Remove insurance loopholes with VESA-approved security devices

Relatively low interest rates, tax cuts and higher salaries have increased South Africans' disposable income, so they're spending their spare change on the one thing they love above all else: cars.

And they're not cheap. A brand new car aimed at the lower-end market retails at about R68 000. That usually excludes the bells and whistles such as air conditioners, mag wheels, CD radios and leather seats.

Vehicle finance is then usually taken out, which takes a huge chunk out of motorists' monthly salaries.

With the prevalence of crime in South Africa, it becomes very important that people secure and insure their cars against theft and see that they meet insurance company requirements.

According to statistics released by the South African Police Service (SAPS), 140 000 cars are stolen each year. This number is quite high considering that a report released by the National Association of Automobile Manufacturers in South Africa (NAAMSA) indicated that 714 340 new vehicles were sold in 2006. Insuring vehicles to protect motorists'investment against risk such as crime is therefore vital in South Africa.

According to DataDot Technology, crime accounts for R1,5 billion in insurance claims a year. No wonder there is much fine print included in insurance policies. And insurers will often look for loopholes to avoid paying motorists in the event of a claim. For example, if vehicles are equipped with non-VESA-approved security devices, it is doubtful that insurers will pay out in full. And what would become of car owners should the insurance company not pay them out based on a technicality?

Make sure cars have VESA-approved security devices The most important requirement for insurance policies is that vehicles are fitted with anti-theft devices. This condition, coupled with the crime statistics in South Africa, meant that, in the past, many people with an interest in electronics installed and even manufactured their own security devices.

This situation is unacceptable to insurance companies as many motorists were left with broken-down vehicles due to failed systems. The industry was largely discredited, and that hurt reputable manufacturers.

This sparked the creation of VESA in 1987, a non-profit organisation that sets standards and lays down guidelines for manufacturing and installing security devices for vehicles. Insurance companies have since required that motorists have VESA-approved devices installed by VESA members.

That alludes to another problem that has plagued the industry. Many non-VESA affiliated fitment centres advertise that they install VESA-approved products. Having a product fitted by one of these centres can prove costly to motorists because although non-VESA affiliated companies may install ABS-approved products, the installation is not performed according to VESA standards. And that means insurers won't pay out. Poor installation can render good quality products useless. So what is taken into consideration when insurance companies specify products and fitment centres?

VESA-Approved requires...

* A product which is approved by the Accreditation Bureau for Security and Safety (ABS):
* An installation by a member of VESA in accordance with the latest VESA specifications; and
* A certificate prescribed and issued by VESA for the current year.

There are 535 VESA members throughout South Africa. They are authorised to fit products, issue certificates and inspect that vehicles meet insurance requirements.

A list of approved members can be found at www.vesa.co.za.