Could your claim be rejected?

The Ombudsman for Short-term Insurance (OSTI) has clarified the difference between Private, Business and Commercial insurance. This differentiation is vital for the paying or repudiation of vehicle accident claims by insurers: if an insurable incident occurs at a time when the vehicle is not being driven according to the usage specified on the policy, the insurer may consider rejecting the claim. Information about the intended use of a vehicle is essential for insurers to determine the correct risk profile and to calculate the appropriate premium. Is your vehicle being used in line with the terms of your policy?

Noteworthy news in numbers

30 million: followers of the WWF, driving support of Earth Hour, which was first held in 2007 in Sydney to highlight environmental issues.

8: trends identified as a way we can "build back better" with enhanced socially and environmentally sustainable ways of working and living.

10 years: duration of the global biodiversity plan currently being negotiated by world leaders, which could be "another lost decade for nature".

Did you celebrate Earth Hour?

Earth Hour is celebrated each March around the time of the spring and autumn equinoxes in the northern and southern hemispheres respectively. This timing is to facilitate almost simultaneous sunsets in both hemispheres for the greatest visual impact of this global 'lights out' event that asks people and businesses to turn off their electricity for an hour. Started by the WWF, the world's largest independent conservation organisation, Earth Hour unites millions of supporters globally in calling for major legislative changes involving environmental issues. South Africa celebrated Earth Hour on Saturday 27 March between 20h30 and 21h30 - will you be joining in next year?

Fraud costs almost R7 billion annually

According to the SA Insurance Crime Bureau, up to 20% of the R35 billion paid out locally on short-term insurance claims in 2019 could have been fraudulent, and the South African Insurance Association estimates that almost a third of all claims 'have elements of dishonesty'. With the current strained economic situation, this figure is likely to have increased, with false claims on tablets, laptops and cellphones, fake retrenchments and UIF fraud on the rise. It costs us all, so report it - don't let insurance fraud go undetected!

SA property market trends

South Africa is experiencing some interesting new trends in who is buying property. According to the deeds office, buyers younger than 35-years of age now account for 43% of residential sales, up from 38% in 2019. More women are first-time-buyers, with men more likely to be repeat buyers.

The move towards greener financing

Floods, droughts, devastating wildfires across the world - the effects of global warming are having a crippling impact on financial institutions such as banks and insurers. The 2019 bankruptcy of the Pacific Gas and Electric Company because of the Californian wildfires is why banks are moving towards providing sustainable financing, treating climate risk not only as a reputational problem but also as a financial risk. At the end of 2018, the market for green and sustainable finance (green bonds, impact investing, microfinance and credit for sustainable projects and development) was worth $30.7 trillion (about R458 trillion). In the first half of 2020, more than $275 billion of new sustainable financing had been raised on capital markets, and it's a growing trend.

AARTO could see you losing your licence

The rolling out of AARTO (in three phases) in July this year could see negligent and reckless drivers losing their licences. Drivers can be penalised for speeding, ignoring road signs and running red lights. Here's what you need to know!

That's Life

Rather than making fallen leaves your neighbour's problem, use them as mulch to feed your garden!

The Insurer newsletter and the content of any article published herein, should not be construed as forming part of any insurance contract or policy nor as constituting any form of advice. It is aimed at providing an informal and informative read to the readers thereof. Whilst every effort is taken to attempt to ensure the accuracy and correctness of the information contained herein, Safire Insurance Company Limited does not give any assurance regarding such accuracy or correctness and accordingly does not accept any liability whatsoever for any loss or damage, whether direct, indirect or consequential, arising from any reliance placed in the information contained herein.