Toll fees will have an effect on road users safety says insurance expert

The battle to change proposed draconian toll road fees has been taken up by an insurance expert who says the measures will not only take a chunk out of everyone’s budget but will also result in even higher road accident statistics while threatening the livelihood of SMMEs and smaller entrepreneurs who form the backbone of business in this country.

Outspoken Jason Grove of Roxsure Insurance Brokers has sent a letter to the Minister of Transport pointing out that 70 per cent of passenger vehicles on the road do not carry Third Party. “The further drain on already tight budgets will result in even less people taking cover and if their vehicle is seriously damaged or written off in an accident, many will have lost the means of earning a living,” he says.

Grove points out that South Africa as a country is virtually the exception when it comes to Third Party being compulsory. “There will be widespread benefits if it is introduced and vehicle insurance premiums will drop from a presently high level as the burden is shared by all. Vehicles will be properly repaired under supervision resulting in more roadworthy numbers on the roads.

“Exempting taxis from the tax will only acerbate the situation as they are among the worst offenders when it comes to accidents. In most cases it is impossible to retrieve anything from them and this in turn drives up insurance premiums.

“A more practical solution is to give a rebate to all those carrying Third Party insurance when using toll roads. In this way the insurance would be funded by those using the roads the most.”

He says that in the event that an equitable solution is not found the insurance industry should stand its ground in opposing the measures. “The authorities have given way to the taxi industry as they know that the highways will be brought to a standstill. If we all took the same approach leading a campaign on behalf of the 30 per cent of South Africans who carry insurance, we could also bring about change. It is time insurance companies, and others, stood up for their clients.”

Grove also recently led a campaign to have Third Party insurance made compulsory in the country which resulted in the Insurance Ombudsman Christelle Fourie, MD of MUA Insurance Acceptances calling for the urgent introduction of Third Party insurance. “Compulsory insurance is critical for the motor industry as it will ensure an element of stability, allowing more repairs to be carried out, with the result that more of the vehicles on the road will be in an acceptable and roadworthy condition,” she pointed out.

Grove closing by saying that short term insurance is one of the key factors providing stability during difficult economic times. “Even though a policy holder may not have to make a claim, he or she knows that the business, home and car are protected as pillars supporting the day-to-day activities that make up people’s lives. In this economic climate the Government should ensure that this stability is protected and one of the ways is to institute a compulsory Third Party insurance.”