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Actions speak louder than words

30 August 2010 | People and Companies | News | Gareth Stokes

Love them or hate them, the direct insurers are doing their part to contribute to a safer environment for all South African road users. And while they’re not the only short-term insurers doing good for the community, they’re certainly spending more money to make sure we get to hear about it. The direct crowd – too often under scrutiny for their “broker bashing” television and radio marketing campaigns – have excelled in recent weeks.

A feel good television campaign run by OUTsurance, for example, focuses on various community improvement projects tackled by their caring staff. The PR return from these initiatives adds to the goodwill generated by their ongoing Pointsman programme. As part of their visible public service initiative the group sponsors a number of branded traffic signallers who help out when traffic lights go down. We turned to the consumer website hellopeter.com for a typical motorist’s response: “Lo and behold there was an OUTsurance Pointsman directing traffic in the hectic rain… It was unbelievable to me that an individual would put his life at risk for us motorists rushing to get to work”. Late last week we read an article about a Dial Direct project that raises the bar for the direct insurers.

A private public partnership that works

The group’s “pothole brigade” writes Celinda Groenewald in Rapport, fixed more than 220 potholes on Gauteng’s provincial roads in just one month. That’s an impressive average of more than 10 potholes per working day and the kind of community service that gets you loads of mileage, if you’ll pardon the pun. The team from Dial Direct has partnered with Trafficare and the Gauteng department of roads and transport to make the country’s roads safer to use.

Their solution is built around a mobile road maintenance vehicle known as the Jetpatcher. Originally built in New Zealand, this type of machine has been deployed successfully for more than 20-years in 15 countries around the globe. The machine apparently cleans each pothole with a couple of blasts from a high pressure compressor, before applying waterproofing and ramming in new tar. It sure beats the “bucket and stick” approach we’ve seen applied in some of South Africa’s rural municipalities!

Good idea or not, the long-term success of the undertaking depends entirely on government’s willingness to relinquish control over aspects of road maintenance. We recall an article in our local paper documenting how a Good Samaritan was threatened with legal action for plugging a few holes in his street. Dial Direct is currently waiting for the Johannesburg Roads Agency and the Tshwane municipality to give approval for the project to be expanded. Says Bradley du Chenne, spokesperson for Dial Direct, “We hope they give us the green light, because we’ll quickly be finished with the provincial roads, and want to get busy with the city areas before the rain sets in.” The group says it hopes to expand its operation from the single rented machine currently in use.

More innovation required

If each and every short-term insurer in the South African Insurance Association (SAIA) stable started similar initiatives they might be able to improve the profitability of the short-term insurance books they’re so concerned about. Imagine 10 privately sponsored Jetpatchers loose on Gauteng roads. We could eliminate pothole related accidents in a matter of months…

What if the insurers partnered with the Metro Police to install privately sponsored traffic cameras on stretches of roads and intersections with high accident rates? In today’s computer age these privately sponsored “traps” could seamlessly integrate with existing Metro systems and make overall traffic law enforcement more effective.

But we’re paying already!

There are arguments against spending private money on road rehabilitation and other traffic improvements. Private and corporate citizens alike are taxed to the hilt for the benefit of a working public sector. We expect roads to be maintained and critical services like water, sanitation and electricity delivered – no questions asked. But government is failing in many areas. Besides, spending a couple of thousand rand on fixing potholes or policing accident hotspots to prevent motor accidents makes perfect business sense.

Editor’s thoughts: The difference between a public and private sector initiative centres on productivity. Take a team of eight men fixing potholes as an example. If you up their daily “quota” form eight potholes to 10 you could save the taxpayer millions of rand on the actual repair bill – and save millions more in preventing road accidents and the resulting hospitalisation and death. Is the Dial Direct “pothole” campaign commendable – or do you view it as a way to score “cheap” PR points? Add your comment below, or send it to [email protected]

Comments

Added by Butana Nkosi, 12 Jan 2011
It's a fantastic initiative for Gauteng people from the safety point of view. It will be in a small but significant fashion minimise road accidents. Yes, Government is in partnership, however, it should be its responsibilty to ensure that our roads are safe. This initiative should be a short term soultion with the view that Government will takeover with full steam going forward. We however need to examine the quality of the products put on the roads. We have lots of poor quality materials used for road repairs and maitenance. What are the chances of the potholes resurfacing? This is what we are experiencing in our areas.
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Added by Patrick King, 12 Jan 2011
The Black Bitumen Association ( BBA )welcomes the initiative by Dial Direct and government.It will minimize road carnages and unnecessary claims. Cheap Cold mMix products used to treat potholes are a cause for the crisis we are currently experiencing in our country with potholes in our country.Agreement SA with the Technical Task Team has developed a criteria for the assessment of Cold Mix to ensure that quality products are used on our roads.This initiative with the state of the art technology should not lose site of using quality road repair material to ensure sustainable road repairs. As the President of BBA I encourage all Cold Mix manufactures to have their products assessed and certified by Agreement SA.At the moment all of them are not certified.
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Added by Basie, 30 Aug 2010
Ag Shame are they so desparate to win over a few clients and lick some government a&&e& in the hope of obtaining WHAT We are paying taxes on petrol and every other means that they can steal from us, for good roads, but then some A$$ 0 like malema is appointed to build those roads at exorbitant cost only to fall apart a couple of months down the line
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Added by CYNICAL SIMON, 30 Aug 2010
The actions taken are commendable but the effect it seems to have on Government is increased demands on more volunteers and less accountability on themselves.If all these maintenance jobs are to be done by volunteers what do we need Government for?
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Added by Wynand, 30 Aug 2010
I think it is a great initiative. So what if they score a few PR points. Hopefully it will show government that it is possible. If Government employees will only work as hard as they can strike. If only they can spend the time that they are fighting about pay to rather be productive to earn and deserve the pay they receive. Productivity and effectiveness at the end of the day is what it is about. Until we start to realize that demands and freedom to strike is linked with responsibility. Employees and managers should start to take responsibility for they actions and in-actions.
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Added by Grumpy, 30 Aug 2010
Well, if you want to promote your company then do it the way you'll get good returns and that is just what OT did. Make no mistake, I don't like them but give the Devil's its due. Why couldn't Santam, M&F and the rest think of this? Because they are used to no competition and only rake in the pounds. Time the leading insurers get a wake up call.
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Added by McT, 30 Aug 2010
It is great to see the actions of Outsurance ("OT"), Dial Direct ("DD") and others taking these worthy initiatives. I hear of traffic lights out on an intersection I must use and hope to see the OT points-people on duty. I like the idea that insurers should contribute to society and involve themselves in worthy projects, which give back to the community and improve their own profitability. However, my concern is that the more the citizens (corporate citizens included) of South Africa step in and fulfil the role which our Government, Provinces and Municipalities should be doing, the greater the expectation of the authorities will be on the citizen to continue to fulfil these roles. And what happens when DD decides to move onto another project? When our roads deteriorate and got to ruin, do we blame the authorities or DD? Should DD get negative publiticity for either not doing filling potholes or for a fill that failed and caused a fatal accident? Then there's the risk of the authorities amending their budgets and taking money out of transport (in this example) and moving it somewhere else. If DD stops filling potholes, our authorities will have no money to fix/maintain the roads as happened recently in Johannesburg. Who cops the blame? I tell you it'll be the insurance industry and not the authorities whose function and role in society it was in the first place. Commendable, DD, but I think perhaps this creates greater problems.
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Added by Jan Schubart, 30 Aug 2010
I wish them strengh to their elbows. For my money, fire the entire Jhb Road Agency (and SANRAL for that matter) and let Outsurance manage their department. Same with Dial Direct, euthanase the government pothole fixers and let the insurers get on with the job. You have hit the nail on the head - anything to do with governance is based on income obtained and everything related to real service and community well being in the private sector is dependant on productivity, a word missing from all National and Local government vocabularies. I support the initiatives 100% and gladly grant them whatever publicity/marketing they get out of it.
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Added by Konnie, 30 Aug 2010
Althought highly commendable to repair roads and direct traffic, the problem is that the more the private sector do such things at own cost (which by the way is been paid by the policy holders - thus an increase cost onto the policy holder), the less government (local, provincial, national) will do. Therefor, the more money the government will have available to steal, embezzle and mismanage. If people by now does not know what the real problem is (namely inexperience, incomponent, underqualified people in senior government positions with no work ethic), nothing is going to improve.
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