The heavy cost of road accidents during holiday season

Absa Insurance, one of South Africa’s leading insurers, has urged drivers to be extra cautious and put their safety and that of all passengers and other road users first as they depart for the upcoming December holidays. A recent study conducted by the Au

The study also indicates a steady rise in traffic crashes in South Africa, with a heavy cost to the South African economy. “Whereas the total cost of accidents to the economy was close to R14 billion in 1998, the estimated cost to the economy has grown to at least R157 billion in 2011, with some estimates as high as R200 billion,” says Van Staden.

Further analysis shows a steady yearly rise in the cost of fatalities on South African roads. “In 2009 the cost per fatality amounted to a Rand value of R1,232,898 but that number has risen to R1,385,284 in 2011. This has had a devastating effect on the South African short-term industry as the number of insured cars only amount to 35% of the estimated 10 million cars on our country’s roads. As a result, the South African short-term insurance industry has taken a knock with regards to the rising amount of claims on the motor book,” according to Van Staden.

“Given these statistics it is important for our customers and the public in general to obey the rules of the road and put their safety first. We have started a campaign to educate customers and drivers so that they arrive safely to and from their holiday destinations,” says Van Staden.

“Our customers are at the heart of our business and Absa is leaving no stone unturned to ensure that we make our customers’ lives much easier. Therefore, we have teamed up with a various nation-wide suppliers to increase customer safety during the festive season. Some our partners include vehicle tracking partners, to ensure a peaceful journey, as well as service centres where customers can have their vehicles checked and serviced before their departure.

Absa Insurance has also involved security companies which will ensure that customers’ homes are protected whilst they are away on holiday. “These are just some of the ways that Absa hopes to play a role in making travelling and holiday-making safer,” concludes Van Staden.