GIB says initial commentary from insurers has been somewhat ambiguous in terms of what is covered and what is not. What seems to be clear is that there is a definite push to avoid any losses associated with grid failure. “This raises questions around consequential loss and whether it can be directly associated with a particular claim. If grid failure results in any other public supply being affected (for example, water), then any consequential loss might also not be covered,” he says. So, what exactly will be covered? “If a defined event takes place at your premises as a direct result of grid failure (fire, stock deterioration that has caused financial loss to the business), there will be no cover. Should this occur, you need to consider the consequences of this with your insurance advisor so that a well-considered and structured response is in place,” says Jameson. Glossary of terms: The different terminology relating to power failures can become quite confusing, so in short: Loadshedding is a controlled interruption of the electricity supply to the public, to prevent damage to the electricity grid. Grid failure occurs when there is more electricity demand on a network than available supply, which loadshedding has helped to avoid for years. When demand exceeds supply, it will cause an imbalance in the system, resulting in the grid operating at a lower frequency than what it is designed for, resulting in a total or partial interruption, interference, suspension, blackout, and/or failure of the electricity grid supply. A power surge is a sudden rapid variation of the voltage magnitude / electrical transient voltage or a power spike in any electrical system. Due to its sudden unforeseen nature, insurers invariably cover losses due to these occurrences if so, stated in their insurance schedule and mainly relating to mainly domestic, but have capped their exposures to certain limit. Source: FA News Written by: Guy Jameson, Sales Operation Consultant at GIB Imagine submitting a claim to your insurance company, only to have it rejected based on information you don’t understand. What should you do, when the insurer just does not understand your view? Well, meet the insurance ombudsman – it is his job to care about your dispute! An ombudsman is an official whose duty it is to represent the interests of the public, by investigating and addressing complaints of maladministration or a violation of rights; are usually appointed by the government or parliament; and is not supposed to be influenced by political parties or affiliations, but should be able to conduct an independent investigation into the complaint that was laid. In short, the ombudsman serves as a mediator. South Africa has the various ombudsman available to its citizens, but today we will focus on the short term and long term insurance ombudsman and its roles and responsibilities; both of which are recognised in terms of the provisons of the Financial Services Ombud Schemes Act. Every short-term insurer has agreed to abide by the decision of the Ombudsman and this can relate to any of the following personal lines of short-term insurance: motor; house owners (building insurance); householders (content insurance); cell phone; travel; disability; credit protection insurance; commercial insurance; claims disputes; etc. The Ombudsman for Long-Term Insurance has the main duty of resolving complaints through mediation, recommendation and then, as a last resort, determination (or rulings). These determinations or rulings are legally binding on the contributing insurer, but not on the complainant, who has the option to go to court if unsatisfied with the ruling. The essential characteristics of an ombudsman are important, as it determines its impartiality. The insurance ombudsman should be free from interference in the performance of its duties and it should be independent from influence. They must also produce decisions that are seen to be fair, by making decisions based on the information available and having pre-set criteria for reaching a decision. Accountability to the public is ensured by having its decisions published and made available to the public. Lastly, the ombudsman should work effectively by following informal and cost-effective procedures, supported by sufficient human, financial and operational resources. So, what procedure should be followed once you realise you’ll need the ombudsman? Well, firstly, you should have tried to resolve the matter with the company concerned, by following their internal grievance procedure. If this did not solve your problem, you should contact the Ombudsman; who will require that you submit a complaint (preferably in writing) and provide them with the necessary information such as the insurance company’s name, policy number, contact details and a factual summary of your complaint. You should submit all relevant supporting documents available, including proof of your attempted resolution with the company. The ombudsman will then start its investigation and guide you through the rest of the process. Isn’t it great to know that there is someone out there who can assist you when it seems you’ve run out of options?! Make sure you have the relevant contact details of the ombudsman you need to help you solve your problem as soon as possible! By clicking on the below you will be able to get the various Ombudsman contact details: Long Term Insurance Ombudsman Short Term Insurance Ombudsman Health Ombudsman Pension Fund Adjudicator (PFA) FAIS Ombudsman ( For Investments) If you have any queries for Short-term insurance please email service@daberistic.com Source: Hollard In an ever-evolving market that’s recently been facing tremendous challenges, Discovery Insure believe that there is an opportunity to be innovative and agile in making sure your clients’ cover remains relevant. Of course, while enabling them to enjoy even more rewards. We share with you a host of new and unique features, benefits, and product enhancements across personal and commercial lines. Here is a summary of what you can expect from Discovery Insure in the next year. Personal lines Below are some of the innovation’s you can look forward to:
Business insurance Below are some of the innovation’s you can look forward to:
If you would like us to review your Personal or Business Insurance contact William or Edmond in our Short-Term department email: service@daberistic.com Source: Discovery Insure Record-high fuel prices in South Africa Orlik (2022) states that South Africa has faced one of its toughest economic slumps, due to the COVID-19 pandemic. Lockdown restrictions had a massive impact on the economy of the country. Many consumers are still facing the financial impact and struggling to keep head above water. South Africa has also seen fuel prices hit a record-high in the first six months of 2022. Fuel prices are mainly affected by two components (BusinessTech, 2022): 1. The rand/dollar exchange rate 2. Changes to the costs of international petroleum products, primarily driven by oil prices Russia’s invasion of Ukraine has a massive impact on the fuel price increase as well. According to André Thomashausen, an emeritus professor of international law at Unisa, fuel prices could continue to rise to over R40 per litre, in the worst-case scenario (Prior, 2022). On top of this, consumers also must pay more for public transport, food and other services, all affected by the increase in fuel price. Consumer are facing even more pressure to survive in trying times. 10 tips to help your tank last longer There must surely be ways to save fuel during these tough economic times with fuel prices continuing to rise. Saving fuel is something we can all benefit from. After all, who would not want their tank of fuel to last longer? Vitality Drive helps clients save on fuel Click here to read more
If you would like to Apply for Vitality Drive or Do a comparative quote contact Ed in our Short-term department email: service@daberistic.com tel (011)658-1333 Source: Discovery Insure People sometimes have the perception that insurance claims are declined for ‘no reason’. However, an insurance policy is a contract. The insurer agrees to cover you according to how much risk they think they take on in doing so and set your premium accordingly. When the provisions aren’t met, the contract has effectively been broken and the insurer is exposed to more risk than ‘what your premium covers’ and ‘what was agreed to’. Beware: In the fine print there might be conditions that could disqualify your claim if not met. The insurance companies are completely within their rights not to cover you – because the contract is not valid anymore. The best course of action is to take care to understand the wording of your policy and to take the stipulations seriously. Story based on actual events, names have been changed to protect identity Rob had his car stolen at a shopping centre. He then contacted us and we registered the claim. The Insurance provider came back and requested the Car tracker logbook. Rob then informed us that his car tracker was cancelled as his policy lapsed due to non-payment. The insurance Company then requested details regarding the cancellation dates, proof of cancellation from tracking company, statements showing non-payment. Ultimately Rob could not provide any of these and later it was found that the tracker policy was under his brother’s name, this then caused the assessor to question “insurable interest” regarding the car. Upon further investigation there were other discrepancies found in the statement and the CCTV footage of the centre where the car was parked was requested for viewing. Ultimately the claim was rejected due to Condition of the policy not being met which is “Tracker is required to be active and working in order to have cover.” There are common pitfalls we see time and time again that result in insurance claims being repudiated, or only partially paid out because the ‘contract’ has been broken. Below are five key examples to look out for: 1.The regular driver and owner of a vehicle differ on a policy An example of where this happens, is if a parent is the policyholder of a vehicle that was purchased for their student child who is the regular driver. The parents have an insurable interest in the vehicle as there is a potential for financial loss if anything happens to it. In addition, if the child is not listed as the regular driver, the claim will likely be rejected and it may have an impact on the parents’ insurance risk profile. What can clients do to avoid this? Update your adviser on the full details of any new vehicle added to a policy, so that appropriate cover can be put in place. Do not assume that simply adding a vehicle to a policy will mean that it is covered. 2. Vehicle extras weren’t specified A case in point was when a client put in a claim for a bulbar that was stolen from his bakkie. No extras were noted in his policy and the sum insured was only sufficient to cover the bakkie itself. The claim was therefore rejected. What can clients do to avoid this? Ensure that all non-factory fitted accessories such as bull bars, sound systems and canopies are specified as additional extras, in addition to the sum insured value of your vehicle. Also keep in mind that you might need cover for mag rims on your tyres, so keep their replacement value in mind – anything you have changed or upgraded compared to the standard vehicle must be noted. 3. Security specifications weren’t adhered to All too common, this is an issue when claiming for a burglary/ theft. If your security features weren’t enabled at the time of the burglary, the claim will likely get rejected. If you tell your insurance company / broker that you have a tracker at the time of taking out the insurance policy it is your responsibility as the client to ensure that this tracking devise must have a valid contract and always be in a working order to prevent problems at claims stage, the client is responsible to ensure that the devise is active and working. If the tracker is no longer active the insurance company needs to be notified ASAP. On high value vehicle this may be a requirement in order to retain insurance cover. What can clients do to avoid this? Make sure you ask about any elements of your cover that are your responsibility. If you are covered for having a locked security gate, vehicle tracking devise, an active electric fence or burglar bars on your windows, these features need to be in place and in good working order at all times. This will keep both your property and you safe. 4. You moved but didn’t say anything to your insurer If you move and don’t notify your insurer of your new address, any claims at the new premises will be rejected. This might seem like an obvious change to make to your policy, but we do experience clients forgetting. What can clients do to avoid this? Insurers usually require that you give written notice of your new permanent, physical address before you move. This is because your new address means your risk has changed and your premium may also change. If you would like us to review your current policy contact Edmond in our Short-term department email; service@daberistic.com tel(011)658-1333 ext 105. Source: Apollotechnical.com, Business Report |
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January 2025
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