Recent studies done by the South African Insurance Association (SAIA) paints a grim picture on the effects of road accidents on the short-term insurance industry, says Herman Moloi, General Manager at Absa Insurance Company (AIC).
The study done in 2011 concluded that the increasing number of car accidents, especially during the Easter and December Holiday periods, has had a devastating effect on human lives, and ultimately the insurance industry in South Africa.
Furthermore, according to SAIA, the last 10 years have seen a dramatic upsurge in accident related claims. Whereas 10 years ago, 70% of insurance claims were seen to be crime related through theft or high jacking, now more than 70% of insurance claims prove to be due to accidents.
“The number of accidents have also increased on a yearly basis, resulting in an estimated 15 000 deaths a year,” continues Moloi.
This has had a devastating effect on the South African industry as the number of insured cars in South Africa only amount to 35% of the approximate 12 million cars on the country’s roads. As a result the South African short-term insurance industry has taken a significant knock with regards to the rising amount of claims on the motor book.
Further analysis by Absa Insurance Company reveals a spike in claims, especially in late April and May as people return from their travels and submit more claims. Absa has noticed an increase of almost 10% in the amount of motor claims registered during the period March to May 2010 and 2011.
“This emphasises the need for adequate insurance cover to get you through any eventuality”. Furthermore, the Absa Insurance Company is supported by Absa Group which is the largest retail bank in terms of customer numbers, which means that we have years of expertise to assist our customers, added Moloi”.
Absa Insurance Company has urged drivers to be extra cautious before embarking on their trips especially during holidays such as the long weekend commencing this week. “At Absa, everyone’s safety is important to us. We have started a campaign to educate customers and drivers so that they can arrive safely to and from their holiday destinations,” says Moloi.
Absa Insurance company has teamed up with a number of partners to increase their customers’ safety. ”We have for example collaborated with the Zwartkops Driving training school where customers can receive advanced driving training course at a discount. These courses are approved by the AA. Customers can also get a free safety inspection at any Tiger Wheel and Tyre outlet. These are just some of the ways that Absa hopes to play a role in making travelling safer,” concludes Moloi.
Absa customers are also advised to keep their 24/7 Emergency Roadside number handy in case of an emergency:
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