General Information

Passenger car and commercial vehicle sales accelerated further in November

Written on December 2nd, 2010 by jonckie@arrivealive.co.za
Categories: Car Statistics, General Information

TomTo traffic congestion

  • Total vehicle sales, reported by the National Association of Automobile Manufacturers of South Africa (NAAMSA), have increased by 2.2% m/m in November, following a 6.6% m/m rise in October. Total vehicle sales growth was up 27.4% y/y, from 18.2% y/y in October.
  • Total car sales growth (including sales from Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD)) increased to 29.6% y/y in November, up from 22.2% y/y in October.
  • Passenger car sales (NAAMSA) accelerated to 24.2% y/y in November, (but rose strongly, by 28.9% y/y, when sales from AMH and AAD are included) from 18.6% y/y in October. Passenger car sales from AMH and AAD moderated to 53.9% y/y in November after a 61.2% y/y rise was posted in October.
  • Passenger car sales (NAAMSA) declined by 2.9% m/m in November, from 4.4% m/m in October. This is in keeping with expectations, as consumers usually postpone their purchases to the New Year. However, y/y growth in passenger car sales continued to be supported by base effects.
  • Total commercial vehicle sales picked up the pace, rising by 31.1% y/y, from 15.6% y/y in October. This increase was driven by a substantial pick-up in the sales of heavy, and extra heavy commercial vehicles and buses which increased by 53.6% y/y (from 23.5% y/y in October), while medium commercial sales were up 47.9% y/y in November (from 0.6% y/y in October).
  • This rise in commercial vehicle sales is encouraging, given that sales had lagged passenger car sales due to slowing investment spending as well as weak corporate credit demand.
  • Total vehicle exports increased by 24.2% y/y (or 7.4% m/m) in November, while exports of passenger cars moderated to 13.1% y/y, after having risen by 41.4% y/y in October. The uncertainty in global growth prospects poses the main downside risk to vehicle export growth in the months ahead.
  • Vehicle sales YTD (including AMH and AAD) are up 24.3% — above the comparable period for 2009.

[Info from Standard Bank Data Release]

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Can you be arrested for flashing lights warning other motorists of speed traps?

car-blog-imagesThe charges of “defeating or obstructing the course of justice” has been discussed in several forums lately – mostly with reference to a Twitter user called @PigSpotter and tweets relating to speed enforcement and road blocks. I do not wish to discuss the @Pigspotter scenario in detail – but rather focus on one specific aspect – the flashing of lights to approaching motorists once having passed a traffic officer.

Intro and personal view

Perhaps – before discussing this – I need to expose myself and reveal why I am discussing this question,

-          I admit to having flashed lights to warn motorists of speed enforcement

-          I have been flashed at and reduced my speed after receiving such warnings

BUT

-          I have most often, having checked my speed found that I am ok – I am driving below the speed limit

-          My attention in flashing lights have never been to invite reckless driving or speeding – but merely as a warning and  reminder to another to check that he is within the limit

-          The dreaded feeling of having to pay a fine for a brief moment of inattentiveness whilst the speed has climbed to just above the limit has been the main motivation to try and rescue others from the same predicament.

-          It is often a mere gesture of courtesy and a “feel good” experience to alert others to caution …

I am a staunch “road safety advocate” –having developed the Arrive Alive road safety website for the past 7 years – and nobody can accuse me of promoting recklessness on our roads. I am very much supportive of our traffic officials – and recognize the extreme importance of effective traffic enforcement in enhancing road safety.

So why the need to discuss the flashing of lights?

In recent months there has been media reports of some provincial transport/ traffic authorities stating that motorists who are flashing lights should be arrested on the spot.

Having read law and lectured in criminal law I believe that this is not correct and it is important to share with both motorists and traffic officials the truth about our criminal law and the effect thereof on traffic enforcement on the roads.

2 Questions – Offence and Arrest

The above question requires that we answer 2 separate questions

A – Is it an offence to flash lights at motorists?

B – If this is found to be an offence – should the offender be arrested?

“The crime of defeating or obstructing the course of justice consists of unlawfully and intentionally engaging in conduct which defeats or obstructs the course or administration of justice.”

In answering question A  – whether flashing lights is an offence – I would like to refer to the Criminal Law Text Book from Snyman. Snyman reveals that there are conflicting judgements:

“If a motorist warns other motorists of the presence of a speed trap by flashing his lights , he interferes with the due administration of justice, and according to the decision in Naidoo [1777 2 SA 123 (N)] commits an attempt to defeat the course of justice. However, in S v Perera [1978 3 SA 523 (T)] in which the facts were materially the same, it was held that the person committing the act will only be guilty if he has reason to believe that the vehicle approaching him is exceeding the speed limit, or that the driver of this vehicle has the intention of exceeding the speed limit. In as far as these two decisions are irreconcilable it is submitted that the latter should be followed. This type of conduct is in effect nothing more than a warning to others to obey the law

It is important to reflect on the importance of this paragraph. If you flash lights at an oncoming vehicle and that vehicle is driving within the speed limit – such a driver is not facing any penalty nor committing any offence – and you could not be “defeating or obstructing the course of justice”

I would like to concur with Snyman that the burden will be on the prosecutor to prove that you were aware of the fact that the oncoming driver is exceeding the speed limit or is having the intention of doing so. I believe that this might well be impossible for the prosecutor.

Should an arrest be made?

If flashing of lights is an offence  –should the offender be arrested? This 2nd question needs to be considered with caution by any arresting officer. The Constitution protects the rights of every individual – and law enforcement officials should take notice not only of Criminal Procedure Act – but also of applying their arresting powers in line with the Constitution.

Arrest at roadside will amount to arrest without a warrant. Recent judgements from our courts make it clear that any arresting officer should ask the question “Are there any milder means available to ensure the appearance of this person before the courts?”

Once a motorist has been stopped, and his vehicle registration and drivers’ license can be produced to confirm his identity and even residential address, he may be summoned to appear before the courts and there are most definitely “milder means” available to ensure that the person appears before the courts.

To demand the arrest of motorists who flash lights is somewhat irresponsible and not in line with the judgements from our highest courts.

Conclusion

Speeding is a contributing factor to many fatal road accidents –and car insurance claims on our roads. I would like to urge all motorists to maintain a safe speed and a speed which is within the legal speed limits. They should do so –not to avoid traffic fines – but to allow themselves and other road users a greater opportunity for safety!!

There are many reasons why people flash their lights at oncoming traffic. These could include:

-          A reminder that it is time to turn the lights on at dark

-          A warning of a blocked road at a dangerous spot ahead

-          A vehicle accident ahead

-          Animals crossing the road or other road obstructions

-          Pedestrian activity or children next to the road presenting a danger

-          Something hanging from beneath the oncoming vehicle

-          And the presence of traffic officials ahead…

To demand the arrest of motorists flashing lights is not the right way to enhance road safety! This may only further strengthen the unfortunate belief amongst many that speed enforcement is only aimed at making money for local municipalities…

May we rather focus on road blocks and visible policing to address all the threats to road safety and create more awareness of the dangers of speeding, overloading, un-roadworthy vehicles etc!

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What does the law say about private property traffic management

did_you_know

We often receive questions pertaining to traffic enforcement within large estates and gated communities. We would like to share one of thes requests for assistance:

Question:

“We have a large site at the CSIR and a general speed limit of 40km an hour due to fauna that we have on site (buck; dassies; rabbits etc). We are wondering how to enforce these speed limits and are there regulations I could use for private property traffic management.

I would appreciate your assistance in this regards”

Answer:

All the roads within the CSIR are public roads and the traffic department must do the law enforcement.

Sec 69 creates a presumption that all roads are public roads and private ownership of the roads does not make the road private for road traffic act purposes. If a part of the public has right of access or is commonly used by the public, it is considered public.

The National Road Traffic Act Stipulates:

Presumptions regarding public road, freeway and public road in urban area

69. (1) Where in any prosecution in terms of this Act it is alleged that an
offence was committed on a public road, the road concerned shall, in the
absence of evidence to the contrary, be presumed to be a public road.

(2) Where in any prosecution in terms of this Act it is alleged that an
offence was committed on a freeway, the road concerned shall, in the absence of
evidence to the contrary, be deemed to be a freeway.

(3) Where in any prosecution in terms of this Act it is alleged that an
offence was committed on a public road in an urban area, the road concerned
shall, in the absence of evidence to the contrary, be presumed to be a public
road in an urban area.

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Insurer untertakes to include CO2 Emissions Tax in the settlement of total loss claims on new motor vehicles

car-blog co2Short-term insurer Mutual & Federal says it will include the new CO2 Emissions Tax (carbon tax) in the settlement of total loss claims on new motor vehicles, provided you have insured your vehicle for the appropriate value.

“The move means drivers won’t have to dig deep for additional funds to cover the tax , which could be upwards of R20 000 for large cars, if their vehicles are written off or stolen,” the insurer says.

Several of its products, it adds, provide for full replacement value of passenger and light commercial vehicles if they are less than a year old and have fewer than 30 000km on the clock.

“In view of the above, if their vehicles are less than 12 months old, it’s up to policyholders to ensure that the value of the tax is included in the value specified for insurance purposes,” Wayne Richards, Group Manager: Underwriting and Product Solutions says.

According to Richards, the Auto Dealers Guide, compiled by TransUnion and used by the insurance industry to establish the value of vehicles, will ultimately incorporate this tax in the reflected values of newer vehicles in much the same way that they include VAT.

“The values in the publication will soon be inclusive of tax, with no indication of what portion of the total value is made up of the new tax,” he says.

The CO2 Emissions Tax came into effect on 1 September 2010 for all passenger vehicles, and is set to kick in on 1 March 2011 for light commercial vehicles, excluding taxis, ambulances, hearses and other vehicles used for transportation of goods.

A government imposed levy on vehicles that emit CO2, has been set at R75 per gram per kilometre (/g/km) in excess of 120g/km for passenger vehicles and R100/g/km in excess of 175g/km for light commercial vehicles that emit CO2.

At present, the tax is only applicable to new vehicles. Carbon tax on a vehicle worth around R150 000 varies from about R750 to R2 000, depending on the amount of carbon emitted, while purchasers of high-end 4×4 petrol vehicles should prepare to pay as much as R25 000. “In terms of the provisions of motor insurance, the maximum amount payable for total loss events (theft or write-offs) is restricted to the amount stated in the policy schedule,” Richards says.

The onus is on the insured and brokers to ensure that the limit of indemnity of new vehicles purchased after 1 September is adequate, and that it includes provision for the CO2 Emissions Tax, accessories, and (if applicable) provision for credit shortfall. – I-Net Bridge

Advice:

It is to be expected that more insurers will follow the example of including provision for CO2 tax in policies. It will be up to every client to communicate with his insurer at the time of insuring his new vehicle and to decide whether this is a risk he might like to be covered for.

Also view:

  1. Treasury delays CO2 emissions tax on double cabs
  2. How much is carbon emissions tax going to cost vehicle owners?
  3. CO2 Vehicle Emissions Tax, Double Cabs and Car Insurance
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Do you receive quality car insurance service?

Employee Of The Month

This is the level of dedication we expect from all staff members!!

This is the level of dedication we expect from all staff members!!

In the highly competitive car insurance industry, insurers have little movement to manoeuvre in an effort to gain market share.  The fast changing insurance industry and online environment have brought together many new players to the industry – and many direct insurers have gained significant market share.

It is especially amongst these direct insurers that we find aggressive competition with clients often migrating from one direct insurer to another. The ease with which a quote is received and a policy purchased has lead to reduced brand loyalty – and poor service can easily motivate a client to move to another provider.

In this blog post we would like to take a closer look at service delivery in the car insurance industry.

Why is Service so important for Car Insurers?

Car Insurance Companies are by law “Financial Services Providers [FSP’S]” and by its nature the providers of services. Delivery of quality service has always been an essential component to the financial sustainability of these businesses – but has now become even more important.

Why do we believe service has become more important?

  • Increased competition is placing more pressure on pricing.
  • Reduced brand loyalty requires increased efforts to retain clients.
  • The online environment has delivered a greater sharing of information.
  • Online communities and social media platforms enables clients to share both positive and negative consumer experiences.

“Service excellence” the buzz word in the car insurance industry

Many big corporates are reverting to the values of service excellence. They send employees on training courses with the objective to improve the quality of their service. I was once privileged to attend such a course and I still remember one key phrase…”The client is NOT always right….the client you want to keep is always right…”

In the car insurance industry – and especially amongst direct insurers where we find a high migration of clients between insurers – it is even more important to ensure that good clients are kept on the books!

How do we measure quality service in the car insurance industry?

Most companies will rely on client feedback via surveys. They might do regular surveys themselves – but the bigger role players will appoint independent companies to conduct a survey amongst clients on their consumer experience.

Some brave companies who are confident about their levels of service delivery might even allow clients to comment, praise or criticize the service received on the company website or blog. In South Africa there are a few consumer websites as well – the most well known is “Hello Peter”  – where consumers will voice their opinion, often allowing the company/ insurer to respond.

Whether car insurers do surveys or not – clients will find a way to voice their dissatisfaction! This is not only “word of mouth” any more – but via social media platforms. We often say that the problem with bad service is not the one dissatisfied customer – but the 10 persons with whom he shares his story. With platforms such as Facebook and Twitter such a bad experience is now revealed to an audience of thousands!!

What is the best car insurance service?

It is important to consider which level of service can be regarded as quality service. Quality service is not necessarily reliant on the best possible outcome for the client – but most definitely will require a fair process with a “human touch”.

Not every claim is a legitimate claim – and the best car insurance service is not necessarily provided by the company who pays out the most claims.

We would like to submit that the following would be characteristics of quality service in the car insurance industry:

  • Accessibility

Can you easily get hold of your insurer / broker when you need them – or do you have to make endless numbers of calls and are sent from A to Z before you are assisted?

  • Transparency

Are you well informed and are the necessary procedures to follow well explained to you? Is there perhaps a company website where you can gain further clarity or gain information about your cover or claims via FAQ’s?

  • Knowledge and Professionalism

Quality service can only be provided if the insurance provider has well trained staff capable of answering the questions raised correctly. A client who finds out during the delivery of service that he has been incorrectly advised will not be a satisfied client.

  • Courtesy & Friendliness

Quality service does not need the best packing of the most beautifully branded documentation or client cards. Most often what is needed is basic human courtesy and friendly conversation. This is especially important for direct insurers where the client does not see the consultant and have the “face to face” experience. The consultant might have to do a bit extra to put the client at ease through his assistance and friendly attitude.

  • Patience & Compassion

An aspect often neglected is the ability to respond with patience. The consultant / broker needs to remind himself that the client who has lost his vehicle or who has just been in an accident might be traumatized and in severe distress. Quality service will require that such a person is treated with patience and with the necessary compassion. This might require that a bit more time be spent in conversation with the client to put his mind at ease that his best interest are cared for and his concerns will be addressed.

The above are just some of the characteristics of quality service in the car insurance industry. We will discuss this topic further in the next few weeks and can only wish that our vehicle owners receive the best possible service!!!

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Will I be fined for the late reporting of an accident?

Written on November 22nd, 2010 by jonckie@arrivealive.co.za
Categories: Car Insurance Advice, Did you know?, General Information

IntersectionQuestion:

What will be the outcome if I fail to report an accident within the legally required time? What does the law say -Will I be fined?

Answer:

A driver of a vehicle which has been involved in a road accident must report the accident within 24 Hours of its occurrence to any metropolitan, municipal or city police department, traffic department in South Africa or police station of the South African Police Service(SAPS). This must be done in terms of the National Road Traffic Act, Act 93 of 1996.

Yes, there can be a fine for reporting a crash late, but not always.

It depends on the circumstances.

If a crash is reported late at a police station, the police official must inquire into the circumstances of the late reporting. An affidavit might have to be made, hospital records produced, etc.

The circumstances will determine whether an official will issue a Written Notice to Appear in Court (with the option of paying an admission of guilt fine), or not.

The fines vary between magisterial districts.

In respect of the Johannesburg and Tshwane Metropolitan Municipal areas, AARTO is in place, and SAPS don’t issue Infringement Notices. The Joburg and Tshwane Metro Police and Gauteng Provincial Traffic Police can be called upon to assist the SAPS with the issuing of an Infringement Notice.

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Which cities and towns in South Africa have the most and least traffic congestion?

map1

In South Africa an estimated eight million vehicles travel on our roads daily and this figure grows by a staggering 20% every year*. Congestion affects millions of people every day, having serious effects on drivers’ health, businesses, society and the environment. With this in mind leading navigation company TomTom has revealed an immediate and cost-effective solution to help tackle traffic congestion.

map2“For many drivers, traffic congestion has become inevitable”, says Joost Jetten, Vice President, Sales Sub Sahara Africa. “We think it’s time to challenge conventional thinking with a working solution to reduce traffic congestion right now on a very large scale.”

TomTom has invested years in developing the very best traffic navigation system. Today TomTom can reduce journey times for individual drivers by up to 15%. TomTom drivers are connected online, so when a faster route becomes available, they are first to know. As a result, journey times can reduce for all drivers by up to 5% when 10% of the world’s drivers use TomTom’s HD Traffic navigation system.

We have earlier discussed the ability of GPS Navigation and HD Traffic to assist in reducing vehicle accidents by diverting people away from accident scenes and heavily congested traffic. This was done in a blog post titled “What is HD Traffic and how can it help me to avoid accident claims?”

In this blog post we would like to share some interesting insights on traffic congestion in South Africa.

The TomTom HD Traffic navigation system combines the world’s most accurate traffic information with dynamic route guidance technology. HD Traffic information is the most accurate in the world. It covers more road kilometers on both secondary and main roads. This information is refreshed every two minutes. Drivers can also use the TomTom Route planner online to view real time traffic before planning their journey.

Also view:

Online Route Planner

GPS and Road Safety

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121 arrested for drunk driving on Saturday night in JHB

NO_DRIVING1A hundred and twenty one people were arrested on Saturday night for drunk driving in Johannesburg, metro police said on Sunday.

“The metro police held road blocks on main roads in Randburg, Soweto and Johannesburg CBD,” said Chief Superintendent Wayne Minnaar.

“Those who were arrested were taken to alcohol evidence centres where they were breathalysed and individual print outs of their alcohol breath limits were attached to a docket.”

They were then taken to police stations and placed in police cells, he said. After about three hours they were released on bail which ranged from R800 to R1500.

Minnaar said all 121 were expected to appear in court on Monday.

The road blocks were part of the national rolling enforcement plan to stop one million cars a month, he said.

Car Insurance and Drunk Driving

We need to emphasize the following:

- Drunk driving is irresponsible and is against the law.

- Even if you are not found to be above the limit  -you still pose a threat to the lives of other road users if your ability to drive responsibly is reduced!

- Your car is only insured if the driver is operating such vehicle within the parameters of the Rules of the Road.

- Car Insurers do not need to pay an insurance claim if the driver is found to be driving drunk!

- The best way to prevent drunk driving is to use self-breathalysing to ensure that you are not over the limit and to have a designated driver take you home!!

Also view:

SAB 4

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Good intentions at the accident scene are not enough – caution is required!!

Manning Road - 19 Nov 2010 (2)The Arrive Alive website has recently received information about emergency assistance on the N4 that might well have resulted in paralysis for an accident victim. We often find that witnesses try to render assistance with the best of intentions -but their over eagerness present additional safety concerns. Sometimes, even though difficult to refrain from jumping to the assistance of the accident victim, it is best just to regulate traffic and avoid further accidents.

TracN4 suggested that we share information on our various road safety platforms – and we would like to do this on the car insurance blog as well!

When and how should we render assistance at an accident scene?

We raised this query with our Emergency Response Partner ER24 and Vanessa Jackson offered to provide some advice:

“It is human nature to want to assist someone who has been hurt, and those of us who do find the courage to stop and help at an accident scene that we come across need to know what to do, and in essence, what not to do.

Firstly, please make sure that it is indeed safe to stop, and then pull your vehicle over, preferably in front of the accident, and leave your hazard/warning lights on. Take a quick look around the scene and check whether there is any immediate danger that may present itself to you. Immediately call ER24 on 084 124 for an ambulance, trying to stay calm and explaining in as much detail as you can with regards to how many cars are involved, if there are any people hurt, and where exactly you are; giving a landmark or cross road is also very helpful.

If you feel the need to approach those that are injured, and they are still inside the vehicle, please only remove them if another life threatening situation arises, such as the vehicle catching alight. In most instances, our instincts are to get the patients out of the car, let them sit on the side of the road and get some fresh air, but it is so important to wait for emergency personnel to get onto the scene and assess the patients before they are moved. Due to the nature of car accidents, many of the victims experience back and neck pain, and moving them without proper equipment may result in serious injury. Rather try and convince them to stay seated and remain calm until the ambulance arrives on scene.

If the victims are however out of the vehicle and walking around on the scene, try and get them to sit or lie down where they are until Emergency Personnel arrive and can assess them further.

Vanessa Jackson
Medicopter Ground Support Unit
Johannesburg & Northern Region
ER24 EMS

Also view:

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South Africans underinsured for death & disability from accidents

Written on November 18th, 2010 by jonckie@arrivealive.co.za
Categories: Car Accidents, Car Insurance Advice, General Information

South-Africans-underinsured-for-death-&-disability-from-accidentsWe often insure our vehicles against the damage from motor accidents – but neglect to insure and protect our family members in the event of death and disability from the same vehicle accidents. It is most important not to focus on car insurance in isolation – but rather as part of a more comprehensive financial and needs analysis!

South Africans are significantly underinsured for death and disabilities, said the Association for Savings and Investment SA (Asisa) on Wednesday.

South Africans are “on average… underinsured by 62% for death and 60% for disability,” said Asisa deputy CEO Peter Dempsey.

In the next year about 160 000 income earners are expected to die, while about 52 000 will suffer total and permanent disability.

“This means that in addition to grappling with the loss of these income earners, more than 212 000 families will face unexpected financial hardship next year brought about by South Africa’s massive life and disability insurance gap.”

This was according to research by True South Actuaries & Consultants and the Unisa Bureau of Market Research.

Asisa said an independent study to measure the shortfall in 2007 found that South African earners were underinsured by about R10 trillion.

Dempsey said the 2010 Life and Disability Insurance Gap Study showed that South Africa’s 12.4 million income earners between the ages of 16 and 65 were underinsured by R18.4 trillion.

The death insurance gap was R7.3 trillion, and the disability insurance gap R11.1 trillion.

The insurance gap was defined as the difference between the insurance need and the actual cover.

“Given the fact that it was possible to interrogate data in much greater detail this year and factoring in the growth in earnings over the past three years since the last study was conducted, we conclude that the insurance gap has not necessarily widened,” said Dempsey.

“What this means is that consumers did not rush out and increase their levels of life and disability insurance since the last study was done in 2007.

“This is understandable, given the global financial crisis and the recession that followed. But this also means that people held on to the life and disability protection cover they had.”

Higher income earners were the most likely to be underinsured.

“Our research shows that consumers earning more than R16 700 a month will leave their families with the biggest financial shortfall when they die or become disabled.

“The higher an earner’s income bracket, the more life cover is required to maintain living standards.”

High income earners older than 55 were the only group with sufficient life cover, as they had generally saved enough money. They might also have benefited from group life cover through years of membership of an employer’s pension fund.

[Info from Fin24]

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