Safire Insurance Newsletter 2014


April 2015
Seat belt safety
Statistics indicate that our negligence is killing our children: road fatalities are the country’s main cause of death in children under the age of 12. Unfortunately, it isn’t illegal to allow a child to sit in a car unprotected: the National Road Traffic Act doesn’t specify that children under the age of three must wear a seatbelt, only adults. There is also no rule against children older than three using the front seat. Adults set a poor example, with only 10-15% of front seat passengers wearing a seatbelt, even though passengers tend to come off worst in a serious accident, suffering the highest percentage of road accident fatalities (37%); drivers account for 29% of fatalities. We owe it to our children to ensure their safety in a vehicle: research in the USA shows that using a car seat reduces the risk of death among babies by 71% and for toddlers four or younger by 54%.
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Supporting children's smiles
Safire is sponsoring KZN sugar cane farmer Kyle Dohne (28) in his attempt to break the world record for the longest distance paddled non-stop in the open ocean in 24 hours, to highlight the Miles for Smiles Foundation. Part of Kyle's journey will also involve paddling for five days between Maputo and Durban, the first documented paddle between these two ports. Kyle hopes to raise awareness of the charity while also raising funds for 100 operations to correct the cleft lips and palates of 100 children.
To read more…
Successful recovery
Safire has been engaged in a recovery action against a major corporate timber grower for fires that spread from their property to many other landowners, of which four were Safire clients in 2008, when the fire occurred. We are delighted to announce a successful outcome has been reached, resulting in a substantial refund to our reinsurers, thereby improving our loss ratio to them and assisting in renewal negotiations for the coming year.

Safire’s aerial support
Safire reminds its sugar cane clients that it provides aerial bombing cover as an optional extension to its sugar policy. It is important to note that the cover should only be opted for if the client is a member of the relevant aerial bombing association as associations are not allowed, in terms of their constitutions, to provide aerial support to non-members. For cane growers who do not insure with Safire, we would welcome the opportunity to provide you with a personalised quote according to your individual needs and risk appetite, including ways to minimise the cost of premiums. Contact Ruth Bezuidenhout, General Manager of our Crop Division, on 083 631 1264 or Gareth Smallbones on 083 384 4788.
Safire Berg 100
The Safire Berg 100, now in its fourth year, is considered one of the country’s toughest single day MTB events. This year the 100km race, which took place on 28 March, ran from Himeville to Nottingham Road (the start and finish points alternate between these two villages each year). With long climbs and descents, magnificent rural scenery and a fast pace, this race is used by many riders to prepare for the Sani2C event. This year’s winners were - Men’s 1st: Leeroy Emsilie (03:25:47), 2nd: Jaco Pelser (03:26:01), 3rd: Mathew Goetsch (03:29:21) and Ladies - 1st: Jeannie Bomford (03:31:18), 2nd: Heidi Dalton (04:06:29), 3rd: Cindy Theunissen (04:10:38).
Why claims are rejected #12

One reason why motor claims are rejected is when claimants hide the truth from their insurers. For example, claiming that a vehicle is parked securely at night (in a garage or inside a secure property) when in fact it isn’t. If a vehicle is stolen that is then found to have been regularly parked in the street at night, this might lead insurers to contest a claim, according to the Ombudsman for Short-term Insurance, who provides an independent and affordable dispute-resolution service to those contesting decisions made by their insurance company.

SA’s significant insurance industry
Insurance for all wheels
Check your
The South African insurance industry contributes more than 15% to the country’s gross domestic product (GDP) through premiums, making SA the country with the second highest insurance penetration globally. Our insurance market accounted for approximately 75% of the total premium written across Africa in 2013. At $72.4 billion, insurance premiums across the continent accounted for slightly more than 3% of the world market.
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A court in Brussels has ruled that any moving vehicle on public and private land should have motor insurance, including wheelchairs, golf carts and ride-on lawnmowers, after a worker went to court having fallen from a ladder when it was hit by a tractor. The ruling could have "massive consequences" for EU insurers, warns a representative of the Association of Motor Offence Lawyers.
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Air conditioners make our summers bearable. Now that the months are becoming cooler, it’s time to think about having your air conditioners serviced. Filters ensure that the air blown out is clean and germ-free, but without proper maintenance, the damp and warm air conditioning system can become a breeding ground for mould and bacteria, which are then circulated through the home or office.

Make a note

It might be months away, but make a note that the ultimate MTB family fun day, the Safire Baynesfield MTB Classic, takes place on Sunday 14 June this year. Celebrating the special relationship between kids and their dads, this popular event has been planned for the month of Father’s Day (21 June), so don’t miss it. This clip is guaranteed to get even non-riders fired up and ready to race! With distances of 10km, 20km, 45km and 65km, plus a trail for runners, there’s something for everyone. Have a look...

Economic Tidbits
Economic Tidbits
Economic Tidbits
• R3,66 billion – what insurers have set aside in provisions for the recent Germanwings crash in the French Alps that killed 150 people.

• 10% - how much Eskom’s power cuts and electricity shortages have stifled the country’s growth and investment.

• R7 billion – what it will cost Eskom to service the interest on its many bank loans this year.

• R2,2 trillion- what the life insurance industry held in assets at the end of 2014, a healthy increase from the end of 2013

• 1 535 to 2 390 – increase from January 2013/2014 fire season to this January in wild fires reported to the Goodwood Fire Station. Insurers anticipate multiple claims after devastating fires in the Western Cape.

• $1 billion – global cost of oil spills. With 5000 oil tankers passing through our waters annually, SARS looks to impose spillage insurance on oil importers.

• 7,9% versus 19, 5% - global average versus the South African average percentage cost of the value of sending remittances in the third quarter of last year. The Ombudsman for Banking Services is calling for the introduction of debit insurance.

• R28,4 billion- what SA’s top five long term insurance companies earned last year.

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