Posts Tagged ‘advice’

Car Insurance Blog celebrates a year of sharing information and advice

Written on July 27th, 2010 by jonckie@arrivealive.co.za
Categories: Car Insurance Advice, General Information, Insurance Articles, road safety

CAR_BLOG

The 27th of July 2010 was the one year anniversary of the Car Insurance Blog at carinsurance.arrivealive.co.za. Even though the Arrive Alive road safety website has been online for 7 years, and we have included a section on car insurance and road safety, it is only a year since much more attention has been given to providing blog posts about car insurance.

The development of the Arrive Alive website has been made possible with the assistance of a variety of corporate sponsors, including the car insurance industry, and this has enabled us to share important two-way communication with visitors.

It became evident that there is great uncertainty pertaining to aspects of car insurance, on what to do not only to protect against vehicle accidents claims, but also how to find the correct insurance and what to do when an insurance claim is rejected.

On a personal level it was the opportune time to use my experience having read law for 5 years, lecturing in law for 5 years and working in the financial services field for 8 years – to provide advice that could benefit many of our vehicle owners.

The information on the Arrive Alive website can be found on these pages:

Car Insurance and Road Safety

Car Insurance Advice/ Education and Road Safety in South Africa

These suggestions and advice were supported during the past year with regular blog posts on car insurance. It is perhaps time to reflect on some of the interesting insights we were able to gather about the car insurance blog through the tools provided by Google Analytics.

Car Insurance Blog and Google Analytics search results

27 July 2009 – 27 July 2010

- 28,797 Visits
- 56,115 Page views
- 231 Referring sources
- 13,716 Keywords used in search engines
- Visits came from 140 countries

We are pleased to find that many visitors have been able to find the important advice they required and were searching for. We will continue to be guided by visitors and their quest for information.

Many other car insurance sites have been able to benefit from the information, often referring to the car insurance blog as source – whilst other have unfortunately plagiarised many of these posts.

This will not deter us from the ultimate objective – to provide independent and credible information, advice and suggestions about car insurance to vehicle owners.

If we are able to assist more vehicle owners to find affordable car insurance and protect themselves from vehicle accident claims through safer driving behaviour – all these efforts would be worth every minute spent on writing these blog posts!!

Share and Enjoy:

Tags: advice, Arrive Alive, car insurance, claims, education, information, road safety
Posted in Car Insurance Advice, General Information, Insurance Articles, road safety | No Comments »

Car Insurers will have to word policies in plain language

Written on May 3rd, 2010 by admin
Categories: Car Insurance Advice

Do you understand what you are reading in your car insurance policy? If you do not fully comprehend the contents of the policy – who is at fault?

It is true that the average car insurance policyholder does not have much financial skills and expertise – and he will only understand the most basic of financial concepts. Much of the terms and conditions in the policy will be foreign to him – and if not provided in his home language – might be especially difficult to understand.

This reminds me of the well known former chairman of Anglo American, Clem Sunter who revealed that he received a rather interesting comment when delivering a speech in the Free State Platteland. In this Afrikaans speaking community he was warned that English is not regarded as a 2nd language – but rather as a foreign language!

What should be done to enhance the understanding of the car insurance policy?

We have advised on the Car Insurance Blog that efforts be made to understand the terms and conditions of car insurance. With this purpose in mind we have developed a Car Insurance Glossary to assist our vehicle owners with the terms and conditions.

It is however also true that it is not only the terms and conditions that pose a problem. If these terms and conditions appear in a manner that is too “legalistic” or “technical” – the policyholder will also not understand how he is insured and what is to be expected from him.

Can the Consumer Laws protect the car insurance customer from not understanding his policy?

New laws such as the Consumer Protection Act demand that almost every document companies provide to consumers must written be in plain language. According to South Africa’s only dedicated plain language company, Simplified, South African banks and insurance companies are among the first to express interest in plain language certification for their documents.

The language to be used can now be “certified” to ensure that the consumer is protected and better understands what he is reading.

The Simplified plain language stamp is the first plain language certification system in South Africa to:

be aligned with definitions of plain language in the Consumer Protection Act, National Credit Act and Companies Act
pay careful attention to current efforts around the world to standardise plain language practice
include assessment criteria as well as processes for user testing
be awarded for free – Simplified does not charge for promoting plain language in South Africa

For consumers, the certification indicates that the organisation has complied with the spirit of the new laws.

But what is a Plain Language document?

A plain language document has:

benefited from real feedback from users of the document (through a user-testing programme)
passed various assessments that include all aspects of plain language set out in the definition, from content, to relevance, from design issues to style

According to Simplified, the assessments are far more sophisticated than old-fashioned readability tests, which the courts are unlikely to rely on as many plain language professionals are sceptical of their effectiveness. The founders of Simplified are the most experienced plain language practitioners in South Africa, with more than 12 years of international and local experience each in plain language. Gordon serves on the board of Plain Language Association International (PLAIN), the world’s largest plain language advocacy group and Burt acts as South Africa’s representative of plain language legal group, Clarity.

Concludes Gordon: “The Simplified certification is given to companies that are maximising the benefits of plain language to themselves and their customers rather than treating it as yet another compliance burden.”
[Information on Simplified has appeared on Biz-Community (7th April 2010)]

Advice to Vehicle Owners

We would like to urge all vehicle owners to be pro-active in ensuring that they understand their car insurance policies. To make an informed financial decision we would like to advise the following:

Take time to read the terms and conditions
Read the policy contract with caution to avoid the fine print and missing essential clauses
If not certain – ask questions and communicate with either the broker or call centre assistant.
If the answer is not clear – ask for confirmation is writing to confirm that your understanding is correct.
Remember – you cannot be forced into signing anything until you are satisfied that you understand everything!!

Also view:

Share and Enjoy:

Tags: advice, plain language
Posted in Car Insurance Advice | 1 Comment »

How do I protect my vehicle from fire?

Written on December 8th, 2009 by admin
Categories: General Information

Narrow Escape A friend recently asked me why there has been such an increase in vehicle fires and vehicle occupants burning to death. I don’t know if there is a significant increase and whether these incidents are merely better reported – but it is a safety threat that we need to investigate and address!

I would like to refer to a few recent reports of vehicle fire:

29 November: “Taxi, bakkie burst into flames”. Two people were killed and 15 others were critically injured when a taxi and a bakkie burst into flames after a head-on collision on the R101, north of Pretoria, the Tshwane community safety department said.
27 November 2009: A Bus and a truck collided head on in Molotto road in the Pretoria area Thursday evening at around 19h20. Details of the accident are still speculative, but it appears that the Putco Buss and a truck had collided head on and then burst into flames.
2 September 2009: Netcare 911 rushed to the scene of an accident on the N2 Twini Hill near Amanzimtoti. On arrival paramedics found that a car collided into the back of a bakkie. The occupants a male and female fortunately managed to get out of the vehicle as it burst into flames and within minutes the car was a total inferno.
4 September 2009: An electrical fire caused by a faulty window control switch has been revealed as the cause of the automobile blaze in which two-year-old Vanilla Nurse lost her life.

On the Arrive Alive website we have made available more information on the topic of Escape and Safety from Vehicle fire. It is not only important to protect the lives of driver and passengers, but also to avoid accident claims from vehicle damage caused by fire. I would like to quote from the Arrive Alive road safety website on how to prevent vehicle fires:

Vehicle maintenance and inspection is crucial to preventing vehicle fires. The following suggestion might prevent vehicle fires:

Fire Striker from Reutech

Have your vehicles inspected at least annually by a trained, professional technician.
Check for any malfunctioning parts and hanging electrical wirings. Do not leave them hanging.
Include a check of the fuel system in your regular maintenance schedule. Electrical and fuel system or problems are the major causes of car fires.
Watch for fluid leaks under vehicles, cracked or blistered hoses, or wiring that is loose, has exposed metal or has cracked insulation.
Have vehicles inspected and repaired as soon as possible if exhaust or emission control problems are suspected.
An early indication of a problem is a fuse that blows more than once. The source of the triggered fuse could be either a faulty component or a wiring problem.
Check for oil leaks and always use a funnel when adding oil. Oil spilled on a hot exhaust manifold can cause a fire.
If a filling station attendant adds oil, double check that the cap is on securely. This sounds obvious, but better to check than end up with oil all over your engine compartment at best, or an engine fire at worst.
Clean the vehicle regularly – Do not allow your trash to settle in the vehicle.
Avoid throwing cigarette butts anywhere
When driving – Be alert to changes in the way your vehicle sounds when running, or to a visible plume of exhaust coming from the tailpipe. A louder than usual exhaust tone, smoke coming from the tailpipe or a backfiring exhaust could mean problems or damage to the high-temperature exhaust and emission control system on the vehicle.
Observe your gauge frequently – Check if the temperature is rising.

Our road safety partner Reutech has made available information on a fire combating tool – the fire striker, a flame inhibitor that we should all consider having in our vehicles!

View the Arrive Alive website for more information on Safety and Escape from Vehicle Fire

Share and Enjoy:

Tags: advice, fire prevention, vehicle fire
Posted in General Information | No Comments »

Getting cheaper car insurance by focusing on your needs

Written on October 16th, 2009 by admin
Categories: Car Insurance Advice, Cheaper car insurance

We have discussed how cheaper car insurance can be acquired by the way that you drive, by shopping around and by focusing on the vehicle that you would like to insure. In this, the last blog post in this short series, we would like to focus on how attention to your specific needs could reduce your car insurance premium!

In the financial services industry the financial advisors are obliged to do a “financial needs analysis” before selling insurance products to clients. This requires them to gather from the client information about assets and liabilities, to calculate the financial needs of that client and only then to offer financial advice and products to meet those needs.

In the same way we need to approach car insurance cover. We need to establish exactly what our needs are and then align those needs to the insurance cover required at that specific point in time! Our basic need for financial protection might appear to remain the same, but our personal circumstances change and those changes could either increase or decrease our risk profile and our insurance premiums!

Most vehicle owners are aware of the decrease in value of their vehicles over time – and yet few of them communicate this to their broker or insurer. I have been called earlier this week by a broker informing me of the need to change the amount for which my vehicle is insured. It is however not only the vehicle value that changes, but also other personal circumstances such as age, distance travelled, risk area etc.

We would like to provide a few suggestions to consider – you might just be able to get cheaper car insurance by communication this with your insurer!

Only carry the minimum amount of coverage you need – always remember that the higher the cover the higher the premium.
Car insurance companies and brokers may try to sell you more coverage than you need to increase your premium.
Let go off coverage you don’t need. Cut your coverage and you will see a drop in your insurance premium.
Consider dropping collision and/or comprehensive coverage on older cars with a low market value. Such coverage often is not worth it because any claim you make probably won’t exceed the cost of the insurance and the deductible amount.
Shop around as you get older – you also might be able to pay less if you’re older than 50 or 55 and/or retired; if you’ve had no accidents or moving violations or if you have been a customer for a number of years.
Do not pay for extra and unnecessary roadside assistance – You may already have an adequate roadside plan through your life insurance, medical fund or credit card.
Peg back the number of named drivers. The more you have on your car insurance policy, the more you’ll pay.
Do you still have younger or inexperienced drivers on your insurance? – they might have left home and will only raise your car insurance premiums.
What is the average travelling distance disclosed to your insurer? If you do not drive this distance any longer, you can inform your insurer, thus resulting in a possible reduction in your premium.
Female drivers are regarded as “safer” drivers and less of a risk. Some insurers will offer cheaper car insurance premiums for female drivers – women are also better shoppers than men- remember to shop around for cheaper car insurance premiums!
Have you changed your address and notified your insurance company? If you live in a rural community with little crime and traffic congestion, your insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident.
Do you still have the same occupation as at the time when you purchased car insurance – you might now have a desk job, travel less and qualify for a cheaper insurance premium!

Do not expect your insurer to approach you with advice on reducing your car insurance premium. Be pro-active as your personal circumstances changes, review your policy thoroughly and inquire about withdrawing any unnecessary coverage. Reducing car insurance premiums do not happen by itself – you have to initiate change! Do research, ask questions and make informed decisions!

Also view:

Share and Enjoy:

Tags: advice, Car Insurance Advice, Cheaper car insurance
Posted in Car Insurance Advice, Cheaper car insurance | 1 Comment »

Getting cheaper car insurance by focusing on your car!

Written on October 15th, 2009 by admin
Categories: Car Insurance Advice, Cheaper car insurance

Cheaper-car-insurance-by-focusing-on-your-car We have previously discussed how to get cheaper car insurance by shopping effectively for insurance and by driving safely and cautiously. We also need to focus on how the car that you drive and the care that you show for that car will allow you to pay a cheaper car insurance premium!

The search for cheaper car insurance should not start once you have bought the car – it starts long before that! To understand this we need to reflect on the purpose of having car insurance. Why do we need car insurance and what does it protect us from? Very simply summarized we can say that:

Car insurance is needed to cover the risk of vehicle loss or damage.
The vehicle owner pays a car insurance premium to acquire this cover.
The insurer calculates the premium taking many factors into consideration.
The most basic of these factors are the expected costs of replacement and /or repair of the vehicle.

From the above it should be clear that our quest to find cheaper car insurance should start with the vehicle we would like to protect against loss and damage! We need to consider the nature of the vehicle to be insured and how costly it might be to replace or repair such a vehicle:

Purchasing the Vehicle

Which factors to you consider before purchasing a car? Too many vehicle owners only consider the purchase price and not the costs of keeping the car on the road!
The costs of keeping the car on the road include registration & licensing, vehicle maintenance and service, fuel and – very importantly – car insurance!
Consider purchasing a low-profile car. It’s more expensive to insure a vehicle that’s expensive to repair, popular with thieves or known for not having the greatest safety record.
You do not have to swap your sports car for a family car, but maybe compromise a bit.
You could save you a fortune not only on fuel but also on your car insurance premiums!
You can enquire about the insurance rating – Some cars are considered to be of a higher risk than others.
Before buying a car, check out its insurance group rating as car insurance premiums vary greatly between insurance groups.
In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly.
Be careful before buying an imported or exotic car – Check with your car insurance company beforehand if you opt for an imported car – this might avoid nasty financial surprises!
Get your car valuation right – Overvaluing may mean a higher premium.
Check the prices of similar types, ages and distances on the clock.
Avoid modifying your car. More power can increase the risk of an accident.
It is interesting to note that the colour of your car can also affect your insurance premium!
Insurers sometimes charge slightly higher premiums for darker colours (think black and navy blue) than for lighter cars (like white). [Some experts believe that darker colours can be more difficult to see in the dark or in bad light conditions, and are thus involved in more accidents.]

Vehicle Security

Once you have purchased the vehicle, you can save on insurance premiums by focusing on how you maintain the vehicle and provide protection against vehicle theft and other criminal activity! The following recommendations might result in cheaper insurance premiums:

Opt for safety gear in your vehicle. You can qualify for a discount on many policies if you have air bags, automatic seat belts, anti-lock brakes and daytime running lights.
Have good security systems fitted to your car. Good security may cut your premium – and keep the thieves away.
An approved alarm system, electronic central locking or other anti-theft device can give you additional savings.
Avoid flashy sound systems or modifications that might make your car more attractive to thieves – this could lead to a higher car insurance premium.
Parking your car in a secure location such as a locked garage or a secure designated off road parking spot can potentially reduce your premiums.
Cars kept in garages and supplied with alarms are less probable to be thieved, and consequently not as costly to insure.
Enquire from your insurer whether the vehicle security will provide a discount.
Also consider DataDot technology as a security option and discuss this with your insurer.

Getting cheaper car insurance requires a lot of thought and some research and planning. With the right mindset it is possible for the vehicle owner to get a cheaper car insurance premium!

Also view:

Share and Enjoy:

Tags: advice, Car Insurance Advice
Posted in Car Insurance Advice, Cheaper car insurance | No Comments »

Car insurance claims may find smooth tyres slippery!

Written on October 12th, 2009 by admin
Categories: Car Insurance Advice, Car Insurance Claims, Ombudsman, Safe Driving Tips, road safety

The past weekend I have spent quite a bit of time researching run flat tyre technology and the impact that this might have on the safety of road users. Tyre manufacturers are spending much time and funding on efforts to develop tyres that are safer and that provides “run flat capabilities”.

All these efforts are however in vain if the driver does not monitor the condition of his tyres. We can have the best tyres from the most reputable tyre manufacturers, but if those tyres have travelled too far and are worn out, they simply would not be able to provide the necessary grip on the roads!

In the event of a car insurance claim, the insurer may reject the claim if the accident was the result of operating a non-roadworthy vehicle. We have previously written about this in a blog titled “Car insurance claim can be rejected if vehicle tyres are not roadworthy!”. It is however important to recognize that such dismissal/ rejection of a car insurance claim would not be accepted merely by having a look at the appearance of the tyres –but by asking whether there is a causal connection between the smoothness of the tyres and the accident.

We would like to refer to an actual example/ decision by the Ombudsman for Short Term Insurance.

Facts:

The Insured entered a traffic light controlled four-way intersection at a speed of 50 to 60 Km/h. The green light was in his favour and just before he entered the intersection, an Isuzu white Bakkie entering the intersection from the opposite direction executed a turn to the lsuzu’s right, i.e. across the direction of travel of the Insured. The Insured applied brakes slightly and noticed that the light was still green for him. To his surprise a Mazda 323 followed the manoeuvre of the Isuzu Bakkie and a collision occurred. The Insured’s Toyota collided with the Mazda’s left rear door. The Insurer rejected liability on the ground that the two front tyres were smooth and that liability is excluded as a result of “damage to the vehicle caused by or attributable to an unroadworthy condition of the vehicle”.

Ombudsman’s response

The Ombudsman pointed out that having regard to the circumstances of the collision, the smooth tyres had no causal connection to the collision and the subsequent damage to the complainant’s vehicle. The Insurer was persuaded to meet the claim.

From the above we can see that the mere presence of smooth tyres will not repudiate the accident claim – it must be one of the factors that caused the accident. The condition and smoothness of your tyres are important for car insurance – but even more so for your safety on road!

Also view:

Share and Enjoy:

Tags: advice, claims, insurance claim, Ombudsman
Posted in Car Insurance Advice, Car Insurance Claims, Ombudsman, Safe Driving Tips, road safety | No Comments »

What do I need to know when my insurance policy is cancelled?

Written on October 9th, 2009 by admin
Categories: Car Insurance Advice

need-to-know We have earlier commented on the cancellation of a car insurance policy. We discussed the fact that an insurer is within its rights to notify an insured client that his cover is to be terminated. It is important that the client approaches this scenario cautiously, considering the impact of such cancellation!

What are the negatives of cancellation of my policy?

A cancellation may have an impact on the ability to find cover elsewhere.
The client will have to make disclosures to the new insurer pertaining to his insurance history.
The potential new insurers will ask about previous claims or losses, and also about any cancellation of previous policies.
The new proposed insurer may regard a previous cancellation as a disincentive and might assume that the client posed too great a risk to the previous insurer.

This however does not need to be seen only in negative light. There are many different insurers providing solutions to the needs of clients. How the client goes about getting the correct cover can provide not only financial benefits – but also peace of mind.

It is important that the client makes a full disclosure in complete honesty! Mention the previous cancellations “up front” and provide the new insurer with full details of your previous insurance history. A full disclosure in good faith is the first step to finding financial security!

There is constant change in the financial environment and “newer generation products” are made available. It is important to keep in mind that it is not only the insurance products that change, but also the personal circumstances and financial needs of the client. Too often do we find that a client acquires an insurance policy – and then neglects to monitor and revise this later!

The cancellation of a policy should be seen as an opportunity to make a fresh start and to have your financial and insurance products correctly aligned with your financial needs. We would like to advise that the following be kept in mind:

If your insurance policy is cancelled – make it absolutely clear from which date the cover is to be determined.
This would have to be provided to you in writing – carefully read the contents of the termination letter – and don’t fear to contact the insurer in case of uncertainty.
Remember that you will be immediately uninsured as of that date – something you cannot afford!
If an accident happens, and a claim arises during that period, the insurer who has cancelled the policy will not be obliged to meet it.
Stipulate in no uncertain terms with the new insurer the date that your new cover is to commence.
Record these instructions in writing and keep them on file.

Any client with financial assets needs to protect those assets. With all the threats to safety on the road it is important not only to protect the lives of both driver and passengers, but also your financial security from threats to your motor vehicle! Do not regard a cancellation of your car insurance policy as an unfortunate accident, but rather as the perfect opportunity to acquire the best cover at an affordable price!

Also view:

Share and Enjoy:

Tags: advice
Posted in Car Insurance Advice | No Comments »

Will car insurance cover texting and distracted driving?

Written on October 6th, 2009 by admin
Categories: Car Insurance Advice, Car Insurance Claims, Ombudsman

texting-and-distracted-driving At present we do not have reported decisions by the Ombudsman on this topic. There is however enough information to warn that a car insurance claim resulting from an accident caused by texting and driving could be rejected!

We would like to place ourselves in the position of the Ombudsman and consider how such a scenario would be judged. The best starting point would be to ask what the law says about cellular phones and driving…
We would like to refer to the Road Traffic Act and the “Prohibition on use of communication devices while driving”

1) No person shall drive a vehicle on a public road -

(a) while holding a cellular or mobile telephone or any other communication device in one or both hands or with any other part of the body;

(b) while using or operating a cellular or mobile telephone or other communication device unless such a cellular or mobile telephone or other communication device is affixed to the vehicle or is part of the fixture in the vehicle and remains so affixed while being used or operated, or is specially adapted or designed to be affixed to the person of the driver as headgear, and is so used, to enable such driver to use or operate such telephone or communication device without holding it in the manner contemplated in paragraph (a), and remains so affixed while being used or operated.

It is important to keep in mind that “using or operating” is not restricted to speaking on the cellular phone but could include reading or typing a text message, reading e-mail, surfing the Web, looking at video on your smart phone, looking up a number. Anything you do that requires manipulating a keyboard can cause a distraction and could be interpreted as such under this prohibition!

We should also consider reported decisions in other matters. The Ombudsman has agreed with insurers in the past and rejected claims for accident damage caused by drunk driving and the driving of non-roadworthy vehicles. It is only reasonable that the vehicle owner should only be covered when operating his vehicle within the Rules of the Road.

How big is the threat of texting as a driver distraction? I would like to quote just a few points made on the Arrive Alive website:

According to the National Roads and Motorists Association, text messaging drivers spent up to 400 percent more time with their eyes on the phone instead of on the road.
Texting reduces reaction times of drivers.
The reaction times of texting driver deteriorated by 35 per cent, much worse than those who drank alcohol at the legal limit, who were 12 per cent slower, or those who had taken cannabis, who were 21 per cent slower.
When texting, you tend to wander across the lane.
Research found that drivers who sent or read text messages were more prone to drift out of their lane, with steering control by texting drivers 91 per cent poorer than that of drivers devoting their full concentration to the road.
The Transport Research Laboratory concluded that text messages took on average 63 seconds to compose while the phone owner is driving- compared with 22 seconds when sent from a desk.

Research has found that driving while texting is a bigger danger than impaired driving! We can expect that more insurers will refer in policy documentation the exclusion of damage caused by texting and driving!

If there is evidence that the driver caused the accident while texting behind the wheel, we believe that any car insurance claim emanating from such accidents would be justifiably rejected!

Also view:

Share and Enjoy:

Tags: advice, Ombudsman
Posted in Car Insurance Advice, Car Insurance Claims, Ombudsman | No Comments »

Car insurer must know the risk area where you are driving.

Written on September 30th, 2009 by admin
Categories: Car Insurance Advice, Car Insurance Claims, Ombudsman

Risky driving!

A car insurer has to take several factors into account when calculating the car insurance premium payable. These factors include driver factors, vehicle factors as well as the area where the owner intends to drive such vehicle most of the time. The car insurer will seek to determine how these factors will influence the risk to vehicle loss or vehicle damage.

Why do we say that the area is important? Insurers can use accident data and crime statistics to determine what the risks are to the specific vehicle to be insured. In the same way that property prices differ from area to area, the risks to vehicle damage or loss may differ. Accident data will reveal that many more accidents occur in the heavily vehicle populated cities than in towns and rural areas. Crime statistics will also confirm that the risks of hijacking, vehicle theft and smash-and –gab are much greater in our cities than in smaller towns! It is only reasonable to expect that the greater the risk of vehicle damage/ loss, the higher the insurance premium payable.

But why is this important for the insured client? Apart from determining the premium payable, the client will have to ensure that he abides by the stipulation in his policy contract to disclose any changes in the risk status. This means that in the event of a change in regular driver of the vehicle or risk area, the insurer has to be informed and a new premium calculated. Failure to do so will constitute a serious breach of contract and the insurer could reject his claim!

I would like to provide an example from a decision by the Ombudsman:

Facts:

The Insured owned five vehicles, all of which were insured and it was noted on the information given that the risk area was Durban, where the Insured resided. A Toyota Conquest was regularly used by the Insured’s daughter, and in April 2005 was taken with her when she moved to Johannesburg to attend university. The Insured did not advise the Insurer of the change in risk profile, and when a claim was lodged five months later, it was rejected. The Insured was adamant that there was no obligation on him to have advised the change in risk area as this requirement was never brought to his attention at any stage.

Ombudsman’s Response

The Ombudsman (subject to critical comment from the Insured), advised the Insured that the Insurer’s decision was correct and gave the relevant explanation in support of the rejection of the claim.

[Source: Ombudsman's Briefcase Issue No. 02/2006]

This Decision should raise alarm bells with many insured vehicle owners. This is a scenario that often plays out with our young drivers. Parents buy a vehicle for a child on the platteland or small town, insures the vehicle correctly in the name of the young driver and then allows the child to take the vehicle to the city where the child studies or works for 3 years or more.

Failure to disclose to and notify the insurer of such a change in the risk area is a breach of contract and will entitle the insurer to reject a claim by the insured client. We are not referring to short term changes such as business trips, vacation etc, but rather a prolonged change in risk area where the vehicle is to be driven.

We need to emphasize the importance of communication between the client and his insurer. Car insurance should not be seen as a once-off event – but rather as a continuous relationship between parties which needs adjustment and fine-tuning as circumstances change!!

Share and Enjoy:

Tags: advice, Cheaper car insurance, choosing car insurance, crime statistics, insurance claim, Ombudsman
Posted in Car Insurance Advice, Car Insurance Claims, Ombudsman | No Comments »

This is why car insurance is a necessity in South Africa!

Written on September 29th, 2009 by admin
Categories: Car Insurance Advice, Car Statistics, road safety

why-need-car-insurance In most developed countries it is law to have your car insured. In South Africa this is not a requirement – and it is with a sense of fear that you ask a friend who has been in an accident “Do you have car insurance?” I have recently been called to assist a friend at an accident scene – and neither he nor the other party were insured!

I have come across some interesting international data on car insurance and I would like to share a few of these facts:

According to 11News, in the state of Texas it is estimated that 15 percent of drivers are uninsured.
A suburb of Bradford in the UK has been named as the ‘uninsured driving capital of Britain’ with nearly half the motorists there driving illegally without cover.
It appears that the number of uninsured drivers have soared as a result of the recession, with vehicle owners trying to cut expenses and seeing insurance as “a bit of a luxury”.
Vehicle owners are cutting corners on motoring costs by failing to renew their car insurance.
Regionally, London has 1 in 8 cars (13 per cent) in the capital flagged as being driven illegally because they were uninsured.
In the UK over 232,000 people were convicted for driving uninsured last year – one conviction every three minutes.
Three people every hour are injured and three people every week are killed by uninsured drivers across the UK.

From 2011 the UK Government will be tightening up car insurance rules by introducing so-called ‘continuous insurance enforcement’, which means that cars must be continuously insured even if they aren’t being used. Traffic Authorities are using automatic number plate recognition technology to identify uninsured drivers. If pulled over without car insurance, the owner risk having the car confiscated, is likely to be crushed and the owner will be prosecuted.

In South Africa it should be so much more important to have your vehicle insured. Industry experts however believe that less than 30 percent of the vehicles on South African roads are insured! Car insurance should not be a luxury, or something forced upon the vehicle owner by legislation – but should be a necessity! How many reasons do you need to convince you of the importance of car insurance?

The Arrive Alive website has information on the death toll on our roads and the number of fatal accidents in a section on Accident Statistics. These are only the data on “fatal accidents” and there are many more accidents with damage to only the vehicle!

Fatal Crashes in South Africa

We have also recently discussed on this Blog the recently released Crime Statistics for 2009. View this section to find statistics on vehicle theft, hijackings, smash-and –grab etc.

vehicle related crime in south africa

These numbers should provide more than enough motivation to change the mindset of vehicle owners from “an unfortunate expense” to “a matter of urgency and a necessity before going on the road”!

We should perhaps also consider another important “downside” to not having car insurance as a requirement by law. Vehicle owners without car insurance might tend to have their vehicles repaired by the inexpensive backyard mechanics and panel beaters. In a country where we have so many non-roadworthy vehicles this could pose a significant threat to the safety of other road users!!

Share and Enjoy:

Tags: advice, Cheaper car insurance, choosing car insurance, crime statistics
Posted in Car Insurance Advice, Car Statistics, road safety | 1 Comment »

« Older Entries