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High inflation and stagnant economic growth have been a characteristic of the global economy since last year, as a result of a myriad of factors including increased consumer demand in a post-pandemic era, supply chain shortages across every sector, and the Russia-Ukraine conflict amongst other factors.

This situation will be further impacted by the South African Reserve Bank recently announcing (21 July) that interest rates would increase by 75 basis points, which takes the repo rate to 5.5% as well as the prime lending rate to 9%. Consequently, the insurance industry is adjusting premiums to account for inflationary increases. Momentum Insure brings you tips to assist consumers to save money on their premiums to stay covered for any unfortunate and unforeseen events.

1. Save on your premiums
We all know of or have heard the saying “the sooner you start to build up your profile, the better” and this has been proven true. The longer you have an insurance history, the better the insurance terms and conditions will be. This means that if you take out insurance as early as you can, and have no gap in cover, you will be able to build your risk profile which could potentially mean saving on your premiums.

2. Make sure your car is in order as fuel prices increase
You can waste a lot of fuel and expedite wear and tear on your car by not doing proper diagnostics and maintenance on your vehicle. Check your tyre alignment and pressure, coolant levels, loose parts, and oil levels, among other things. Many workshops will offer a multi-step check to see if your car is in a safe and well-maintained condition. This will save fuel in the long run, as well as reduce the chances of potential mechanical failures and even accidents. This is something to bear in mind as we face petrol hikes.

3. Check your security systems at home
As we all get back into the swing of things this month, we might get complacent about the things around the house we might not have paid much attention to. Double-check that your security devices are linked to your service provider and that all keypads, silent alarms, emergency buttons, and sensors are in full working order.

Ensure that your passcodes are active on all keypads, that everyone remembers the codes, and that your trusted people know how it all works. Keeping your home safe is paramount as this is your little piece of heaven in this big world.

Momentum Insure recognises that increased security lowers the risk of burglary or theft which in turn makes for competitive terms for theft cover. Another way for clients to enjoy lower premiums that’s a win-win is by increasing their safety at home. While safety measures such as CCTV cameras, electric fencing, burglar bars, etc can be a huge investment, clients can recoup some of that money through lower premiums on their home cover.

4. Re-examine your insurance plan
Make sure your insurance is in order by going over what you have listed in your house and the value your belongings are insured for. You may have taken out a short-term policy for something you may not own anymore or listed items you have sold from your home. All of these nitty-gritty things add up to make your insurance premiums higher and eliminating them may save you money in the long run and avoid paying unnecessary premiums.

5. Be safe in all situations
And finally, even if you don’t have grand plans for 2022, it’s not too late to switch to healthy money-saving habits. There is a lot to be said for making sure you are as safe as possible in every situation you can. Make sure your belongings are stowed safely when you are travelling. Ensure that your handbag and other mobile items are adequately covered. Remember if you lose your valuables, it will cost you a lot of money to replace them if they are not properly insured. Remember to keep your valuables in safe places. All of these things will save you money in the long run.

We know that fear of the unknown, as well as fear of financial uncertainty during this period of stagflation, is real so using the Science of Safety, Momentum Insure wants you to feel safe and live your best life while keeping firmly on your success journey.

Photos by Pixabay
Article featured in FANews
Link to original article:
https://www.fanews.co.za/article/short-term-insurance/15/general/1217/five-tips-for-saving-money-on-premiums-during-this-period-of-high-inflation/35112

The purpose of this communication is to make you aware of the possible delays in sourcing motor vehicle parts in the event of a loss or accident.

We have been operating in anything but normal times for the past two years, and for the foreseeable short to medium term, our supply chains, economy, and exchange rates are being heavily impacted by a multitude of global and local factors. This has significant implications for all industries, but notably so for the automotive sector.

Supply and demand of motor vehicles (both new and used), spares/parts and services have all been affected by the impact of the pandemic on supply chains across the globe. Related logistics services of bringing goods into South Africa have also faced heavy constraints and massive cost increases of over 500% in the last two years. Beyond the pandemic hangover and supply chain backlogs, South Africa also faces an additional burden of market shocks - the war between Ukraine and Russia and the floods in KwaZulu-Natal caused significant damage to major vehicle manufacturing plants as well as vehicle stocks. Renewed lockdowns in China and Taiwan due to a resurgence in COVID-19 infections means that supply from two major vehicle component manufacturing countries is heavily curtailed. These combined factors continue to put pressure on the stock holding of all vehicle brands.

While there has been some improvement in parts availability, there remains significant volatility in the markets and supply chains which affects all vehicle brands. There are two important implications to consider:

• A decline in parts availability means that motor vehicle repairs will take longer - expect delays on this front. The costs of parts and repairs are also under-pressure. With the shortage of motor vehicle parts, check when parts will be available for any required repairs and plan your way around this in terms of how long your vehicle will be out of action.
• Hire vehicles are in short supply: Car rental benefits are common in many motor insurance policies – both for individual and business covers – to cover you for transportation while your vehicle is in for repair. If you are planning on doing any non-essential repairs to your vehicle such as fixing minor dents and scratches, first check whether a rental vehicle is available before booking your vehicle in for the repair. If you have selected car hire cover on your policy, this is usually limited to a maximum of 30 days so if your vehicle pending repair is still safely driveable and roadworthy, it would be best to attempt to make up front arrangements with the repairer to wait until the parts arrive prior to booking the vehicle in for the actual repair, versus having your vehicle standing in the repair shop waiting for parts to arrive, and your car hire period running out before your car is repaired.

Santam is working closely with various industry stakeholders including vehicle OEMs, OEM parts dealerships, certified aftermarket parts suppliers, green (second hand) part suppliers and MBR associations to find solutions to assist clients. Santam is also onboarding more certified aftermarket parts and green parts suppliers, as well as increasing the rollout of its PartSmart solution which provides access to a wider pool of parts suppliers and enables greater efficiencies in parts procurement for Santam client repairs.

Photo’s by Pixabay and pexels
Article featured in FANews (Category – short term insurance)
Link to original article

https://www.fanews.co.za/article/short-term-insurance/15/motor/1023/availability-of-motor-vehicle-parts-current-impact/35105

As we begin to emerge from the pandemic, business owners are finding themselves having to adjust to a very different business environment. There is a cascade of complex new risks that entrepreneurs must contend with if they wish to successfully steer their business into the future. In addition to that, many businesses must still contend with many of the same risks that existed before the pandemic started.

Santam head of commercial underwriting Philippa Wild says, “There are so many challenges for business owners right now, including stressed staff and stretched cash flow. Both technologically and systemically, this has resulted in significant changes in our behaviour and has had a profound impact on both our clients and the insurance industry. It is imperative that businesses keep their policies up to date and have adequate risk mitigation policies in place.”

Wild believes the following advice will help keep your business protected in these uncertain times:

The risk management practices every business should have

No matter what type of business you own it is always important to consider what could impact your business detrimentally. From here it is important to develop risk management and safety protocols to help limit the impact and make sure you have adequate and appropriate insurance cover in place. Every business is different but as a rule, maintenance, good digital hygiene (having strong password policies and robust digital safety protocols in place) and strong fire safety protocols are a must.

What to consider:

The pandemic has increased awareness around the need for business owners to review their policies more frequently and keep their intermediaries abreast of any changes in circumstances. While most businesses have tended to renew and review their policies every 12 months, the pace with which things have changed in the past 24 months has made it clear that a more regular review of policies is paramount.  

Wild says, “A large part of any business owner’s risk management function is to disclose all pertinent changes to their intermediary. When they do this, it opens the door for the intermediary to appropriately notify the insurer and thus avoid a situation where there is a cover shortfall.”

The most common business risks:

Based on the number of claims it receives, Wild has identified the following as some of the most common business risks that an organisation will face across a variety of industries:

·       Fires are considered the number one risk to businesses. In the current climate, one large fire could be the catalyst that closes a struggling business permanently. All it takes is a simple lapse in fire safety procedure. For example, if a generator is not maintained, its failure could cause the automatic sprinkler system to fail, which in turn may end up resulting in problems containing the fire.

·       Cybercrime costs South Africa R2,2 billion per year. It can cost small businesses anywhere between R50 000 and R250 000, if not more, to recover from cyberattacks. Any business that uses some type of digital technology is vulnerable to such attacks. This is why it is important to implement good cyber risk management practices and appropriate cyber insurance cover, often available as a package in the market. This will help protect your business against losses such as business interruption, ransomware, and forensic costs, caused by a cyber malware attack. 

·       The accelerating rate of change refers to how quickly things can change. Business owners need to evaluate the impact of new and emerging risks, like cybercrime, and how their own business’s risk profile has changed. For example, with more employees working from home (with company assets being transported and no longer only kept securely on site) there is an increased risk of cybercrime, loss, and damage to company equipment. Then there is also the change in occupancy now experienced at your premises now that fewer employees are on the premises less often.

·       Business processes and reliance on business partners: Any risk management strategy needs to consider how your business relies on business partners and supply chains. If their risk environment is changing, are they adequately protected, and risk managed? Business owners should have contingency plans in place which they can discuss with their intermediaries and purchase insurance where necessary.

Photos by Pixabay
Article featured in Cover Magazine
Link to original article-
https://cover.co.za/a-z-of-safety-in-business/

SA insurance companies are starting to talk about far higher anniversary renewals, or providing the same cover for an additional premium: Darryl Grater – executive head of distribution.

FIFI PETERS: We’re in for more load shedding. I suppose that doesn’t come as a surprise to most of us, with Eskom updating the nation a little earlier today saying it’s still unable to fulfil all the demand expectations being placed on the grid. I can tell you also that the South African President, Cyril Ramaphosa, in his weekly newsletter today wrote about the power situation and said that the government is working on a speedy resolution, and that some of the new proposals to ensure greater intervention at Eskom would be announced sometime this week. But essentially we all need to brace for more power cuts.

We’re going to look at what power cuts have done to claims in the short-term insurance industry. Joining us for that conversation is Darryl Grater, the executive head of distribution at Discovery Insure. Darryl, it’s so good to speak with you. I’m so happy that you are on the Market Update, of course not for the greatest of news, just given Eskom and what it is doing to your business. Can you give us the detail of what has happened in terms of claims since load shedding broke out since we saw Stage 6 for the first time [since] pre-pandemic days.

DARRYL GRATER: Good evening, Fifi. It’s good to chat to you again, and thanks for having me on the show. Indeed it’s been quite an interesting time for insurers overall in the last year. If I just consider how load shedding has impacted us in the insurance market, in 2022 we’ve had over 960 hours of national load shedding and we recently reached Stage 6 with the increased outages. And then with the increased load comes a bigger chance of electrical faults that lead to power surges, overloading, and just a shorting of electrical appliances. In the last six months alone Discovery Insure, which is the company I work for, has seen a rise of over 50% in power-surge claims because of the increased loading frequency and severity. By that, just the frequency, the amount of times that these claims happen, and the increased severity which in insurance terms means additional costs, these claims are costing more than before.

In June this year we received over 300 claims a week just on power-surge claims.

Maybe just some interesting numbers, Fifi – we see three times more surge claims with load shedding under Stage 4 versus no load shedding. Now you can imagine when it reaches Stage 6 it is really exacerbated.

If I consider just contents claims – office contents and home contents claims – power surges are the top three causes of claims. ‘Peril’ – that’s an insurance term for cause of claim. That, among accidental damage and weather and power surges, that’s 75% of our contents claims. So the impact is profound.

FIFI PETERS: Sure. The next question is to where the claims were mainly coming from – individuals, also some offices or small businesses? But it sounds like it’s a combination of the two.

DARRYL GRATER: Absolutely. At Discovery Insure we’ve got a personalised offering which covers domestic clients and their personal households. But indeed we’ve got Discovery Business Insurance, which covers a broad spectrum of businesses in the SME space. I think what’s also important to note at this point is that for consumers, whether they’re business owners or just individuals listening to the call, not all insurance companies cover power surges as standard. There are some companies where you or the broker have to specifically request the cover. And furthermore, even if you have the cover, some insurers charge really, really high excesses – I’m talking over R4 000 just as an excess for a household claim.

Back where I work at Discovery, we cover power surges as standard – obviously [at] different policy levels. Your Purple or High Net Worth plan covers it to sort of full-sum insurance. But then your more premium-sensitive clients would take a lower capped amount for a cheaper premium. And then there are obviously insurance companies offering an additional buy-up. So for an additional premium the customer, whether a business customer or an individual, can buy up to R2.5 million on the business side and obviously to a higher rand value on the personal side.

FIFI PETERS: Darryl, I know you have given us the volumes in terms of how load shedding has impacted your business, but I’m wondering offhand what the value of all these claims is right now, and how much Discovery Insure has been able to pay out so far?

DARRYL GRATER: I won’t comment on the rand value for us specifically, but if you just look at insurance-penetration levels before that, there’s probably a bigger story in terms of South African consumers generally – I’m stereotyping – [who don’t] have the highest insurance penetration in South Africa. More cars are insured than buildings or contents, and only one in three cars is insured in South Africa. So that just gives you a sense [that] not many people have insurance, which sees to a bigger need.

If I just consider the Discovery client profile, most of our clients have supportive policies. So they’ll have their vehicles as well as their assets or their property insured. We’ve got a client base of over 200 000 policies, so you can imagine the impact on our business. And when you consider the insurance market, Fifi, it takes commercial insurance, personal insurance and corporate insurance. The market’s arguably about R140 billion, and a large proportion of that premium goes to property cover. And when you consider [that] surge is now a top-three claim value, we are talking billions of rands.

FIFI PETERS: Sure. So would you say that load shedding is adding to the risk for insurance companies like yourselves of covering your clients, and would you say that, if it continues in this manner, you may have to make some revisions to your premiums to offset the increased cost of insurance?

DARRYL GRATER: Well, if I look at the market, Fifi, there have been insurance companies that have withdrawn surge cover as a standard. So they’ve actually taken away the cover and, if the client wants it, and they want to pay an additional premium. Some insurers like ourselves still embed it up to certain limits. But these interventions are done really to protect the loss ratio of the insurer and to make sure that they remain solvent.

One must also consider the backdrop of insurance over the last year or two. If you consider the floods in KwaZulu-Natal, if you consider just the general fires that have occurred, and then, more importantly, if you consider what’s happening with CPI and inflation, insurance inflation is far higher than CPI, which has been exacerbated by the global supply chain, which is why we talked about **

So with just the shortage of imports linked to the global supply chain, parts and general appliances and everything that an insurer pays for is going up on a higher level. So when you start adding additional causes of claims or perils, like power surges, you’re getting this double whammy because there are more claims costing more. So indeed it’s very topical for insurance companies in the market.

And I think we’ve already started seeing insurance companies in South Africa specifically starting to talk about far higher anniversary renewals, and changes to excess structures and/or limiting cover – providing the same cover for an additional premium.

And that we are seeing globally as well.

FIFI PETERS: Quick tips in terms of minimising the damage from load shedding for your clients?

DARRYL GRATER: I can probably give, let’s say, three, Fifi. Clients should unplug their appliances when the power goes out; power surges generally occur when the power comes back on. It’s always good to invest in a surge protector for the distribution board, which can be installed by obviously a certified electrician with surge-protector plug adapters. And probably, lastly, purchase a power strip with a voltage-surge protector. Clients can protect their appliances by simply plugging them into the power strip.

So these are some readily available interventions that clients can do. And then probably, more importantly, speaking to the broader customer base and population of South Africa out there, get insurance cover [that is] there for you in terms of need – and the need has never been more real than right now, where you just consider the volatility and the risks in the market.

FIFI PETERS: Sure. Darryl, thanks so much for your time. We’ll leave it there. Darryl Grater is executive head of distribution at Discovery Insure.

Article featured in Moneyweb
Photos by pixabay

Link to original article:
https://www.moneyweb.co.za/moneyweb-radio/safm-market-update/power-surge-claims-up-50-in-the-last-six-months-discovery-insure/

South Africans are facing an increasing risk of becoming a victim of fraud, new data from the Southern African Fraud Prevention Service (SAFPS) shows.

The statistics compare the first five months of 2022 to the same period in 2021.

“This is particularly concerning given the economic climate that we are currently facing,” said Manie van Schalkwyk, CEO of the SAFPS. “Consumers are facing a significant cycle of high inflation and are looking for ways to make ends meet. This makes them increasingly vulnerable to scams and schemes which are being carried out by highly motivated, highly skilled fraud syndicates.

Money mule

The SAFPS pointed to an increase in the money mule scam. This is when a person approaches someone else and asks them if they can use their account to send money to a relative in another country.

“While this should immediately be a red flag, you will be surprised at how many people willingly comply in the hope that they can be of assistance,” said Van Schalkwyk. This then opens the door for fraudsters to take significant advantage of their victim.

When it comes to the misuse of accounts through fraudulent conduct, the risk of money muling has increased by 97% over instances recorded in 2021, the fraud prevention group said.

“This is a significant problem and not only limited to South Africa. Money muling is a significant global risk. Reports from Cifas in the UK point out that money muling funds illegal activity such as money laundering, terrorism and human trafficking. Obviously, this is concerning, particularly within the South African content,” said Van Schalkwyk.

Van Schalkwyk said that biometrics is adding an extra sophisticated layer of security to try and prevent financial crime from taking place. However, this makes fraudsters more insistent and increases the level of involvement from the public as they want to lend a helping hand.

Impersonation

Impersonation has always been a significant crime is South Africa as fraudsters prey on their victims through phishing, smishing and vishing.

“Impersonation increased by 264% for the first five months of the year compared to 2021 and could be linked to recent major data breaches. The various data breaches have all highlighted the vulnerability of personal information and how easily accessible they are to the motivated criminal,” said Van Schalkwyk.

Forged documentation

South Africa has one of the highest reported unemployment rates globally, at nearly 35%. “In an effort to increase employability, we are seeing an increase in false qualifications which has increased by 158% over the cases reported in 2021,” said Van Schalkwyk.

Stats by province

Gauteng is the economic hub of the country and is the province which has the highest fraud stats. The SAFPS pointed out that the province makes up 62% of the country’s total fraud incidents and that the number of fraud incidents that were recorded in 2022 increased by 117% over the number of incidents reported in 2021.

KwaZulu-Natal contributed 18% of the fraud incidents in 2022 and the SAFPS said that the number of incidents reported this year increased by 106% over those recorded in 2021.

“The interesting statistic for the SAFPS is the increase in the Western Cape,” said Van Schalkwyk who points out that there are visible signs of an increase of fraudulent activity in this province. The Western Cape made up 8% of the country’s total fraud incidents and there was a 133% increase over the number of fraud incidents reported in 2021.

Photo by Pixabay
Article featured in BusinessTech
Link to original article –

Going for your driving test can be an intimidating endeavour, but there are a few ways that you can prepare to make the process go smoother.

This is what you can expect from a driving test, what the most common mistakes are, and how to avoid them.

What to expect

The K53 Driver’s Practical Test will consist of the following phases:

·       A vehicle inspection and questions from the instructor

·       The yard test

·       The road test

When the test begins, your examiner will ask for an inspection of the vehicle.

This involves doing a scan of the car’s exterior and interior to check for any signs that it isn’t roadworthy, such as deflated tyres or non-functioning lights and other equipment.

Once this is complete, the examiner will ask you to enter the vehicle and begin the yard test.

This requires performing several actions – a three-point turn, alley docking to both the left and right, parallel parking to both the left and right, as well as an incline start.

Upon completing these tasks, the examiner will join you in the car and the road test will begin.

The driving centre will have a prescribed route which includes the following:

·       A multi-lane road

·       An intersection with a yield sign

·       An intersection with traffic lights

·       An intersection with a four-way stop

·       A quiet road where an emergency stop will take place

The examiner will make notes for the duration of the test and will score every fault that occurs, with some counting more than others.

You must also pass an eye examination before being granted your licence.

What to watch out for

The best way to prepare for your driving test is to learn which faults are the most commonly made, and which mistakes cost more than others.

On both the yard and road tests, for example, allowing the car to roll back while on an incline will result in an immediate failure.

Other serious offenses include mounting the curb, as well as traffic violations like speeding, going through a red light, or crossing a solid line.

The most common errors that people make during their driving tests, according to the AA, are:

·       Stalling

·       Collisions

·       Not indicating

·       Riding the clutch

·       A lack of observations at junctions

·       Setting off without performing observations

·       Uncontrolled steering and veering out of lane

How to improve

Learning from these common mistakes could go a long way in helping to pass a driver’s licence test.

An observation requires checking your side mirrors, blind spots, and rear-view mirror.

While it’s possible to check most of these with just your eyes, moving your head is recommended that it’s more obvious to the examiner that you are doing your checks.

For steering, the driver’s hands should be at 10 and 2 o’clock positions on the steering wheel, and never cross arms while turning.

Instead, shuffle the wheel by pulling with one hand while pushing with the other, before sliding them both back to their original positions.

To prevent stalling, it is recommended to practice beforehand with the vehicle you will take to the test to get a good feel for the clutch so you know how much to let out when pulling away.

Not letting the clutch out enough will result in a stall, as will letting out too much – known as ‘dumping’ the clutch; instead, slowly let it out while also gently pushing down on the accelerator.

Relatedly, many drivers lose points for riding the clutch, which is when a person leaves their foot on the clutch pedal when not changing gears.

This is marked down because riding the clutch can cause damage to the transmission over time, as a partially-depressed pedal will slightly engage the clutch while the car is in motion.

Most collisions then occur in the yard phase when a driver makes contact with the demarcations while performing one of the required actions.

For the alley docking and parallel parking exercises, it can be helpful to identify markers that indicate when to begin turning, such as the second or third pole that comes into the rearview, as this will result in more consistent attempts.

The single most important thing that can be done to prepare for a driving test, however, is to practice.

Ask a driving instructor to take you on the route that the driving centre will use during the exam, and practice the areas you struggle in, especially things that can result in a failure like rolling on a hill.

Load shedding, which is now almost a daily occurrence in South Africa, is more than just a major inconvenience – it’s a crime risk too and has resulted in an increase in home break-ins and vehicle accidents.

Insurer Dialdirect has compared the number of burglary incidents and the number of vehicle accidents when there is no load shedding to when there is from July 2019 to May 2022, and found that during the week, load shedding resulted in a 3.2% increase in burglaries and a 5.2% increase in vehicle accidents.  Over the weekend, these figures more than double, increasing the risk of break-ins by 8% and that of vehicle accidents by 13.5%

“The dangerous consequences of load shedding is when street lights and traffic lights are down at night. Motorists are encouraged to drive cautiously at all times, but especially so in poorly lit areas. Treat all inoperative traffic lights as a four-way stop, and when in doubt, yield to oncoming traffic from the right. Do not assume that all other drivers will stop so exercise extreme vigilance and drive defensively,” says Anneli Retief, Head of Dialdirect.

On the home front, when the lights go out, so do the alarm systems, gate motors and electric fencing making it easier for criminals to gain access to your property, and spend longer in it. 

“Most insurance policies stipulate in their contracts that the house alarm must be activated at all times when the home is unoccupied. So, if your house is burgled during a power cut, then, theoretically, your theft-related cover would be moot,” Retief says. “We believe that load shedding is beyond the control of our customers, and therefore, they should not be penalised for it. As such, each case will be considered based on its own merits.”

Dialdirect urges South Africans to take extra precautions at their homes and on the road to avoid loss and damage to property and provides the following tips to stay safe:

AT HOME:

·         Put the proposed load shedding times somewhere handy so that your family will have enough time to prepare for the outage.

·         Get a few high-wattage solar powered lights for your garden, and a few LED lights for inside. Light is also a deterrent to would-be burglars.

·         Keep your cellphone charged, or invest in a portable phone charger, so that you can still call for help if you need to.

·         If you need to manually open and close your gates when you get home, try to have someone come and meet you at your entrance, or arrange for an escort from your security company.  

·         Use padlocks, burglar bars and deadbolts to provide an extra level of home security that isn’t power-dependent.

·         Alarm systems, garage doors and electric gates generally rely on electricity so make sure that these items all have good back-up batteries.

·         Keep a torch or a solar, battery powered light that is charged beforehand in multiple, easily accessible locations around your home. Be sure to also have plenty of spare batteries.

·         Make sure that all appliances – especially those that pose a fire risk if left unattended – are switched off when load shedding starts and gradually turned back on once power returns to minimise pressure on the grid. Load shedding increases the chance of power surges which often leads to damage of home appliances.  While power surge insurance is available, it’s best to rather unplug appliances and devices that are at risk before the storm arrives.

ON THE ROAD:

· Plan carefully. Know when there will be outages in your area or areas you plan to travel through and to. Try to avoid the roads in areas experiencing load shedding as far as possible or wait out load shedding if you can.

· Reduce speed as this will give you valuable extra time to react. Make time to check and double-check before you move.

· When streetlights are out, take extra care in making sure that you can both see and be seen, without hindering the vision of other drivers.

· Treat intersections with inoperative traffic lights as four-way stops, and when in doubt, yield to oncoming traffic from the right.

· Do not assume that all other drivers will stop, so exercise extreme caution and drive defensively. Also bear in mind that not all drivers know an area and its traffic lights well, increasing the risk of them driving straight through an intersection.

· Avoid driving angry and beware of frustrated drivers. The frustration caused by load shedding often spills onto the streets, with dire consequences. Actively focus on keeping yourself calm, driving responsibly and keeping an eye out for irate drivers.

· Leave your mobile phone. Drivers often spend more time on their mobile phones during load shedding to update others that they’re running late – a distraction that could have fatal consequences.

· Beware of criminals, especially hijackers and smash-and-grab criminals, who want to use the cover of darkness to their advantage. Keep your car doors and windows locked and closed, be alert and fully aware of your surroundings and move along as swiftly and responsibly as you can.

“By all indications, load shedding is going to be with us for a while, but a proactive approach to home and road safety, as well as having comprehensive insurance cover in place, goes a long way in mitigating the risk and keeping you and your loved ones safe,” Retief concludes.

photos by Pixabay
Article source- iafrica.com
Link to original article - https://iafrica.com/load-shedding-leads-to-more-break-ins-and-accident-practical-tips-to-stay-safe/

A good credit score means you are a responsible borrower and you will likely have a lower car insurance premium than someone with a bad credit score, according to Budget Insurance.

A good credit score means you pay off your debts consistently and on time, and you don’t spend too much of your available credit too often.

We spoke to Tyrone Lowther, head of Budget Insurance, to find out how and why your credit score affects your monthly car insurance premium.

Credit scores and car insurance

Lowther said when calculating an applicant’s risk, a credit score is taken into account alongside factors such as the make and model of the car, address of the owner, previous claims history, purpose of the vehicle, and where the vehicle is kept at night, as these elements “serve as a lifestyle and risk indicator.”

A good credit score therefore means you’re less likely to default on your monthly insurance premium, which makes you a less risky person to insure in the eyes of the insurer.

Lowther said at Budget there is no minimum credit score for a person to be insured, but that a score above 670 would be considered good.

Credit scores range between 400 and 900, and Lowther said the Credit Bureaus place all individuals on the same scoring scale which insurers then use to determine the impact of their credit score on their monthly insurance premium.

Improving one’s credit score over the time of the insurance policy also results in favourable adjustments to your premium, as changes in a customer’s credit score is taken into account at the annual policy review stage, he said.

At premium review stage, customers receive the benefit of the depreciation in value of their vehicle as well as that of an improved credit score, in terms of their premium calculation

“Were it not for this adjustment, the increase a customer receives (if any) would be higher,” said Lowther.

However, Lowther said a much larger determinant of your monthly insurance premium is the cost of repairing the vehicle rather than your credit score, or even the vehicle’s value.

“Rectifying damage to modern vehicles can be a very costly affair and the cost of repairing a vehicle this year will be substantially more than the same time last year, even though that vehicle may have depreciated by as much as 10-15%,” he said.

“So, while your credit score may have improved, and the market value of your car may be lower, the premium is providing cover against damage incurred more than anything else.”

A relatively low percentage of accident-damaged vehicles are actually written off and an estimated 90% of vehicles involved in accidents are repaired and put back on the road, according to Lowther.

How to build a good credit score

According to Budget Insurance, the following habits tend to result in “good” credit scores:

·       Making loan repayments on time

·       Always paying the minimum loan repayment, or more if possible

·       Keeping the minimum amount you spend on your credit card as low as possible, ideally below 30%

·       Spacing out credit applications at least six months apart as multiple applications can drop a credit score

“If you have a negative credit score, you can turn things around by practicing these good credit habits,” said the company.

Photos by Pixabay
Article by TopAuto

Link to original article:
https://topauto.co.za/features/48525/how-a-credit-score-affects-your-car-insurance/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

The Lloyd’s building has to be one of the oddest in the world. It’s sometimes known as the “inside out building” because there was a time when it became an architectural fad to put all the piping and the lifts and the electronics on the outside, to keep the inside pristine. 

The notion of being inside out could as easily apply to the people who work there.

Selling insurance against alien abduction was, of course, a gimmick. The broker was also hawking other forms of crazy coverage, like MPs-Being-Caught-Drunk-and-Disorderly insurance which, frankly, I think a whole bunch of South Africa politicians could use.

His point was that it’s technically possible to sell any kind of insurance; all you have to do is balance the cost against the risk. 

For example, supermodel Heidi Klum at one point decided to insure her famous legs. But she was required to fly to London to be “inspected” by underwriters, which is not creepy at all. They valued her legs at £1.5-million as a pair. 

Just to show they had done their jobs properly, the underwriters insured one leg at £130,000 less than the other because, sadly, it had a small scar. But it is nice to know they took their leg-examining job seriously.

The trick to insurance is balancing the premium, the risk and the coverage. If you insure your car for a high premium and it costs you more than you paid for the car, it’s not worth it to the car owner – but if the premium is too low, it’s not worth it for the insurance provider. So, insurance companies hire actuaries to model the risk for a given level of coverage, and calculate a premium.

And that may sound simple, but trust me, it is not. If you are insuring against alien abduction, you have an existing database of the number of people who have been abducted by aliens. That would be zero. Hence, any premium you charge would be money in your pocket. But almost everything else changes over time.

And golly gosh, have we had some extraordinary insurable events over the past three years: the Covid pandemic, the wholesale looting of shops and now the extraordinary downpours around Durban. How have the insurance companies coped with this flood of disasters?

Very well, actually. The losses of SA’s retailers in the looting spree were quickly and almost entirely covered by Sasria, which surprisingly had lots of loot in its coffers. About R17.2-billion was paid out as of February, with R16.6-billion still to be paid out at that point. 

The problem is that if looting happens again, we will be up the creek without a paddle. But as far as the industry is concerned, the insurance didn’t come out of their pocket – a huge relief.

As far as short term insurers are concerned, the problem with the Covid crisis was business interruption insurance, and at first, the insurers were afraid the claims would overwhelm them. 

Worse, the reinsurers were unwilling to cover the claims, and it looked at one point as if there was going to be a horrible showdown. But as it happened, once the data was in, the insurance companies realised they could manage it – and paid out.

But now we have strike three –the Durban floods. Thousands of claims are still coming in, and for the insurance companies, they look ominous.  

Although Covid and the lootings seemed like bigger cataclysms, the floods could end up being the hardest pill the industry will have to swallow. 

Santam’s CEO Lize Lambrechts told investors recently that the floods were the largest natural catastrophe in Santam’s history. Their best guess for gross exposure is R3.2-billion. That is quite a lot more than its earnings last year, which were R2.3-billion, but there will, of course, be reinsurance claims.

And there is a strange doubled-edged effect of disasters; they tend to remind people about the utility of insurance. In the same Sens announcement warning about a likely hit to earnings, Lambrechts noted that conventional insurance achieved strong, gross written premium growth of 7%.

Santam’s share price slid during the Covid period, but has rebounded recently, and year to date, it’s up 20%. The other short-term insurers are likely holding up, too. 

Disasters hurt insurance companies short term, but tend to support their business longer term – assuming they survive. And assuming aliens don’t arrive en masse. BM/DM

Photo by Pixabay
Article written by Tim Cohen
Featured in Daily Maverick
Link to original article -
 https://www.dailymaverick.co.za/article/2022-06-02-after-a-series-of-disasters-is-it-time-to-consider-alien-abduction-insurance/

Compensation for dog bite claims in South Africa can include payment for past and future medical costs, loss of earnings and general damages for pain and suffering, says specialist legal firm DSC Attorneys.

The firm notes that dog attacks resulting in serious injuries are not uncommon in the country as large dog breeds are popular, and many residents own dogs to guard against potential intruders.

“In South Africa, a dog attack can give rise to a claim on the basis of the ‘actio de pauperie’, against the dog’s owner. With this type of claim, the owner’s liability does not depend on actual negligence or intent to harm.”

The legal principle dating back to the Roman Law, known as the ‘actio de pauperie‘ holds that the owner of a domesticated animal is ordinarily held strictly liable for harm caused by that animal.

DSC Attorneys noted that for this claim to succeed, it must be established that:

• The defendant (the person you’re claiming against) has ownership of the dog;
• The dog is a domesticated animal;
• The dog acted outside its nature (which, it’s assumed, doesn’t involve wanting to attack people); and
• The dog caused harm to the person claiming.

The cases you should know about

DSC Attorneys outlined some of the recent cases which show how dog bites can result in millions of rands in claims in South Africa.

R1.4 million

In 2021, Mohammed Essack of Howick West was attacked by a neighbour’s pit bull. The dog entered his property and attacked him, resulting in injuries that required hospitalisation.

Essak is currently claiming R1.4 million in damages. The case, brought before a Pietermaritzburg court in May 2021, was adjourned to a date to be arranged.

R2.4 million

In the 2020 case, Cloete v Van Meyeren, a man was attacked and seriously injured by three pit bull-type dogs on a public street. He claimed damages of R2,341,000 from the dogs’ owner.

The owner (the defendant) argued that the dogs were able to escape his property only because an intruder had left the gate to his property open. Normally, the gate was secured by a padlock.

The judge found in favour of the plaintiff – a ruling that reinforced the principle of the actio de pauperie.

The legal ruling provides that “the owner of a dog that attacks a person who was lawfully at the place where he was injured, and who neither provoked the attack nor by his negligence contributed to his own injury, is liable, as owner, to make good the resulting damage”.

R4 million

In 2020, the victim of a dog attack lost an arm from the elbow down. A personal liability insurance claim was settled out of court for a little over R4 million.

What affects compensation in dog bite claims in South Africa?

Per the concept of the actio de pauperie, negligence by the dog’s owner is not a prerequisite for a successful claim.

Nonetheless, a claim is more likely to succeed if there’s evidence of negligence by the owner. Examples are failing to repair a gate that won’t close or a gap in fencing or letting a dog off its leash in a public area.

The behaviour of the person attacked may also be relevant. For example, was the plaintiff attacked after illegally entering the dog owner’s property? Also, did the plaintiff provoke the dog?

Like other types of personal injury claims, dog bite claims can be complex. Even if a dog attack occurred on the owner’s property, the owner could be found liable.

Other factors that will likely affect compensation in a dog bite claim are:

• Medical costs associated with the injuries;
• Loss of earnings due to the injuries;
• The severity and likely long-term consequences of the injuries sustained; and
• The age of the plaintiff.

Article featured in BusinessTech