It has recently been reported that a new report assessing the impact of compulsory third-party car insurance in South Africa is set to be published very soon. It’s always a great idea to be covered by a good car insurance company, for all of those unexpected events in life.
This report, which concerns the issue of car insurance, is commissioned by The South African Insurance Association (SAIA), and its purpose is to address the ways in which Compulsory Third Party Motor Property Insurance will impact the roads in South Africa with regards to safety, and whether it will reduce costs related to road accidents.
This comes in light of the fact that the level of car accidents in South Africa has gone up, with The Road Accident Fund (RAF) apparantly spending up to R1.5 billion a month covering victims of road accidents in South Africa.
It has also been said that recent years have seen 70% of the total cost of motor claims in SA as being accident related, and also, as few as 35% of vehicles in the country are currently insured.
For this reason, SAIA has been pushing for the introduction of Compulsory Third Party Motor Property Insurance for a long time, with various discussions about this topic taking place. It was also reported that the association appointed Price Waterhouse Coopers to research the feasibility of the introduction of CTPMPI into South Africa.
Dawie Buys, the manager of Insurance Risks at SAIA, has said that once all information has been attained, the SAIA Task Team then will give the SAIA Board a report, followed by a full proposal which will be submitted to the Government for them to consider.
Buys was quoted as saying:
“We unfortunately will have no control over the normal legislation process and should Government and ourselves come to some agreement it is difficult to predict how long it will take to enact a law for the introduction of CTPMPI,” Buys said.
We will have to wait and see what the final report says!
