Brokers
Driverless car could have far-reaching consequences for insurance industry
Submitted by Michaela on Tue, 2012-07-31 14:12Image/Video:
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Google’s launch of a driverless vehicle has so far proven a success, with the vehicles having clocked up 200 000 kilometres in the US. While it may be some time before the technology reaches South Africa; if it does become commercialised it is likely to have far-reaching consequences for the insurance industry.
According to Warwick Scott-Rodger, Marketing Manager at MUA Insurance Acceptances, experts believe that due to the system’s accuracy, driverless vehicles could help reduce the number of fatalities that occur on the roads daily.“The extent of motor vehicle accidents remains a serious problem in South Africa and is most often the result of human error.
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Google’s launch of a driverless vehicle has so far proven a success, with the vehicles having clocked up 200 000 kilometres in the US. While it may be some time before the technology reaches South Africa; if it does become commercialised it is likely to have far-reaching consequences for the insurance industry.
According to Warwick Scott-Rodger, Marketing Manager at MUA Insurance Acceptances, experts believe that due to the system’s accuracy, driverless vehicles could help reduce the number of fatalities that occur on the roads daily.“The extent of motor vehicle accidents remains a serious problem in South Africa and is most often the result of human error.
Consequently, a driverless system could help to eradicate careless and negligent driving behaviour, thereby reducing the number of accidents. If this is the case, and fewer accidents occur, then the cars could also be built lighter, allowing for less fuel consumption.”
Scott-Rodger says if the risks posed by driverless vehicles do prove to be less than those posed by traditional vehicles, the insurance premium charged should also reduce. “In theory, this would make the industry even more competitive, forcing insurance companies to include additional value added services to make their respective offerings more attractive.
However, while the traditional risks posed by driver vehicles may be substantially mitigated, the reality is that it will take a long time for cars to be introduced with the new driverless system and to be able to drive the streets with absolute autonomy. Compatibility of all vehicles to enable constant cross communication with each other is the crux here as otherwise the sizeable benefits offered by such a system would soon to be obsolete”
“As a result, a major concern for any insurance company that opts to provide a reduced premium in response to the driverless system being implemented is that a sluggish take up of this technology would mean that the risks posed by other drivers on the roads would remain as rife as before.”
Scott-Rodger says even with a high take-up of driverless vehicles, the introduction of such technology would mean insurance contracts would certainly have to be revisited. “With an insurance policy being a contract between the insurer and the insured, certain terms and conditions may need to be tweaked in order to ensure that comprehensive cover is not compromised.”
“Exclusions such as driving under the influence of alcohol may no longer need to be applied. However, one of the most contentious legal issues may be that of third party claims. The fact that you are no longer driving the car, but rather the car is driving itself; can someone still be sued in his or her personal capacity? Would the owner or driver of the vehicle now assume the negligent position of the vehicle? The qualifying criteria for negligence to exist may now have to read; would the reasonable person (vehicle) have foreseen the consequence of his/her (its) actions, would the reasonable vehicle have taken the necessary steps to safeguard against this consequence and lastly did this vehicle take the necessary steps to safeguard against such a consequence?”
Scott-Rodger says the introduction of this new mode of transport would also require transport laws to be revised. “This will include legislation regarding speaking on the cell phone whilst driving, licensing of vehicles and drivers, as well as the possible impact on claims submitted against the Road Accident Fund.”
“The principle behind driverless technology is very positive and so far the technology appears to be proving a success. However, the phasing in of this type of technology will take a long time, especially in emerging markets where older cars remain on the roads for far longer,” concludes Scott-Rodger.
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New Marketing Manager joins MUA
Submitted by Michaela on Tue, 2012-07-31 14:02Image/Video:
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Warwick Scott-Rodger has been appointed the new Marketing Manager for specialist high net worth underwriter, MUA Insurance Acceptances, as of 1 May 2012.
Qualified as an Admitted Attorney, Scott-Rodger has extensive industry experience with previous roles including Commercial Broker for FNB Insurance Brokers, where he was also responsible for the short term insurance collaboration with FNB Commercial Banking in the Western Cape, as well as managed his own property business.
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Warwick Scott-Rodger has been appointed the new Marketing Manager for specialist high net worth underwriter, MUA Insurance Acceptances, as of 1 May 2012.
Qualified as an Admitted Attorney, Scott-Rodger has extensive industry experience with previous roles including Commercial Broker for FNB Insurance Brokers, where he was also responsible for the short term insurance collaboration with FNB Commercial Banking in the Western Cape, as well as managed his own property business.
Christelle Fourie, Managing Director of MUA, says the company always ensures any new candidate who is selected is the best-suited for the job, the team and the company as a whole.“Scott-Rodger is a perfect fit for all three of these critical qualifying criteria, with his strong broker experience and marketing skills.He is also very ambitious and energetic and brings a wealth of more than just being a marketer to the company.”
His extensive experience in new product developments and enhancements will also prove to be a great asset to MUA, says Fourie.
Scott-Rodger’s responsibilities will include the management, development and execution of marketing strategies to further grow MUA’s presence in the Western & Eastern Cape Region.
“I am looking forward to the intricacies of an interesting market and working alongside high-calibre colleagues within an incredibly dynamic environment,” says Scott-Rodger.
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Winter motor insurance checklist ensures safer driving
Submitted by Michaela on Tue, 2012-07-31 13:58Image/Video:
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The cold and icy weather conditions during the cooler winter months in South Africa increases the likelihood of accidents occurring. As a result, motorists are urged to ensure that their motor vehicles are prepared to handle the change in season by conducting appropriate safety checks, not only to ensure the safety of all motorists and passengers but to also mitigate the risk of an insurance claim repudiation.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says one of the most important checks motorists can make in winter involves the condition of the tyres. “A tyre tread below the legal limit of 1.6mm significantly increases the likelihood of an accident occurring, especially in wet weather, and could result in an insurance claim being rejected if the insurer determines the cause of the accident to be as a direct result of poor tyre maintenance.”
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The cold and icy weather conditions during the cooler winter months in South Africa increases the likelihood of accidents occurring. As a result, motorists are urged to ensure that their motor vehicles are prepared to handle the change in season by conducting appropriate safety checks, not only to ensure the safety of all motorists and passengers but to also mitigate the risk of an insurance claim repudiation.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says one of the most important checks motorists can make in winter involves the condition of the tyres. “A tyre tread below the legal limit of 1.6mm significantly increases the likelihood of an accident occurring, especially in wet weather, and could result in an insurance claim being rejected if the insurer determines the cause of the accident to be as a direct result of poor tyre maintenance.”
Fourie says alongside routine tyre checks, there are a number of other important checks that motorists should carry out before travelling in wet and unpredictable weather conditions.
“One of the most common causes of motor vehicle breakdowns in winter is a weak battery. Due to colder conditions, engines require more battery power to start up. By checking the strength of the battery and replacing it if necessary, motorists can avoid the inconvenience of an unplanned failure.”
She says when driving in wet, icy conditions good visibility is also paramount. “Something as simple as the replacement of worn wiper blades can drastically reduce the chances of an accident occurring. Good wiper blades should completely clear the glass with each swipe. Wiper blades that leave streaks or miss spots are worn and need to be replaced.”
Being visible to other drivers on the road is also very important during misty, foggy or rainy weather conditions so it is important to ensure all lights are in working order, says Fourie. “Your lighting system should be at peak performance during winter. Light bulbs do not just burn out, they also dim over time, making it difficult to see, and to be seen, in dark and wet conditions. Therefore, any burnt out or dim bulbs should be replaced immediately.”
“Coolant levels should also be checked in winter as colder temperatures shrink gaskets and could result in a fluid leak. The addition of an antifreeze solution to a vehicle ensures that the coolant remains in liquid form to carry out its core function of cooling the engine. Make sure the level is full and the mixture of water and antifreeze is close to 50/50.”
She says one of the most important components of a motor vehicle is its brakes. “It is a good idea to have the brakes checked by a motor mechanic for any wear and tear to ensure that the vehicle has the best chance of stopping when needed in wet or icy conditions. Motorists can conduct their own test by listening out for any metal to metal or squeaking sounds when applying the brakes. If the brakes are making these sounds, they would need to be replaced immediately.”
“By conducting the above mentioned safety checks before driving in wet and icy winter conditions, motorists better mitigate the risk of being involved in an accident and also reduce the likelihood of any insurance claims being repudiated,” concludes Fourie.
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Unlawful drivers not only face licence suspension but severe insurance consequences too
Submitted by Michaela on Tue, 2012-07-31 13:51Image/Video:
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The call from the Road Traffic Management Corporation (RTMC) to suspend drivers licences of motorists convicted of certain traffic offices - including driving under the influence of alcohol or other narcotic substances, reckless, negligent or inconsiderate driving and excessive speeding - places offenders at risk of insurance claim repudiation should they be involved in an accident while their licences is suspended.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says motor insurance cover is immediately invalidated when the driver no longer has a valid driver’s licence. “Should the motorist be caught driving with a suspended drivers licence, not only are they partaking in a criminal offence, but they are placing themselves at risk of further financial strain, in addition to the costs associated with re-testing for both their learners and driving licences.”
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The call from the Road Traffic Management Corporation (RTMC) to suspend drivers licences of motorists convicted of certain traffic offices - including driving under the influence of alcohol or other narcotic substances, reckless, negligent or inconsiderate driving and excessive speeding - places offenders at risk of insurance claim repudiation should they be involved in an accident while their licences is suspended.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says motor insurance cover is immediately invalidated when the driver no longer has a valid driver’s licence. “Should the motorist be caught driving with a suspended drivers licence, not only are they partaking in a criminal offence, but they are placing themselves at risk of further financial strain, in addition to the costs associated with re-testing for both their learners and driving licences.”
According to the RTMC, since January 2012 a staggering 5000 drivers have been arrested for various traffic offences. “The programme proposed by the RTMC is necessary step towards reducing the sheer volume of fatal accidents on South Africa’s roads each year and could ultimately benefit consumers in the future through lower insurance premiums, should the project be successful in reducing the number of motor vehicle accidents,” says Fourie.
She says a decline in motor vehicle accidents could equate to fewer insurance claims, therefore improving the risk profile of South African motorists. “There are many factors that are taken into account when calculating the premium on a motor vehicle, however, if we see fewer accidents on our roads then it is highly probable that we could see a reduction in motor insurance premiums in the future.”
“However, drivers must also be aware of the additional insurance repercussions following the end of their drivers licence suspension,” says Fourie.
“Offenders are likely to struggle to find an insurer who will take on the risk of insuring them if their drivers licence has been suspended in the past, as their risk profile will be worse than ordinary consumers. Those who are fortunate enough to find an insurance provider will most likely suffer the consequences of higher than average premiums or excess due to the increased insurance risk they present.”
Fourie says the proposed changes are part of a greater and ongoing effort by the RTMC to clamp down on road traffic offences, including the introduction of the Administrative Adjudication of Road Traffic Offences (AARTO) and a greater police presence on the roads to catch drunk and reckless drivers.
“While it may take some time for South Africans to get used to these changes, they are ultimately a positive step in combating what is a very serious problem. It is actually quite simple - motorists must learn to obey the laws of the land when they drive to avoid financial and legal repercussions,” concludes Fourie.
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Speed of car theft on the rise
Submitted by Michaela on Tue, 2012-07-31 13:31Image/Video:
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Even though the 2011 crime statistics from the South African Police Service reveal a 10% decline in motor vehicle theft over the past year, the fact remains that a staggering 64 504 cars were stolen and 10 627 were hijacked last year, which equates to approximately 176 cars being stolen and 29 cars being hijacked every day in South Africa. As a result, new preventative measures such as vehicle tracking or Microdot technology are increasingly becoming a necessity, rather than a luxury.
Utilising new technological advancements and preventative measures becomes even more critical when one considers that car thieves have also become increasingly smarter and faster in the methods they use to steal a car. In recent media interviews with car thieves, who chose to remain anonymous, they advised that it takes between one to five minutes to steal a car; and if they cannot steal it, they will hijack it.
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Even though the 2011 crime statistics from the South African Police Service reveal a 10% decline in motor vehicle theft over the past year, the fact remains that a staggering 64 504 cars were stolen and 10 627 were hijacked last year, which equates to approximately 176 cars being stolen and 29 cars being hijacked every day in South Africa. As a result, new preventative measures such as vehicle tracking or Microdot technology are increasingly becoming a necessity, rather than a luxury.
Utilising new technological advancements and preventative measures becomes even more critical when one considers that car thieves have also become increasingly smarter and faster in the methods they use to steal a car. In recent media interviews with car thieves, who chose to remain anonymous, they advised that it takes between one to five minutes to steal a car; and if they cannot steal it, they will hijack it.
One of the latest car theft trends involves thieves bringing along their own computer box, which they install on scene within a minute. These boxes enable the criminal to start the car without setting off the immobiliser. Other methods include using a device, such as an Allen key, which is then customised by having one end sharpened to a point, flattened and used to either unlock the car or start it.
Perhaps most disturbing is the fact that these stolen or hijacked vehicles are being bought for anything between R3 000 to R30 000, which in some cases, may be far less than the owner is paying on monthly instalments or even motor insurance premiums.
Unfortunately, even motor vehicle owners who have not suffered the theft of hijacking of a vehicle are feeling the consequences through increased motor insurance premiums as a result of the high rate of motor vehicle theft and hijacking in South Africa.
With motor theft becoming easier by the day, some insurance providers have begun to offer incentives to customers that incorporate preventative measures such as vehicle tracking technology and the incorporation of Microdot technology. In fact, Microdot technology has become a statutory requirement for all new vehicles registered in South Africa as of 1 September 2012 in an effort to combat the stolen vehicle parts trade.
Besides vehicle tracking technologies, there are some basic precautionary measures consumers can implement in an effort to reduce the likelihood of their car being stolen or hijacked.
Before purchasing a car, it is a good idea for potential buyers to do their homework as certain makes of cars are known to be more susceptible to theft or hijacking. If the desired car is high on the list of theft or hijacking, consumers should ask their insurance provider whether installing vehicle tracking technology as part of their motor insurance cover may result in reduced premiums or lower excess.
It is also a good idea to be aware of the typical locations for motor vehicle theft or hijacking in order to be on high alert when parking at these locations. Currently, shopping malls are the most popular venue for thieves to steal or hijack vehicles, however events that draw large crowds, such as school sports days or music concerts, have also become venues of choice.
When it comes to parking, motorists should opt to park in well lit areas and as close as possible to the entrance to their destination. Where possible, it is advisable to park the motor vehicle in line of sight of a CCTV camera which not only acts as a possible deterrent against theft, but can also assist in indentifying thieves should the car be stolen.
The basic rule is to always be aware of one’s surroundings and look out for suspicious people sitting in cars or standing nearby observing the area. If anything looks or feels wrong, it is better to leave or seek help immediately.
By promoting and incorporating the use of vehicle tracking technologies, practicing appropriate preventative measures and remaining are well informed of the latest criminal trends, consumers and the broader motor insurance industry better the chances of acting against thieves and reducing the number of cars being stolen or hijacked
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Motorists warned about car pooling insurance implications ahead of petrol price increase
Submitted by Michaela on Tue, 2012-07-31 13:24Image/Video:
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With the petrol price increasing for the fourth time in 2012 by 28 cents per litre today, to reach another record high, many motorists may consider forming a car pooling group in an effort to reduce costs associated with daily travelling.
However, they could be placing themselves at risk of a motor insurance claim repudiation if they are not aware of the insurance considerations when it comes to car pooling activities.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says if consumers receive money for their car pooling initiative some insurance companies may consider this to be business use, which could cause problems if the policy states the car is only covered for personal use.
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With the petrol price increasing for the fourth time in 2012 by 28 cents per litre today, to reach another record high, many motorists may consider forming a car pooling group in an effort to reduce costs associated with daily travelling.
However, they could be placing themselves at risk of a motor insurance claim repudiation if they are not aware of the insurance considerations when it comes to car pooling activities.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says if consumers receive money for their car pooling initiative some insurance companies may consider this to be business use, which could cause problems if the policy states the car is only covered for personal use.
“Some policies stipulate consumers are not allowed to carry fare-paying passengers or use it for trade purposes, so it is vital that consumers check with their insurance providers to see whether they need to adapt their policy accordingly.”
Fourie says passengers in a car pool may contribute to the cost of running the vehicle but there must be no element of profit or monetary gain for the owner.
“If the driver does make a profit, then they are potentially invalidating their domestic motor insurance policy because anyone who stands to make a profit from any form of transportation with their vehicle, such as a shuttle service, must officially register as a taxi operator.”
“Those who register themselves as a taxi operator will also need to comply with all the regulations that ensue.”
Fourie says while some of these rules are related to good driving practices, such as having the vehicle tested annually, some are more serious. “A taxi operator is required to hold a professional driving permit (PrDP). If a consumer is transporting someone for money and does not have this permit, in addition to their driving licence, then it is highly possible that they will not be paid out in the event of a claim.”
“Another important point for anyone participating in a car pool to note is that overloading above the passenger carrying capacity of the vehicle is a standard policy exclusion and would also most likely result in a claim being rejected.”
Fourie says if any consumer’s car pooling initiative changes from a lift to and from work into a profitable operation, there is a high risk that the insurer would repudiate an accident claim if they have not been informed of the change in circumstance.
“For anyone planning to partake in any form of car pooling initiatives it is best to consult directly with your broker to ensure you are fully covered in the event of a claim to avoid any additional financial strain,” concludes Fourie.
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Annual motor valuation may reduce insurance premiums
Submitted by Michaela on Tue, 2012-07-31 13:00Image/Video:
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Any consumers may unknowingly be paying more than they should for their motor vehicle insurance - often one of their biggest short-term insurance payments - due to a failure to assess the value of their motor vehicle when it comes time for annual motor insurance policy renewals.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says unless otherwise instructed, some insurnace companies will continue to charge the same premiums for the original value of the motor vehicle even though it is a few years older and has far more millage on the clock. “By conducting a yearly valuation of the motor vehicle before renewing the insurance policy, consumers could in fact save money on their motor insurance.”
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Any consumers may unknowingly be paying more than they should for their motor vehicle insurance - often one of their biggest short-term insurance payments - due to a failure to assess the value of their motor vehicle when it comes time for annual motor insurance policy renewals.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says unless otherwise instructed, some insurnace companies will continue to charge the same premiums for the original value of the motor vehicle even though it is a few years older and has far more millage on the clock. “By conducting a yearly valuation of the motor vehicle before renewing the insurance policy, consumers could in fact save money on their motor insurance.”
“It is a well known fact that every year the value of a vehicle depreciates. For example, the original purchase price of a 2009 model BMW 320i was around R315500, but in 2012 the value of the vehicle would have depreciated to an approximate market value of around R245900. As a result, the insured should update the value of the vehicle with their insurer as they could end up saving as much as 20% on the premiumjust three years down the line.”
Fourie says in addition to conducting yearly valuations there are other ways consumers can also reduce motor insurance premiums. “Currently, South Africa is experiencing a consumers market, which means most insurance companies and their brokers are open to negotiation. If consumers are looking for additional ways to reduce their monthly premiums, they should consider asking their insurance provider whether they can pay a higher excess for lower monthly fees.”
However, Fourie notes that any consumer who does opt to increase their excess should first speak to their broker to consider whether they will have sufficient funds to pay a higher fee if they are involved in an accident.
She says another way for consumers to possibly reduce insurance premiums is to incorporate some form of vehicle tracking technology. “Insurers often charge lower premiums for those vehicles with a tracking technology, including Microdot Technology, as the car falls into a lower risk bracket as it will be easier to recover should it be lost, stolen or hijacked. Similarly, drivers who fit alarms or immobilisers to their vehicles could also benefit from lower premiums.”
“Some insurers also offer reduced premiums for drivers who attend advanced driving courses because this improves the driving skills of the policyholder and reduces the likelihood they will be involved in an accident.”
Fourie says ensuring the motor vehicle is parked in a secure location is another useful way to reduce insurance premiums. “Vehicles stored in a locked garage with additional security measures, such as an electric gate or electric fencing, again present a lower risk.”
“Each insurer’s premium is usually dictated by the underwriters risk assessment of the insured’s particular risk bracket and while consumers cannot always change certain factors that may determine premiums - including age, gender, and driving history - there is often room for negotiation, so it is best to consult directly with a broker on how best to reduce motor insurance premiums,” concludes Fourie.
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MUA appoints new head of finance
Submitted by Michaela on Tue, 2012-07-31 12:51Image/Video:
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Specialist high net worth underwriter MUA Insurance Acceptances has appointed Dawie Loots as its new Head of Finance with immediate effect from the 1st of April 2012.
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Specialist high net worth underwriter MUA Insurance Acceptances has appointed Dawie Loots as its new Head of Finance with immediate effect from the 1st of April 2012.
Loots is a qualified Chartered Accountant and has over ten years commercial experience, having worked as the Financial Manager and Financial Controller for The Company of Wine People, a Private Banker at Investec Private Bank, and as an Assistant Audit Manager for Ernst & Young, among other roles.
Christelle Fourie, Managing Director of MUA, says Loots has extensive knowledge of the financial services industry and will prove a valuable member of the MUA team. “Loots has a great deal of international experience, having worked as an Audit Supervisor for Ernst & Young in the Netherlands and PriceWaterhouseCoopers in America so we are certain he can provide some excellent global insight to his role at MUA.”
Loots says he is excited about his new role at MUA. “This is an excellent opportunity for me to grow my skills and learn more about the High Net Worth insurance industry. I am looking forward to working with a new team in this dynamic industry and am confident that my previous work experience will add great value to the company.”
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R1m cash theft highlights importance of storing valuables in safes
Submitted by Michaela on Tue, 2012-07-31 12:46Image/Video:
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The best way to ensure that consumers’ valuable possessions – particularly collector’s items – are protected against loss, theft or damage is to advise them to store these important items in a secure and locked safe.
However, there are a number of important insurance considerations clients must be aware of when it comes to storing valuables in safes.
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The best way to ensure that consumers’ valuable possessions – particularly collector’s items – are protected against loss, theft or damage is to advise them to store these important items in a secure and locked safe.
However, there are a number of important insurance considerations clients must be aware of when it comes to storing valuables in safes.
Firstly, it is imperative that a client uses a reliable safe that is securely fixed in place in order to hinder removal. It is also essential to make sure that the safe is fire resistant so that all valuable items are protected in the event of a fire.
Secondly, brokers must make sure their clients fully understand all the terms and conditions in their insurance policies when using a safe or the claims submitted may be repudiated.
Most importantly, it is imperative to inform clients that the contents and value of the items stored in the safe must be declared at the inception of the insurance policy. If the policyholder does not inform the insurer of the contents, the policy will not cover any loss or damage.
The location as well as the durability of the safe is another major factor that policy holders need to consider when it comes to storing valuables.
Studies of robberies have revealed that during a break-in or robbery, burglars tend to head straight for the bedroom to locate any valuables and a safe, as this is the most common location for these items.
Therefore, it is advisable for clients to install the safe in a place that is least expected, for example in a cellar, under wooden floor boards, in the bathroom or in the kitchen.
Cover for items stored in a residential safe typically fall under a standard home insurance policy.
Clients must be aware that most policies stipulate that items over a certain value – for example, expensive jewellery over the value of R30 000 – must be stored in a safe if it is not being worn or used by the insured at the time.
When it comes to storing cash in a safe, some policies may state that any cash over a certain value must be stored in a locked safe. Every insurer will have different stipulations and limitations so it is crucial for every policyholder to read and understand the terms and conditions of their insurance policy.
In order for a claim to be paid out, the majority of insurance policies require that signs of forcible and or violent entry into the safe, or removal of the safe from the house, must be present. Therefore, it must be clear that the contents of the safe were taken by force and the safe was not simply left unlocked, unless the policy holder was held at gunpoint and asked to open the safe.
Some policies require that a certain category of safe is used in order for the cover to be valid. The different categories of safes are typically determined by the amount of time that is needed in order to open the safe.
As with most insurance policies, when it comes to storing valuables in safes, the best advice is to ensure that the client fully understands the requirements of the insurance policy in order to ensure that when it comes time to submit a claim the process runs smoothly.
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SPEED OF CAR THEFT ON THE RISE
Submitted by Michaela on Tue, 2012-07-31 12:05Image/Video:
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Even though the 2011 crime statistics from the South African Police Service reveal a 10% decline in motor vehicle theft over the past year, the fact remains that a staggering 64 504 cars were stolen and 10 627 were hijacked last year, which equates to approximately 176 cars being stolen and 29 cars being hijacked every day in South Africa. As a result, new preventative measures such as vehicle tracking or microdot technology are increasingly becoming a necessity, rather than a luxury.
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Even though the 2011 crime statistics from the South African Police Service reveal a 10% decline in motor vehicle theft over the past year, the fact remains that a staggering 64 504 cars were stolen and 10 627 were hijacked last year, which equates to approximately 176 cars being stolen and 29 cars being hijacked every day in South Africa. As a result, new preventative measures such as vehicle tracking or microdot technology are increasingly becoming a necessity, rather than a luxury.
Utilising new technological advancements becomes even more crucial when one considers that car thieves have also become increasingly smarter and faster in the methods they use to steal a car. In recent media interviews with car thieves, who chose to remain anonymous, they advised that it takes between one to five minutes to steal a car; and if they cannot steal it, they will hijack it.
One of the latest car theft trends involves thieves bringing along their own computer box, which they install on scene within a minute. These boxes enable the criminal to start the car without setting off the immobiliser. Other methods include using a device, such as an Allen key, which is then customised by having one end sharpened to a point, flattened and used to either unlock the car or start it.
Perhaps most disturbing to your clients would be the fact that these stolen or hijacked vehicles are being bought for anything between R3 000 to R30 000, which in some cases, may be far less than the owner is paying on monthly instalments or even motor insurance premiums.
As you are no doubt aware, even your clients who have not suffered the theft of a vehicle will feel the consequences through increased motor insurance premiums, which is unfair when you consider the fact that the client is not effectively responsible for the theft themselves. With motor theft becoming easier by the day, it is advisable for the motor insurance industry to offer incentives to clients that incorporate preventative measures such as vehicle tracking technology and have their cars marked by Microdots, as well as provide advice to clients on how best to avoid theft or hijacking.
At MUA, clients with certain makes of cars that are known to be more susceptible to theft or hijacking are required to install vehicle tracking technology as part of their cover, while other clients may receive reduced premiums and no excess if the client has a vehicle tracking unit fitted to their vehicle.
Brokers may be able to find out from their insurance partners what some of the most popular brands of cars being stolen or hijacked are, so they can advise their clients accordingly prior to buying a new vehicle. If your clients have a motor vehicle that is known to be a popular choice for car thieves it is a good idea to inform them of this and ensure they have some type of vehicle tracking technology installed.
As many vehicles are stolen for parts, we encourage the use of Microdot technology, which involves the spraying of new vehicles with thousands of 1mm diameter-sized Microdots onto a minimum of 80 different parts of the vehicle. Each Microdot contains a microscopic 17-digit laser-etched VIN and personal identification number (PIN), which allows for the vehicle to be traced back to the registered owner. The Microdots are only visible under a ultra-violet light and visible through a magnified lens. Only one dot is required to trace the owner, whose details are registered on a national database.
Advising your client on how to avoid having their motor vehicle stolen or hijacked not only builds better relations but may help prevent a claim. Inform your client of typical locations for motor vehicle theft or hijacking so they can be on high alert when parking at these locations. Currently, shopping malls are the most popular venue for thieves to steal or hijack vehicles, however events that draw large crowds, such as school sports days or music concerts, have also become venues of choice.
When it comes to parking, tell your clients to always park in well lit areas and as close as possible to the entrance to their destination. If the motor vehicle is parked in line of sight of a CCTV camera, this may also act as a possible deterrent against theft but can also assist in indentifying thieves should the car be stolen. The insured must always be aware of their surroundings and look out for suspicious people sitting in cars or standing nearby observing the area. If anything looks or feels wrong, it is better to leave or seek help immediately.
If the motor insurance industry works together to promote the use of these technologies, whilst also ensuring that clients are well informed of the latest criminal trends, we may be able to act against thieves and reduce the number of cars being stolen or hijacked.
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