Old Mutual Insure is urging drivers to take their responsibility to follow the rules of the road seriously, considering the uncertainty surrounding the implementation date of the driver demerit system. The original implementation date was set for 01 July, but doubts have surfaced whether the Administrative Adjudication of Road Traffic Offences (Aarto) Act will be signed into law in time.
“We realise that licensed drivers are concerned regarding the confusion around the implementation date. We urge all drivers to take the pending Aarto regulations seriously and continue to be responsible road users, despite the uncertainty,” says Christelle Colman, spokesperson for Old Mutual Insure, adding that the company looks forward to receiving clarity as to the implementation of the Act.
Amidst the uncertainty with regards to the roll-out and how the implementation of a phasing approach will work, drivers are unsure what to do should they find themselves on the wrong side of the new regulations, and how this would impact their insurance.Naledi
“In the long term, the Aarto enforcement ought to impact favourably on the cost of insurance while reducing the number of unlicensed drivers and vehicles on South Africa’s roads,” says Colman.
She adds that it should improve driver and vehicle data, reduce the cost and maximise the positive impact of insurance in South Africa.
“All companies offering short-term car insurance require that drivers of insured vehicles have valid driver’s licenses. The risk of a client clearly changes if a license is suspended or withdrawn and it will be the client’s responsibility to update his/her insurance accordingly.”
She further adds that Aarto will benefit drivers and policyholders in that it will, over the long term, assist in pricing premiums more accurately.
She says under the Aarto act, it pays to be a good driver, rather than a bad one.
“The demerit system could potentially be linked to an underwriting criteria as it does reflect driving behaviour. Drivers with poor record on this system could face higher premiums, but that would be at the discretion of each company.”
The highest risk is that drivers could lose their licenses due to speed fines (even minor ones) which could potentially mean that their existing motor policies will not respond or that they will not be able to get motor insurance.
“We already have a very high percentage of uninsured vehicles on the road. This will increase uninsured vehicles on the road and will also have a severe impact on the recovery process after an accident.”
Very importantly, says Colman, policyholders should be aware what the implications of the zero-alcohol limit is on insurance. Drivers who accumulate more than the stipulated amount of demerit points will effectively lose their license and will not be able to claim from their insurance company.
She warns that the devil is in the detail of the implementation.
“If poorly-implemented and not supported by an efficient licensing process, the opposite may well be achieved. Clarity is needed to avoid confusion,” says Colman.
Also, if not properly enforced, the system stands the chance of widespread non-compliance and even legitimate legal challenge.
“We encourage all drivers to be responsible law-abiding citizens on the road and to be mindful of how their driving could impact insurance cover. Should they not do so, it could lead to financial losses and complications,” concludes Colman.
About Old Mutual Insure
Old Mutual Insure is the oldest short-term insurer in South Africa. We partner with brokers to offer an extensive range of insurance products and solutions to fulfil personal, commercial and corporate needs. We also provide insurance products for the agriculture, engineering and marine sectors. As a brand, we promise to do great things as we protect what’s important to our customers and put them first in everything that we do.