Universal Motor Cover in SA Still Far Way Off

August 4 - Last month, the government announced plans to introduce a universal motor insurance scheme to try and combat the growing problem of uninsured cars.

It is estimated that two thirds of the cars on the roads today are without cover.

However, while the idea may be a good one, the government is still very far from actually implementing the plan - even by its own admission.

As such, the Marketing and Sales Manager of insurance brokers, Glenrand MIB said that South Africans should be encouraged to take out proper cover on their cars.

"Universal motor cover would obviously be welcome in principle," said Mandy Barrett, "if only as a way of spreading risk across the entire vehicle population, thereby introducing economies of scale that theoretically could be passed on to motorists via affordable premiums,"

However, Barrett said that, realistically, there will probably be much opposition to such proposals "and even if it does come into effect, there's a long consultative process ahead before it becomes law."

"Accordingly," said Barrett, "motorists need to take matters into their own hands here and now by 'ensuring their insurability' thus brining as many as possible into their insurance net."

Barrett said that this was not withstanding the growing selectiveness with which the South African insurance world is prepared to cover drivers, bearing in mind that this country has one of the highest rates of accidents in the world.