Some SA insurers have lowered their vehicle premiums during the coronavirus crisis

CRA Explores Insurance – South Africa

  • Santam private and business clients will get back 20% of April’s vehicle premiums. 
  • Other insurers, including OUTsurance and MiWay, have lowered their premiums too.
  • Because vehicles are not on the road during the national lockdown, insurers can afford to give clients relief.

Santam will refund 20% of motor premiums paid in April to all its personal and business clients.

The money – which comes to R155 million – will be paid to all clients with active policies during the course of May, into the bank account that pays the premium.

As the national lockdown keeps vehicles off the roads, there has been a reduction in “motor insurance risk exposure”, Santam CEO Lizé Lambrechts said in statement.

Santam has also offered R135 million in premium relief to qualifying Santam clients in financial difficulty – both individuals and small businesses, while small business suppliers will get R20 million.

Other insurers have also announced measures to ease the financial strain on clients.

Santam subsidiary MiWay earlier announced that clients will automatically get an average 10% reduction in their car insurance premiums during the month of April – which on Tuesday was increased to 17%.

OUTsurance lowered its car premiums by 15% for May, while Momentum short-insurance clients can get cash back (to a total amount of R26 million) early from their no-claims and safety bonuses.

READ | All the financial help available to South Africans during the corona crisis

Discovery Insure clients will receive a discount of 25% on their May premiums if they drive less than 500km in April. However, to qualify for the 25% discount, clients need to have Vitality Drive.

Clients of Naked Insurance – the Hollard-backed insurer which allows clients to pause their insurance cover via an app – can opt to go on CoverPause, and only pay 10% of their comprehensive premium – subject to them not driving the vehicle at all.

Santam’s Lambrechts says the group’s employees who cannot work during the lockdown have been granted paid leave.

Credit to BusinessInsiderSA.