As high petrol prices and inflation continue to threaten household incomes for most South Africans, Gari Dombo, MD of Alexander Forbes Insurance says, “A number of insurers are embarking on a joint initiative to support generic car parts, provided they are safe from a user perspective and can ultimately reduce the premiums that clients pay.”
He continues, “This should be a collaborative effort between all stakeholders especially the manufacturers to ensure generic parts perform in the same manner as genuine parts.” He adds, “One could draw a parallel between generic parts and generic drugs which are now generally acceptable and have reduced the overall prices of drugs.”
The key objectives of this initiative would be to ensure that:
• Consumers can save money by making use of the generic part as they are cheaper than the genuine equivalent;
• Performance wise generic parts approved by an insurer will be comparable to the original;
• Generic parts should be fitted on all vehicles that are out of warranty to save costs;
• Manufacturers of generic parts will be liable and thus consumers get the assurance that the quality is up to standard; and
• Generic parts should be more readily available to ensure that clients’ vehicles are fixed faster.
Dombo stresses the importance of all stakeholders taking part in this initiative by streamlining the inspection process for generic parts and thus helping South Africans gain access to safe and affordable generic parts.
“The use of generic parts should ultimately lead to reduced insurance premiums, in fact some manufacturers have already embarked on producing generic parts as genuine alternatives. We are seeing this not only in motor vehicle parts but glass as well,” says Dombo.
“This is critical in an environment where more than two thirds of vehicles on South African roads are not insured due to unaffordable prices,” concludes Dombo.