Safire Insurance Newsletter 2015


November/December 2015
Drunk driving = no cover
With the season of year-end parties here again, may we emphasise that in addition to the serious legal implications of being found guilty of drunk driving as well as the risk of causing death and/or injury to yourself and others, there is the fact that insurers will not pay out for a claim should the driver be found to be ‘under the influence’. So if you get home safely despite over-imbibing and then find that your vehicle has been damaged – perhaps you don’t even remember if it’s your fault or a bumper-bashing at the party - there is no insurance cover. Insurance companies are tightening up on investigating details such as whether a driver was at a party beforehand or when the damage is presumed to have occurred. Don’t take a chance, it’s simply not worth it. Call a taxi, sleep over, or select a designated and responsible driver before the celebrating begins. Wishing you all a happy, restful and safe festive season.
Strict enforcement of the law
A KZN insurance broker has been slapped with a hefty R150 000 fine by the Financial Services Board (FSB) over a ‘misunderstanding’. Advocate Matome Thulare, head of the FSB’s FAIS enforcement department, says, “The penalty represents the amount of commission earned by the broker off the policies and does not include a further penalty. We have accepted that there was no malintent”. Thulare explains that “the Registrar took into account that the contravention was as a result of a misunderstanding...Generally we want people to appreciate that these laws must be observed. It can’t just be a matter of ‘I didn’t know’. Where there has been gross misconduct, the FSB will not offer an adviser a second chance and will have them debarred from the industry”. The broker describes it as “an expensive lesson”.
To read more…
Sad loss but a lasting legacy
Two people who were both influential figures in the history of Safire have recently passed away. David Earl (seen here) had been a Safire board member since the company’s inception in 1987, while Walter Redinger was a founder member of Brokoop. Their loss will be sorely felt. Our sincere condolences to their families.

Identity theft warning
Having your wallet or handbag stolen is a nightmare, entailing the cancelling of various cards, standing in lines to get a new ID document and driver’s licence, and other inconveniences. But worst of all is the possibility that criminals are able to steal your identity, simply by adding a new photograph to your ID book. They then use your ID number to buy on credit and take out loans without repaying them, leading to you being unwittingly blacklisted at credit bureaus, which can take months to sort out. Approximately 3 600 such cases were reported last year and it is speculated that numbers are set to increase. “Customers need to be on their guard,” said Nitesh Patel, Head of Customer Financial Solutions, Personal Banking at Standard Bank.
To read more…
Dark data blockage
Back-up and recovery company Veritas Technologies claims that a vast mass of public and private data is clogging up IT storage facilities at companies worldwide. Apparently businesses in Africa, the Middle East and Europe have created a so-called “databerg”, a massive block of “dark, useless and expensive data” – data which is collected but unused. The report says that local companies have one of the third highest rates of ‘dark’ data stored in their corporate networks and 58% of data held by South African organisations would be unknown to IT professionals. This could include anything from staff holiday pics to pirated content‚ creating a high risk of non-compliance. The study also reveals the discipline of South African employees is one of the worst in the region.
To
Festive season security
With the festive season approaching, it’s a good time to check home and business security systems, especially if you are going away or closing up for the holidays. Security companies are always busy at this time, so call them before the rush. They can also offer advice on any upgrades that might be necessary. Security companies waste many hours attending to false alarms triggered by curtains billowing or pets locked inside. Beams can be activated by sudden changes in temperature through open windows, while waving vegetation can trigger external beams. Ensure all doors and windows are closed and pets are outside before activating an alarm system. Be sure to have clear roadside/street numbering so that emergency services can find your property.
Read more security tips here...
Supporting charity through golf
The Sunshine Coast Charity Trust (SCCT) raises funds for impoverished individuals and communities along the Sunshine Coast of the Eastern Cape. Safire once again supported a SCCT golf day arranged as a fundraising event, with one fourball comprised of Pieter Minnie, Safire’s broker consultant in the area, and Juan Haggard (AHB Brokers), Philip van Rensburg (Algoa), and Marc Bradley (Integrity – Queenstown). A second fourball included Safire Dairy clients, seen here (left to right): Simon Matthews (client), Andrew Murray (Dias Insurance Brokers), Norman Smith (client), and Dave Cordner (a friend). Read more about the Sunshine Coast Charity Trust
To
Carter High pupil excels
Safire aims to support and reward students with outstanding performance and a history of excellence – much like Safire itself! One such student is Kevan Du Plessis, a student at Carter High in Pietermaritzburg who recently achieved second place in the school’s 2015 annual academic awards for academic honours and outstanding effort. Congratulations Kevan, you have certainly rewarded our investment in you!
Why claims are rejected #19

The role of the office of the Ombudsman for Short-term Insurance is to provide an independent, fair and cheap dispute-resolution service to the public when they have issues with decisions made by their insurance company. Disputes frequently occur over what is a ‘fixture’, and which is an ‘immovable’ or a ‘moveable’ item. Homeowner’s insurance covers the insured for permanent fixtures only.

Movember scores
for a good cause

In their 2014 (up until April 2015) global campaign to highlight men’s health issues such as prostate and testicular cancer, the Movember Foundation raised $105.1 million AUD from 719,217 registered participants. That converts to approximately R1 billion at the current exchange rate.
To

Ever found it helps to give something electronic a knock when it won’t work? This is called ‘percussive maintenance” and usually only has a short-term effect, temporarily restoring connections that might have become broken or loose over time. Try cleaning the contact points or insert new batteries, before corrosion affects the other parts.

Education and work-related qualifications really do make a difference. Recent studies have revealed that the unemployment rate for adults with qualifications less than a Matric education is 29%. This figure drops to 27% for those with a Matric. For those with a tertiary education the unemployment rate is 11%.

Festive lights

In the USA, lights and decorations on homes is a major part of the festive season, as the attention to detail of this home’s lights goes to show. Located in San José, this house was featured on ABC’s Great Christmas Light Fight show. The music is the Star Wars theme...very topical as the new Star Wars movie, The Force Awakens, is set to open in December.
To view ...

Economic Tidbits
Economic Tidbits
Economic Tidbits
• R30 billion – what wasteful government expenditure on catering, travel and consultants cost South Africa in the 2013/2014 financial year. Under strict instructions from Finance Minister Nhlanhla Nene, the Treasury has rejected 39 of 56 applications asking for exemptions to austerity measures, including requests for alcohol at Christmas functions, fancier cars, more expensive hotel rooms and business class travel.

• 12.6% to R189.2m – the rise in the nine months to September of credit card fraud in South Africa.

• 9,9% - the expected decline in festive season spend in South Africa this year in comparison to 2014 according to research group Deloitte. Spending in Greece and Russia is also expected to decline while the UK, Germany, France and Spain are expecting slight increases.

• R2,3 trillion – what the National Treasury estimates SA’s debt will climb to by 2018/2019 from R470bn in 2005/2006. Over the next three years, 11c of every R1 treasury receives in taxes will go towards servicing SA’s debt.

• R241 000 per annum – the average salary in government versus
R196 000 per annum in the private sector. Middle-class taxpayers in government have been earning salary increases at a rate of inflation plus 3% for many years and have been promised similar increases for the next three years.

• 45% - the percentage of South Africa’s entire short-term insurance industry made up by motor insurance which is likely to be severely impacted by the weakening rand.

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