Posts Tagged ‘crime statistics’

Sorry Hitchhiker…I dare not give you a lift!

Written on November 9th, 2009 by admin
Categories: Car Insurance Advice, Safe Driving Tips

Sorry-Mr-Hitchhiker...I-dare-not-give-you-a-lift!Travelling between Johannesburg and Bloemfontein last week, I drove past several hitchhikers standing at roadside. I was alone in my car and as I approached, I could see the look of anticipation in their eyes, followed by the look of disappointment and even anger as I merely glanced their way and continued with my journey!

Did I feel bad at merely driving by with an empty car? Yes – I did feel bad. I remember that as a student we often made use of lifts to get where we needed to go. Working as a tour guide in the Cango Caves 30 kilometres outside of Oudtshoorn, we were often able to hitch a ride back to town. This was made easier by wearing our tour guide uniforms and some of the tourists giving us the ride recognized us as their guides. I also remember how many years ago we often gave lifts to soldiers from George to the military base in Oudtshoorn. They were dressed in uniform and were often wearing a band across their soldiers indicating that they are military personnel in need of a lift.

Do we need to feel sorry when not stopping to give someone a lift? No – we need not feel sorry! Every single anti –hijacking guide I have come across alerts the driver to avoid picking up strangers! Unfortunately we live in times where crime is a major road safety threat and criminals prey on innocent road users.

It is important to be alert to these dangers and to inform the foreign visitors that many cars have been hijacked by hitchhikers in South Africa. Road users have been assaulted or, if lucky, left at roadside to call for assistance after their vehicles were taken from them!

We have, on the car insurance blog discussed the importance of protecting your car from vehicle theft. One of the most basic requirements is not to place your vehicle and your life at risk from strangers at roadside. Always remember that you cannot judge a book by its cover – even though the person requesting the lift might appear to be neat and approachable, that might just be the psychopath that horror movies are made of….

Avoid the car insurance claim by being cautious. Do not stop to allow strangers climbing into or approach your vehicle. If you need directions, stop at a filling station and ask the petrol attendants. Trying to figure out whether the hitchhiker is decent and not a risk is taking a gamble…Do not gamble with safety on the road!

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What does the SME Survey tell us about business and car insurance?

Written on October 21st, 2009 by admin
Categories: Car Insurance Advice, General Information

I had the privilege of attending the release of the SME Survey results for 2009. This Survey provides insight towards many of the perceptions amongst our small business leaders.

The SME Survey research is based on a randomly selected sample of decision-makers of South African Small, Medium and Micro enterprises (SMMEs), consisting of companies with 1 to 200 staff. This year’s survey consists of approximately 2 500 respondents.

What is a SME?

The definition of SMEs used for the Survey is based on the National Small Business Act 1996, as amended in 2004, which stipulates varying definitions for each industry sector, including number of employees, turnover, and value of assets. A small enterprise is defined as having up to 50 employees, and a medium enterprise from 51 to 200. Companies with up to 20 staff are defined as very small enterprises.

What does the Survey tell us about Car Insurance?

SME Survey Results

It is interesting to note that 86% of business leaders have confirmed that they insure their company vehicles. It might be a bit surprising that there is a higher rate of insurance for office furniture [88%].
Arthur Goldstuck, in his presentation pointed out that small business leaders appear to neglect the very important aspects of insurance against “data loss” and “keyman insurance”.

It is evident from these results that the risk on our roads is perceived as very REAL risk, and that car insurance is regarded as an important component for the survival of your business!!

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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!

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!!

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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-insuranceIn 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!!

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Crime statistics confirm the need for car insurance!

Written on September 22nd, 2009 by admin
Categories: Car Insurance Advice, Car Statistics, General Information

crime-statisticsEarlier today the Minister of Police revealed the crime statistics for South Africa. The sad truth is that South Africa is still trapped in a web of crime, with 5700 serious crimes reported every day in the country.

It has been revealed that the Police are reporting 18 000 murders per year. Business robberies are up by a staggering 41.5%, and commercial crime is up 16%. While so-called contact crime still accounted for 32% of all crime, there had been declines in five of the seven categories measured – including murder, which was down by 3.4%.

But what do the stats tell us about car insurance?

Of particular concern is the following statistics:

  • House robberies are up 27.3%
  • Vehicle hijackings are up 5%
  • Truck hijackings are up by 15.4%

This is confirmation that South African car owners need to protect themselves from vehicle loss. Not only will it be required to have car insurance in place to cover against financial harm – but also vigilant and alert driving to protect from bodily harm.

On this Blog we will strive to provide advice, suggestions and information on how to protect both cars and the lives of vehicle owners!

Also view on the Arrive Alive website:

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