Cape Town cycle tour riders urged to ensure insurance cover is in place

Christelle Fourie, Managing Director of MUA Insurance Acceptances.

On Sunday, 8th March 2015, more than 35 000 cyclists will take part in the grueling Cape Town Cycle Tour (formerly known as the Cape Argus Pick n Pay Momentum Cycle Tour), which routes the Cape peninsula - traversing over 109km. As part of the preparation, it is important that cyclists taking part in the race ensure that they fully cover themselves against any financial losses in the event of any accidents, theft and loss of possessions on the day of the race.

According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, most cyclists are often unaware that their expensive bicycles and equipment could be underinsured.

"When looking to insure valuable cycling possessions, it is important that cyclists don't automatically choose the cheapest premium. Insurance companies' premiums vary and the lowest premium doesn't necessarily offer the best cover."

Insurance premiums are calculated based on the policyholder's risk profile, permanent residential address and claim history, but the biggest cost factor is often the value of the bicycle - especially if this has been imported.

Fourie explains that the percentage ratio of insuring a bicycle can end up being more expensive than insuring other assets, such as cars and homes. "High valued cars can vary between 3%-6% of the value for an annual premium. In comparison, bicycles can vary between 10%-15% of the value on an annual premium basis, which is substantially more."

The fluctuation in the rand also has an impact on the replacement value of an individual's items, says Fourie. "Imported vehicles, high value bicycles and other assets that were purchased overseas increased as much as 30% in 2014. This directly impacted the replacement value of items in the event of loss or damage, with the cost of replacing the item often being substantially higher."

According to the South Africa Police Service (SAPS) crime stats, there was a total of 53 858 common robbery cases reported between 2013/2014, which includes the theft of items such as bicycles and sports related equipment.

Criminals often keep a close watch on sporting areas, such as bike trails, in an effort to try and steal items from unsuspecting victims. Fourie has seen a direct correlation to a high claim rate from active sports fanatics for items ranging from mobile phones to motor vehicles that have been lost, damaged or stolen.

She says it has become common practice for people who participate in outdoor sports activities to park their motor vehicles in unattended parking spaces and then leave the keys hidden on one of the wheels.

She stresses that cyclists should try and reduce the number of keys on their key ring, or alternatively use a saddle bag. "We have seen insurance claims being submitted in the past where a cyclist has left the key in the ignition while fastening the bike on the rack, making it very easy for the car thief to drive off. Leaving a stunned cyclist completely stranded without a car or bicycle."

Fourie adds that it is important that sportsmen remain vigilant of their surroundings during big sporting events. "In order to protect valuable personal possessions, it is essential that extra care is taken to avoid loss of items and potentially insurance claim rejections due to negligence. Some insurers even stipulate in the motor policy exclusions, such as theft cover of the vehicle is excluded if the ignition keys are left in or on the vehicle."

She explains that some insurers also have specific exclusions for cover of all sporting items while they are being used, while some insurers exclude theft of any sporting equipment that is left unattended during an event.

"Therefore, it is always important to check with your insurer what cover and exclusions are in place for your sporting goods, especially bicycles."

"The only thing cyclists should be worrying about on the big day is crossing the finish line in one piece. Therefore, making sure you are adequately covered is essential to the preparation for the Cape Town Cycle Tour," concludes Fourie.