Car Insurance Claims In SA Rise Sharply |
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13 August - The latest results by Mutual & Federal, one of the largest short term insurance providers in South Africa, have very disturbing implications for those of us who are responsible enough to drive with car insurance. A steady increase in the number of motor accidents and subsequent insurance claims means that our premiums will continue to rise as well. M&F reported an 8% increase in the number of premiums, but that was tempered by the big increase in the number of vehicle accident claims that led to a decline in underwriting profits. There is a simple explanation for why this is happening, but that doesn't make the news any less disheartening. In South Africa today a staggering fifty thousand additional cars are added to our roads every month. These vehicles are new to the roads, but most of them are not new cars by any means. If you buy a car on HP it has to have insurance, but if you're driving around in an ancient jalopy or a combi used as mass transit say, then there is no obligation to have any kind of car insurance. In the last few years alone the pool of cars has increased from six million to more than eight million. In that same time infrastructure of our roads has remained largely the same. There are now a lot more accidents on our roads, and the key is that car insurance is not compulsory in SA. Short term insurance experts estimate that only one-third of drivers in South Africa are insured! This means that those of us who do have insurance must bear the burden and expense of all those drivers who do not have insurance. Premium costs will continue to skyrocket, and it will become increasingly difficult to get coverage as insurers have to make sure that they give policies to competent drivers. Related Insurance Articles: * Sanlam Posts Strong Results For Now * SA Insurance Firms To Face Investigation * Dial Direct Offers 4x4 Short Term Insurance * New SA Insurance Company Launches * SA Eagle Now Part Of Zurich Financial Services Group * Insurance Scam In Alaksa Traced To South Africa * AIDS Insurance A Moneyspinner In SA * New Home Insurance Policy For Landlords 
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| 3/14/2010 7:06:47 AM | |||||||||||||||||||||
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