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Value of Insurance in trying times

24 July 2020 CTU

Given the uncertain and challenging times 2020 has brought with it, individuals, entrepreneurs, SMMES and corporates have all cut back on essentials and have tightened up their belts once more.

A few of these essentials include medical expenses and insurance as a result of dwindling savings; employee benefits and, even grocery bills have had to face the proverbial chop. While the world perseveres through this challenging time, the one essential that shouldn’t be cut from any budget is vehicle insurance, particularly if your vehicle is your main source of income or, if you are an owner of a small business. Insurance is vital for your financial protection particularly if you own a minibus taxi, bus or e-hailing vehicle.

Uncertain times should not leave you caught-off-guard or with a negatively surprising travel or transport experience. Insurance is key during economically trying times. “Passenger and driver safety must remain top of mind regardless of the times we find ourselves in. Cutting back on insurance benefits and liability cover or, even eradicating it completely from your budget makes for more precarious times as a taxi or bus owner. Doing so could result in more debt and, in certain circumstances, compromising on the quality of vehicle parts and repairs should you require these,” says Oscar Shabalala, Business Development Manager at CTU, South Africa’s largest taxi insurance underwriter.

While it is understandable to adopt an attitude, which in fear, directs you to react by cutting costs; wisdom denotes pausing, acquiring all the facts and making a sound decision in line with your budget and the helping hand of your broker. “If you find yourself in a financial predicament, get in contact with your broker and express your concerns with them. Your insurance broker has your best interests at heart and is likely at the very least, to offer you a restructure of your cover or, help you in ways you wouldn’t have thought of,” says Shabalala.

Insurance should always be seen as a partnership. “Credible insurance companies value their policyholders, not just as clients but as people. Trying times should never place you in a panicked position feeling that you must cut back instead of choosing the route of consultation with your insurance partner,” he says. If you’ve recently purchased a vehicle and are in need of insurance, choose service providers who have a variety of budget-friendly options suited to your transport company’s needs. Don’t break the bank but ensure your transport enterprise never faces ruin due to an accident, an unpaid claim or even a lawsuit. Whatever you do, don’t cancel your insurance policy.

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