Microdot law may result in reduced motor insurance premiums
Amendments to the National Road Traffic Act that require all new vehicles registered in South Africa as of 1 September 2012 to incorporate Microdot technology is a hugely positive step towards the identification and recovery of stolen vehicles and could b
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who welcomes this long-awaited and necessary legal stand against motor vehicle theft and the illegal spare parts trade in South Africa.
“The recovery of stolen vehicles is a huge problem in South Africa, with statistics from Business Against Crime South Africa (BACSA) revealing that an estimated 90000 cars to the value of R9 billion are stolen or high-jacked every year in South Africa and around only 43% of these cars being recovered.”
Fourie says that even when vehicles are recovered, current identifiers such as Vehicle Identification Numbers, engine numbers and license numbers have been removed making it almost impossible to return the car to the original owner. “As a result, cars to the value of R1 billion are destroyed annually by the South African Police Service.”
A study conducted by BACSA found that the recovery rate of cars with Microdot technology is 91%, says Fourie.
“Only one dot is required to trace the owner, whose details are registered on a national database,” says Fourie. “The Microdots are also applied both covertly and overtly, making it far more difficult for thieves to remove or conceal the microdots, or strip parts of the car for resale.”
Once the Microdot technology has been applied, the vehicle is fitted with a warning sign which acts as a visual deterrent to would-be criminals. Microdot manufacturer DataDot Technology South Africa estimates that Microdot-fitted vehicles are 50% less likely to be stolen than those that are not.
The technology involves the spraying of new vehicles with thousands of 1mm diameter-sized Microdots onto a minimum of 80 different parts of the vehicle. Each Microdot contains a microscopic 17-digit laser-etched VIN and personal identification number (PIN), which allows for the vehicle to be traced back to the registered owner. The Microdots are only visible under a ultra-violet light and visible through a magnified lens.
“It is possible that vehicle owners who utilise Microdot technology could benefit from reduced car insurance premiums in the future, as the risk of theft is reduced and the rate of recovery is significantly higher if the vehicle is stolen,” said Fourie.
“The technology is already supported by the South African Insurance Association (SAIA) and it is a good idea for consumers to speak to their financial adviser to discuss the benefits of having their vehicles fitted with Microdot technology and possibly benefit from a reduced premium,” concludes Fourie.
