The effects of the COVID-19 pandemic have changed the lives of everyone globally. Over the last couple of months, the world has endured much suffering and is now starting to adjust to this "new normal". Covid 19 has brought increases to many sectors, and this includes the insurance and motor sector. In the next few months, we may see the after math of lockdown, premium holidays, halting in operations and delayed shipments. One of the ongoing effects that insurers have endured over this time is the impact on the supply of vehicles, vehicle parts and paint globally. Paint prices alone have increased by 9% since last year. At the same time, the world is experiencing a severe shortage of semiconductors and microchips used in the production of vehicles. Furthermore, constraints in shipping and global transportation have resulted in an escalation in the cost and time to procure replacement parts. To highlight the severity of this effect, global shipping costs have increased by 170% during 2021 according to the Drewry World Container Index. As an insurer that is reliant on these factors, insurers have experienced this impact first-hand, resulting in a sharp escalation in both vehicle repair costs and the cost of total losses such as write-offs and thefts. Insurers have seen that vehicle repair costs have far outpaced inflation and are up to 9% higher in the last six months alone (resulting in an annualised rate of 18% per annum). The rate of vehicle depreciation from year to year is also lower than historically experienced due to the growing demand for second-hand cars. This is a global phenomenon and has affected vehicle traders and insurers around the world. To keep premiums truly in line with risks, some insurers are looking at special additional increases for clients who have high loss ratios exceeding 80% (over 3 years). The reason that this is being done is to try manage and keep claims and premium contributions fair between all clients under the insurer. At the same time as vehicle claims have been increasing, Insurers have also seen an unexpected rise in the frequency and value of home insurance claims from building costs to electronic replacement items. As an example, in 2021 Discovery Insure experienced 37% more hours of loadshedding than in 2020, resulting in a 23% increase in power surge claims. These global circumstances are unprecedented and far beyond what may be considered normal or allowed for in standard insurance pricing. Contact us to get a comparative and we might get you a cheaper premium than your current insurer, contact Marizka tel (011)658-1333 email: service@daberistic.com
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For urgent assistance and to prevent delayed turnaround times due to reduced number of staff between 20th December 2021 to 3rd January 2022, please contact your insurance provider on the contact numbers below.
Medical Aid 1. Discovery Health: 086 099 8877 2. Fedhealth: 0860 002 153 3. Momentum Health: 0860 11 78 59 4. Bonitas: 086 000 2108 5. BonCap Members: 0861 239 333 Hospitals in Gauteng 1. Bedford Gardens: 011 677 8500 2. Life Fourways Hospital (Fourways): 011 875 1000 3. Morningside Medi-Clinic (Sandton): 011 282 5000 4. Sunninghill Hospital: 011 806 1500 5. Garden City Hospital: 011 495 5000 6. Waterfall City Hospital (Kyalami): 011 304 6600 7. Glynnwood hospital- 011 741 5000 Life cover 1. Discovery Life: 0860 00 54 33 2. Liberty: 0860 456 789 3. Momentum Myriad: 0860 69 74 23 4. Old Mutual Greenlight: 0860 50 60 70 5. Old Mutual Self-service support centre: 0860 60 65 00 6. Sanlam: 0860 726 526 Short-term Insurance (Car & Business) 1. CIB: 0860 104 952 2. Momentum: 086 078 4767 3. Brolink: 0861 338 339 4. Santam: 0860 505 911 5. Discovery Insure: 0860 999 911 6. Echelon: 0860 200 002 / 083 789 9932 7. First Road Assist: 0860 911 326 Emergency services 1. Netcare 911: 082 911 2. ER24: 084 124 3. Ambulance: 10177 4. Police: 10111 In South Africa, having a car is a necessity which at the same time brings the risk of a motor accident. In this article we share some info on what to do after an accident, so that you are better prepared.
Here’s our guide to what to do after an accident: 1.Remain calm and put safety first. Switch on your hazards to warn other drivers. Many people often get out of the car immediately check for damages (or in some cases, argue with the other party), without first checking surroundings. This is very dangerous, particularly on a highway or major roads. 2.If you can, move any cars that may disrupt traffic – before moving take pictures of position car was and any other car involved in the accident. If you can also make marks on the road with chalk or spray paint. If car can’t be moved, call your insurer to get towing service. 3.If you feel unwell after the incident, limit your movement, and wait for paramedics to arrive on the scene. If there are pedestrians that have been injured, or if there is property damaged, it is road law in South Africa you have to remain at the scene of an accident until the police have arrived. 4.Record the following details:
7.Inform your insurance broker after the incident and provide true and accurate information, so that the claim can be processed without delay. If you would like us to do a comparative quote on your current insurance email: service@daberistic.com tel: 011 658 1333. As many South Africans are taking note of their spending habits and looking for the best ways to save money. We understand you may want to cut back on a few things, but one thing you should never cut back on is quality insurance. Cheaper insurance options could save you some cash in the short-term, but will usually end up costing more in the long run, especially if you aren’t properly covered. You can still get affordable cover without compromising on quality. Here are some savings tips to ensure you enjoy affordable car insurance, house insurance and building insurance. Get the best car insurance premiums
More affordable home insurance
Budget building insurance cover
Check in regularly on your insurance cover It’s very important to do a regular run-through of your lifestyle, profile and assets as these are the factors that determine how much you are charged every month. Things change all the time – for example, you may have installed extra security measures around your home and not told us, changed jobs, gotten married or had a child move to university. Simply by updating your profile, you may find that your premium decreases or that your risk profile has changed. Remember that a car depreciates in value every year. Ensure that the insured amount reflects the reasonable market value of your vehicle as you will only be paid the insured amount or reasonable market value (whichever is the lesser of the two). To review your current policy or get a comparative quote contact Marizka from our Short-term department, Tel: 011 658-1333, email service@daberistic.com Source: Santam
Author: Marizka Esterhuizen, Insurance Broker The main function of insurance is to put the insured into the same position as they were before a loss or accident. Santam states on their website that: “The retail value of a car (which is usually the higher value of the two) is the average price a car dealer would sell it for. In insurance terms, this means that if your car is covered for its retail value and it is written off in an accident or stolen without being recovered, the settlement amount will be based on the car’s retail value. If your car is insured for its retail value, it will be much easier to replace a damaged or stolen car with a similar make and model. The market value of a car is almost always lower than the retail value and takes into account a number of variables, including mileage, vehicle condition, service history and accident reports. If you were to sell your car privately, the market value would be the price that you could likely sell it for. Because this figure can vary from car to car, short-term insurers need to find a way to standardise the market value. The reasonable market value uses the retail value as the base and takes into account the amount of kilometres on your car’s odometer, the condition of the car as well as any extra items added to the car.” Therefore, if you insure your vehicle at market value you will not be able to replace the vehicle with a similar vehicle, leaving you in a worse position than before the loss or accident. You can use the calculator on Santam’s website to calculate the retail value of your vehicle by using the Auto Dealer Code, or your vehicles exact specifications, e.g. year, make, module etc. The Auto Dealer code was developed by TransUnion to specify vehicles. TransUnion has been gathering data over five decades and updates their data monthly to ensure that they provide accurate information in their guides. These guides are used by insurance, financing, and motor trader companies. “Can you please also explain why the Honda Jazz is insured for a less value, but the monthly insurance is higher than the Jeep Compass?”Insurance companies uses various factor that impact the rate at which the insurance premiums are calculated. These factors include, but are not limited to, the regular driver, vehicle specifications and the claims history.
Insurance premium rates are calculated by actuaries every year using data collected over the previous years. With today’s technologies and the vast well of data available, insurance companies have moved over to a client specific risk-based approach. Meaning that insurance rates are calculated per individual with vehicle insurance, insurance companies look at the regular driver, taking into account the following factors: • Age • Marital status • Gender • Occupation The vehicles specifications also play a role in calculation the rate. For example, older vehicles have been on the road longer and are therefore more prone to breakdowns, the parts are harder to find and therefore more expensive even if their retail value is lower than other vehicles. Hijacking statistics are also used, as a result vehicle like VW Polo’s that are more likely to be hijacked, have higher insurance rates. Insurance companies look at the following factors: • Year the vehicle was manufactured • Vehicle module • Vehicle make • The colour of the vehicle • Extras on the vehicle • Vehicle security • Where the vehicle is parked in the day and at night The claims history of the driver is used in calculating the rate for the premium, a higher loss ratio will result in a higher premium. • Your loss ratio, which is the losses an insurer incurs due to paid claims as a percentage of premiums earned. • Your loss ratio is calculated by dividing the claim amount by the annual premium. In conclusion, there are various factors that can result in the premium for the Honda Jazz being higher than the Jeep. To get help and advice on your car insurance, please contact 011-658-1333, Option 3, email service@daberistic.com to speak to one of our insurance brokers. Below are the different premium relief options announced by short-term insurance companies on car insurance, due to Covid-19 lockdown. It stands to reason that insurance companies should cut the premiums during this period, as people stay at home and do not drive, hence much fewer motor vehicle accidents and claims. This is good news for consumers under financial distress: Discovery Insure Discovery Insure is offering a Motor Premium Relief Benefit to all Discovery Insure personal and business insurance clients during this time. The Motor Premium Relief Benefit will apply to May Discovery Insure motor vehicle premium and will be based on how much you drive during the month of April, as follows - If the client drives less than 500 km in April, they will receive a 25% discount on their May Discovery Insure premium for that vehicle - If the client drives more than 500 km in April, they will receive a 15% discount on their May Discovery Insure premium for that vehicle Santam There is a premium-relief support for a maximum of two months. Please see below the qualifying criteria for premium-relief due to unpaid premium as a result of the lockdown (Covid-19): - On risk with Santam for minimum 3 years. (Clients under 3 years to be referred) - No unpaid premiums in the last 12 months (up to and including March 2020) - Loss ratio below 70% over 3 years for Personal lines - Loss ratio below 65% over 3 years for Commercial Lines - Three claims or less in the 3 years excluding CAT claims Momentum A premium pause option will be available during, and continue after, the lockdown period. Upon reinstatement of the premium at any point, following the pause, MSTI will not deem the period as a break in cover with MSTI, which otherwise might impact the clients’ risk profile. Pro rata premiums will be charged from that day onwards and cover will be reinstated. Here is a list of discounts on premium offered by other insurers Standard Bank 25% Outsurance 15% Miway 10% Old Mutual iwyze 7.5% This compares favourably with international peers in the US, UK and Australia. If you would like us to do a comparitive quote please contact Edmond or Rethabile email: shortterm@daberistic.com tel: (011)658-1333 Don’t walk away from your vehicle before checking it is locked in order to mitigate the chances of falling prey to car-jamming, warns Marius Steyn, Santam underwriting manager. Steyn says, according to the State of Urban Safety in South Africa Report, there has been a 58 percent increase in car-jacking since 2011. He says that remote jamming, or car-jamming, is a practice where criminals use a signal-jamming device to prevent a car’s central locking and alarm systems from being activated, leaving a vehicle vulnerable to theft and vandalism. “Car-jamming continues to be an escalating safety concern for many South Africans. Motorist often walk away from their cars while pressing their remote without ensuring that their vehicles are physically locked. Because of this behaviour, criminals are provided the opportunity to commit a crime like car-jamming,” says Steyn. Asked whether insurers quoted clients higher premiums if, when taking out cover, they indicated that they regularly parked in public parking spaces, he responded: “Currently, at Santam it does not influence the premium.” Steyn says that if motorists do fall victim to car-jamming, they should not get in a “jam” with their insurance. The following conditions usually apply to most policyholders: “In most cases, personal insurance policies covers the theft of insured property from a locked vehicle subject to the limitations and conditions of the policy. To strengthen the success of the claims process, video footage from surrounding CCTV, would support (it). If, however, it is later proved that the vehicle was, in fact, not locked, the insurer has the right to reject the claim.” He says some policies require that theft from an unattended vehicle be accompanied by forcible and violent entry or exit. “The best practice is to understand the conditions of your insurance policy. It also cannot be stressed enough that it is important to always check and double check that your car is secure and that you’ve stored your belongings away in a safe place.” According to Aon insurance, remote jamming involves the blocking of car remotes using a household remote, as both car remotes and household remotes operate on a 400-megahertz frequency and criminals effectively prevent the locking action of the car from being activated and can then have easy access to the vehicle and its contents without any forced entry. “Parking areas outside schools are being targeted, as these are particularly easy pickings for criminals, as many parents leave valuables such as handbags, wallets, iPads and laptops in their cars while they walk their children into school. Quieter shopping centres with less security are also a favourite hunting ground,” says Aon. Steyn says you should check immobiliser devices and security systems regularly. If there are faults, get the devices repaired or replaced. Store items such as sunglasses and cellphones in a glove compartment or locked boot. This reduces the temptation to steal. For any Short-Term queries, please contact Edmond and Po-lin in our Short Term department shortterm@daberistic.com tel no: (011) 658 – 1333 Written by: Jospeh Booysen Source: Personal Finance |
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