The images of cars balancing by their axles on the ripped tarmac and taxis laying on their sides on the pavement after being flung in the air at Joburg’s Bree Street last week sent the vigilant motorist in me into panic overdrive.
I put myself in the shoes of the more than 20 motorists whose vehicles were severely damaged by the explosion that tore apart several roads near Bree Street taxi rank on Tuesday evening, leaving a trail of destruction that would take the government years to fix. The cause of the underground explosion still remains unclear although fingers have been pointed at illegal mining and an underground gas leak.
Hours after the incident I found myself going through my car insurance documents to check if I’m covered for unexpected disasters such as the one that befell those motorists in the Joburg CBD last week.
If we were to be honest with ourselves, hardly any of us ever pay attention to natural disasters and unexplained explosions when we take on a new car or even home insurance for that matter. Most of us are more worried about premiums and the “30-day car hire option” which are, unfortunately, the realities of life in SA because of high cost of living and unreliable public transport.
Insurance is necessary to protect consumers against unexpected disasters that can suddenly wreak havoc in their lives through the damage of their properties and/or vehicles. Consumers need to protect themselves and their assets against sudden catastrophic events.
Collin Molepe, the chief executive at Absa Insurance Company, says this journey to protection starts with selecting the right insurance cover that will help consumers recover and rebuild after an accident or an unforeseen event.
“While accidents and collisions are common concerns, it’s equally important to be prepared for unexpected events like natural disasters and/or man-made catastrophes. At Absa we advise consumers to assess their risks and needs. Consumers can start by assessing the specific risks they face based on their location, surroundings and vulnerability to potential disasters.
"Factors such as proximity to industrial areas, flood zones, tremor or earthquake-prone regions and other relevant hazards will determine level of exposure to risk and as such we help them understand the types of disasters their insurance coverage should protect them against,” said Molepe.
He said it was vital that consumers look for a reputable insurance provider that offers a range of insurance coverage and that consumers need to research and compare insurance providers to find one with a strong reputation for handling insurance coverage that matches their identified needs. Insurance providers that have a history of timely and fair claim settlements. Some of the tools to use in the research include HelloPeter and Google reviews.
A provider that offers comprehensive insurance coverage is essential when seeking protection, recommended Molepe. Some of the things to consider include one’s financial capacity and choose a combination of premiums and deductibles/access that suit one’s budget.
“Read the fine print before committing to an insurance policy, a consumer needs to carefully read the terms and conditions, including the coverage limitations and exclusions.
"Understanding the scope of coverage and any potential exclusions to prevent unpleasant surprises when filing a claim. Consumers need to seek clarification from the insurance provider should they be confused about what is written in their policy,” said Molepe.
Sakina Ntuli, King Price Insurance spokesperson, said it was important to consider the excess amount that one will have to pay when submitting a damage claim.
“But you can adjust this excess to increase or decrease your monthly premium. The higher your car excess, the lower your monthly premium, and vice-versa. You need to be able to pay your premium every month, however bear in mind that excess will be the first amount payable, in the event of a valid claim,” said Ntuli.
Apart from being 100% sure of the cover you’re accepting, Ntuli said it was utmost important to be honest when signing up for insurance.
“If the information you’ve given is found to be incorrect, incomplete or fraudulent, your claims may not be paid out, and your cover may even be cancelled. It’s also your responsibility to ensure that your premiums are paid in time and in full every month,” added Ntuli.
Molepe advised consumers to also review their coverage as life circumstances change and it is important to regularly assess the value of their assets and the potential cost of rebuilding or repairing their property (home, car or other assets) to determine the required coverage limits.
“Consumers also need to be aware that undervaluing their assets could leave them under-insured and financially burdened after an incident has occurred,” said Molepe.
“People need to understand the claim process. Familiarising oneself with the claim process of the chosen insurance provider is important. Consumers need to ensure that they know how to initiate a claim and the required documentation to make a claim. Knowing the steps involved and acting promptly can expedite the claim settlement process during times of distress.”
The Joburg explosion disaster also had significant impact on businesses operating along the affected area as some buildings were cordoned off for safety reasons, which meant that no businesses could operate.
Speaking to Sowetan sister publication TimesLIVE at the weekend, Insurance Claims Africa CEO Ryan Woolley advised businesses in the area to notify their insurers of possible business interruption claims as quickly as possible.
“In an unfortunate event such as the explosion in the inner city, a business would be able to claim against their insurance if they elected the Prevention of Access clause under their Business Interruption policy.”
He added that owners of the buildings in the area should conduct a structural evaluation of their properties, which would be covered under their building insurance policy.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.