Santam continues to insure Citi Golf drivers

Santam continues to insure Citi Golf drivers

In response to reports that some insurers will no longer insure certain models of Citi Golfs, Herman de Meyer, Underwriting manager at Santam, said that Santam's approach is to help its clients to manage their risk responsibly and effectively.

'In all instances we advise our clients on the most feasible way to insure and protect themselves and their possessions. Santam is aware that Citi Golf vehicles pose a high theft risk and as such we have decided to help our clients protect their vehicles by requesting the installation of a tracking device,' he says.

De Meyer says that, as from 1 October 2007, all Citi Golfs and similar models have to be fitted with a tracking system. This requirement applies to new clients as well as to new items on existing policies. While no action has yet been taken regarding existing clients who drive Citi Golfs, he says that the company will monitor the situation closely and may extend the requirement in future.

He says that Santam has negotiated a favourable tracking option for Citi Golf owners, in order to provide a cost effective means of protecting their vehicles against theft.

Speak to us for more details about this.

Cellphone Scam & Identity Theft

We've all heard horror stories about people's money being stolen out of their online bank accounts, or receiving accounts for which they have never applied and then finding out that someone has done a whole lot of shopping on their behalf, leaving them with untold hassles never mind the debt itself!

Clearing one's name is not as easy as walking into the store & telling them that you are not responsible for the debts. In fact, it can cost you quite a packet in legal fees, over and above the time wasted!

Criminals are getting smarter and the latest scam involved many cellphone store employees who steal customers cellphone numbers, and then apply for a SIM swap. Essentially they are able to hijack your cellphone and then, receive the bank's unique verification code via SMS and transfer money out of your account online.

Normally, a SIM swap is done when a cellphone is stolen and a replacement SIM card is issued with the person's original cellphone number unchanged.

So far, only Vodacom has admitted to being affected by this crime. South Africa's other networks MTN and Cell C are aware of the problem but apparently have not been affected by it.

What are the warning signs?

• Your cellphone suddenly stops working and you are unable to SMS or make calls: Although this could be a sign of a network problem, it could also be that a SIM swap has taken place without your knowledge, leaving your SIM card useless. Call your servioce provider immediately to ensure that a SIM swap has not been done.
  
• You get an email from your bank asking you to confirm your bank details and password. Never reply to these emails, regardless of how credible and legitimate they look. Contact your bank immediately.

Insurance protection against Identity Theft is available from Absolutely Covered Brokers, underwritten by AIG SA. Contact us for more information on how to protect yourself against Identity Theft.

Tracking systems that protect more than just a vehicle

"Tracker and the SAPS have recovered electronic appliances worth almost R1-million in Cape Town recently, after first recovering a hijacked truck and then tracing its movements through its Tracker.

The truck, loaded with various televisions, plasma and LCD monitors, radios and MP3 players for an auction, was hijacked from a company's premises late last night in Parow.

The Tracker was activated early this morning and within 45 minutes the truck was recovered with less than a third of its original load.

Tracker then accessed the vehicle's movement history through advanced satellite tracking technology and investigated the co-ordinates where the truck had stopped prior to it being recovered.

"Together with the SAPS Maitland Dog Unit, we managed to recover the entire load of appliances and electronic goods from one of the three sites we investigated. This is the second time in recent weeks where our technology has helped us do more than just recover a hijacked vehicle. The alleged hijackers of another vehicle in Cape Town were recently linked to the murder of a woman after her body was discovered at one of the sites where the hijacked vehicle had stopped, prior to being recovered," says Tracker's Communications Manager, Gareth Crocker.

The vehicle tracking industry continues to have a major effect on combating crime in South Africa, as vehicle crime is so often at the centre of other forms of violent crime such as cash-in-transit heists, armed robberies and murder. In just over a decade, Tracker has recovered more than 35 000 stolen and hijacked vehicles, which has led to some 6700 arrests."

Tracking systems often save lives, not only vehicles and property. It's well worth investigating the installation of a Tracking System in your vehicle, given the crime situation in our beautiful country. It may save you more than just your vehicle!

Speak to us about the various tracking system options available... click here now

Pay As You Drive Motor Insurance

Why should you pay more for motor insurance simply because you use your car for business purposes? Many business owners travel less than an employee who travels in peak traffic on congested roads to their place of work. So why should the business owner pay a higher insurance premium? The good news is: With Hollard's Pay as You Drive policy, you pay for the distance travelled, not the reasons for the travelling!

Many business people are in fact clocking up fairly low kilometres

The mileage monitoring that goes with Hollard’s Pay As You Drive motor insurance has blown a motor insurance underwriting assumption out of the water by proving that the ‘business use’ premium loading is often based on a false premise because business people do not all travel further than private vehicle users.

“Before advanced onboard GPS technology gave Hollard a choice, we did what other motor insurance companies do and that is to make assumptions and group people into risk categories.

“One of these groups was people who drive cars for business use. The assumption here was that all business people drive further than ‘private’ users and are therefore exposed to greater risk of accident and theft,” says Zuriel Naiker, Communications Manager at Hollard Insurance.

“This assumed greater risk can carry a premium loading of up to 30% ... and sometimes more. But Hollard’s Pay As You Drive, with its accurate and automatic monitoring of monthly mileage, is proving that many business people are in fact clocking up fairly low kilometres.

“Many business people also use a company car so that their own car is used rarely for business or at weekends. With Hollard’s Pay As You Drive there is no ‘business usage loading’ at all because the focus is on how far you travel and not why – and that’s fair.”

Technology adds benefits

So drivers, both business and private, are reaping new and revolutionary financial rewards and handy services made possible by advanced GPS technology both in lower premiums and other advantages.

Naiker explains that the monitoring device fitted to a vehicle automatically monitors mileage which opens up new opportunities to offer additional services to motorists:

• Fair and transparent premiums for low mileage users, calculated on actual kms travelled
• The less you drive the less you pay
• There is no ‘business loading’ payable with Pay As You Drive because the emphasis is on how far you travel and not the reasons why. Usage has become a non-issue.
• Drastic drop in premium for car owners during periods that they are on holiday without their vehicle
• Tax advantages of having electronic log books available online, accessed through a personal password
• Travelling expense claims are easy to prepare from these online automatic log books
• Evaluating the level of car usage by various family members is also possible through these online logbooks
• The ability to monitor the whereabouts of a car at any time of the day or night can put minds at ease – especially parents with driving age children
• The device is also a tracking system for vehicle retrieval
• There is a panic button inside the car
• Calculating petrol consumption is made simple

What took so long?

It’s about technology, says Naiker. “It is only because of advances in GPS technology that Hollard has been able to design this fully automated Pay As You Drive motor insurance which brings a really fair deal to people who drive less ... and with 21st century style online benefits which were never possible before. Fully automated Pay As You Drive is one of Hollard Insurance’s recent industry firsts.

“Many motorists travel as little as 10 to 20 kms a day. So from a fairness point of view, why should these short-distance drivers pay the same premium as those who travel ten times that distance every day? Thanks to new technology they don’t! “

Do you want to save money on your premiums? Want to get a top of the range GPS enabled Tracking System? Get a quote on Hollard's Pay As You Drive Policy NOW... Click Here, E-mail us your contact details & we'll call you back.

Motor Insurance: Business Use or Private Use

It may be necessary to take on a fully-fledged commercial policy

Many entrepreneurs are unaware of the need to inform their insurer when they begin using their vehicle for business purposes.

Lourens Joubert, Head of Commercial Underwriting at Santam says, “Whether you are starting a big business, a working mom starting a small home industry, or an estate agent, and you are using your car for business purposes you need to inform your insurer to update your car insurance policy.

“Depending on the extent of use, you may be able to retain your personal, non-commercial, policy by adding cover for business use, or it may be necessary to take on a fully-fledged commercial policy.”

Joubert says by using a vehicle for work purposes, in addition to usual use, means a driver is clocking up more kilometers, spending more time driving in congested traffic and therefore increasing risk, as they are more likely to be involved in an accident.

“Obviously the frequency of business use and the type of business will need to be taken into account as well as whether or not the vehicle is being used by an employee.

“Employees are not covered under the standard commercial motor policy if death or bodily injury should arise from the course of their employment. Compensation for such a loss is payable by the Compensation Commissioner under the Compensation for Occupational Injuries and Diseases Act (COIDA).

“However”, Joubert adds, “should the accident occur before or after working hours – therefore being outside the scope of their employment, the commercial motor policy would cover the claim in circumstances where the insured is legally liable for the accident.

“COIDA will also grant compensation for employees who are provided with free transport to and from work by their employers, provided that the vehicle is driven by the employer or one of their employees.

“An employee is obliged to first lodge a claim for compensation in terms of COIDA, and may then approach the Road Accident Fund (RAF) for any further compensation. The RAF will only pay out over and above the COIDA payment, not in addition to it.

“Passenger liability cover, other than for employees or members of the insured’s own household, for private vehicles or vehicles with a carrying capacity of less than 1 500kg, is usually included under the standard commercial motor policy. Owners of vehicles falling outside this description can purchase passenger liability cover for an additional premium.”

Joubert concludes: “Many entrepreneurs forget or are unaware of the need to transfer their personal policies to commercial policies when starting out. If a business owner or employee is using their vehicle for business purposes, it is best to consult a broker to advise you on the best policy to suit your needs.”

Things start to get a bit hairy in the short-term insurance world

There are a whole lot of things going down in the short-term arena at the moment, that are bound to leave many players thinking... EISH!

Crime levels (although according to our government, the high crime rate is just a perception, not so?) and flood damage certainly won’t help claims ratios (i.e. premium : claims).

The possibility of a further interest rate hike this month will also exacerbate the knock-on effect the motor trade has felt with a slowdown due to the New Credit Act and registration system problems. (Speaking of which, do you know what e-Natis stands for? Eish Not Available Today Sorry!)

South African vehicle sales during July fell 6.4%, or 3 596 units, to 52 879 units compared with 56 475 new vehicles sold during same time last year, new sales data showed on Thursday. Sales statistics from the National Association of Automobile Manufacturers of South Africa (Naamsa) showed, however, that the decline was substantially less than that seen during the previous months. During June, sales fell a massive 12.1% to 50 056 units. Maybe early signs of a slight recovery?

And on a similar note:

South African short-term insurer Mutual & Federal posted an 11% decline in headline earnings per share to 187 cents in the six months to end-June as claims increased, the company said on Thursday. The company cited a substantial increase in the incidence and severity of large commercial fires, motor vehicle claims and extensive weather-related losses following storms in Gauteng province in January and KwaZulu-Natal in March.

Security Awareness at Home

It's a sad state of affairs when we have to live our lives in a constant state of fear, but it is a reality in South Africa, and being vigilant can save your life. Here are some security tips that we all should follow:

GENERAL SECURITY MEASURES

You should always be in a Level B / Yellow state of alertness. This means that you are scanning ahead for possible trouble and are aware of your surroundings. This is applicable when you are driving, at home etc.

Always carry packets / briefcases etc in your weaker arm, allowing the stronger arm to be free holding keys (or if the situation requires it, defense spray).
Leave flashy jewelry at home.
If you have a firearm, do not advertise the fact that you have it.

BASIC SECURITY MEASURES WHEN DRIVING

Hijackings often occur when you are leaving for work or arriving home from work. This is because you are thinking about supper or work etc and you are not concentrating on your environment.

• Plan your route and make sure your vehicle is serviceable.
• Do not use the same route, vary your routine. (If possible, occasionally switch vehicles with your partner).
• Do not encourage hawkers. They distract you while you are stopped and this can lead to smash and grabs etc.
• Keep your windows closed.
• Be especially aware of people with their shirts hanging over their trousers or wearing jackets.
• Leave a space between you and the car in front of you.
• Do not get involved in any "road rage" argument, this may be a decoy.
• Be careful of "bumper bashing" incidents - call the police or if you are uncomfortable, drive to a police station or populated area where there are security officers.
• At intersections, leave your car in gear with your hand on the hand brake to enable quick movement.
• Slow down from a distance when approaching intersections.
• Vary your speed if possible (Do not go over speed limit).
• Watch hawkers at robots. They often have a hawker who indicates the car to another hawker who is further up the street.
• Drive by. Drive past your house. Make sure no one is following you. Be wary of vehicles sitting in the road and loitering people.
• Ensure that there are no hiding places at your gate / garage. (Trees and shrubs etc)
• Have your panic button close at hand. (Some security companies allow for "greet" services where they will meet you at your house.
• Check on the behavior of the dogs. They would show if something is untoward.
• Try to have electronic gates which would eliminate getting out of the vehicle.

BASIC HOME SECURITY MEASURES

• Be careful when something attracts your attention outside your house. (The ploy of setting the gate motor alight may have evolved from the trick used by criminals to attract farmers from their homes during farm attacks. Do not run blindly outside to put out the fire.)
• Check the behavior of your dogs.
• If at night, turn off the lights inside your house before looking out the windows. Make sure you have external lights shining AWAY from the house.
• Keep you garden neat and tidy.
• Ensure you check your security panic button once a month. (Please phone the security company when running a test.)
• Make sure the external council electrical box is locked.
• Make sure your property is numbered correctly.
• Be aware of bogus people at your gate. Check ID of council workers etc, you can phone to confirm they are who they say they are.
• Be careful when you notice loitering strangers, people asking for work, signs of entry (damage to gates, post boxes etc), the attitude of servants, unscheduled visits and odd occurrences, taps left running, dogs missing etc.

Under-Insurance

Under-insurance pitfalls...

South Africans are chronically underinsured, new research shows, and are putting themselves at serious financial risk.

According to research completed by short-term insurer Santam, some 40 percent of short-term insurance policyholders are under-insured by up to 45 percent.

Santam says, "This means in terms of the insurance contract, a policyholder will only receive partial compensation after submitting an insurance claim".

Hit by a burglary
As an example, if the replacement value of your house contents comes to R200 000, but the sum insured is just R110 000 and during a burglary R20 000 worth of goods are stolen, only R11 000 will be paid out to you.

This is because you are underinsured by 45 percent and therefore only 55 percent of the loss is paid out.

No-one wants to come up with cash when they are experiencing a traumatic time. Under-insurance can put people under severe financial strain.

The problem is that most people fall into the trap of under-insurance because they are unaware of the main pitfalls.

Insuring your entire home?
Due to the fact that crime is top of mind for many when insuring, you often insure only for what you think may be stolen in the event of a burglary. Insurance will however cover you for far more than crime, so it's not a bad idea to insure for what it would cost you to replace everything you own should your house burn down in a fire.

Not insuring your assets at the correct replacement value is one of the main mistakes people make. The sofa that you bought five years ago for R1 500 might now cost R3 000 to replace. The contents of a house are insured at replacement value (vehicles are insured at either market or retail value). Therefore, you have to revise your policy at least annually to make sure that your cover remains adequate.

Policyholders should also immediately add new purchases and gifts to their policy.

When insuring the actual bricks and mortar of your home (homeowners insurance), bear in mind the current day building costs, since it is those costs that will be incurred when repairing damage to your home.

Only in South Africa

There are no words to add to this story, without the photos, no-one from anywhere in the world will believe this is possible!

This Toyota Tazz was stolen. It was then in an accident.

3 cows were found inside (also stolen) --- tied up and squashed in!

See the photos below.

When the cows were removed the vehicle appeared --- rear seat and front passenger seat had been removed to fit the cattle in!

The last photo shows the 3 cows after their release --- remarkably unscathed.

Only in South Africa!

Homeowners Insurance

For decades South African homeowners have been forced to use the bank's insurance products, who are coincidentally (i don't think so) owned by the banks. Talk about looking after yourself!

The bank earns interest and charges admin fees on your bond, then they insisted that you accept their insurance, with an insurer owned by the bank. Then they charge you an inflated premium and charge you admin fees and interest on your insurance premiums as well!

Now, thanks to the National Credit Act, homeowners can insure their homes with the insurer of their choice. As a result, we have helped numerous people save money on their homeowners insurance in the past month.

Typically, the banks try to hang onto their client's (read possessions - banks think they own you, by the way) in various ways. Here is how they do it:

• Absa insists on a whole list of extensions which the average person doesn't understand - luckily, for our clients, we confirm cover with the bank on our client's behalf - no effort required from our clients.

• Standard Bank will try to requote the client after he instructs them to cancel the bank's policy - especially if your home is insured for over R3M. Typical, now that they stand to lose the client, they offer him/her a lower premium, but for the past years the bank has charged inflated premiums, without any competition! What a nice position to be in! But it's not all about premium, is it? Once we point out that our insurer's product is in fact much more comprehensive than the bank's, then it's a no-brainer.
  

For more info on homeowners insurance, click here
For more info on our other products, click here

Welcome to a brand new Blog!

Firstly, welcome to this, the 1st entry in this blog.

I will be posting articles and issues relevant to the world of insurance here. The blog will also serve as a soapbox for me to vent my frustration, and announce my successes for all to see.

These are my opinions, so please accept it as such. In many cases, my opinion is vastly different from that of the insurer. An insurer looks after his own interests, it is up to me to look after my client's interests. That is why I am a broker... I fight for my clients rights, especially when they have been unfairly dealt with by an insurer.

Feel free to post any comments, or if you have any particular
queries, please contact me via email.