Industry awards Santam for pioneering low cost insurance offer

SA's largest short-term insurer, Santam, received a 'Pioneering Award' at the South African Insurance Associations first Financial Sector Charter Awards Dinner recently in recognition of its innovative low cost house insurance offer.

Santam was the first in SA to bring a charter-designed product to the market when it launched its low cost house and contents cover in Soweto last March.

According to Leila Moonda of SAIA, the aim of this awards ceremony was to recognise excellent efforts and achievements in the short-term insurance industrys quest to create a financial services sector that reflects the demographics of the country.

"Santam has successfully contributed to the establishment of an equitable society by effectively providing accessible financial services to lower income groups, previously not provided for in terms of household cover", says Moonda.

Kobus Olivier, Head of Alternative Distribution at Santam says, "We aimed our low cost house cover at those living in standard construction or formal homes up to the value of R200 000, as a pilot in Soweto in March 2006 and we are currently rolling out the product to the greater Gauteng.

"The product covers homes and their contents comprehensively and includes cover for all natural disasters, fire and theft. It also covers damage caused during riots and strikes.

"Premiums range from as little as R15 to R240 per month, depending on the value of homeowners property and possessions. Personal liability cover up to R100 000 is included free of charge with all policies.

The product range will also be extended to include supplementary products such as legal expense insurance, personal accident and funeral. 

"Our low cost insurance products have been developed to fulfil our ongoing commitment to providing accessible insurance products that suit the individual and specific needs of all South Africans," Olivier adds.