Is your vehicle tracking system a fraud?

Some vehicle tracking and recovery systems are nothing more than fleet management systems that are not capable of recovering stolen vehicles.

So says Steffen Gilbert, Santam's Chief Executive. "The most incredible claims are made about how the system will trace a vehicle and how exceptional the operator is in reclaiming the vehicle once it has been traced. "

"But as soon as the system is subjected to the necessary tests and evaluations, problems arise and the systems are shown to be inadequate."

Gilbert advises that people must choose a tracking system that has been approved by Vehicle Security of South Africa (Vesa) on behalf of the South African Insurance Association (SAIA).

"These institutions have the technical expertise to make the correct decisions."

Gilbert says that most of the systems classified as "tracking and recovery"

systems are in fact fleet management systems that enable clients to exercise proper control over their vehicle fleets. Such systems provide the fleet owner with information on, for example, speed, oil pressure, routes taken and even unplanned stops along the route.

"Santam - and other insurance companies - does not give a premium discount on such fleet management systems because, through efficient management of his fleet, the client in fact earns a no-claim bonus."
 
According to Gilbert, the question that is continually raised by new vehicle tracking entrants to the market is: What premium discount will the insurers offer?

"What often happens is that as soon as insurers are not prepared to offer a discount on the client's premiums, the product vanishes from the market without a trace.

"If one bears in mind that only about 30% of registered vehicles are in fact insured and that these owners will suffer the biggest loss if their vehicles are stolen, it is logical that this will be the preferred market for promoting such products."
 
Gilbert says a good tracking system must be trusted by the insurer and the client, the operators must be financially able to continue operating in the foreseeable future, and must be in a position to expand their network.

"What is more, once a stolen vehicle has been traced, the tracking company must be able to send someone out to retrieve it."