Posts Tagged ‘Vehicle insurance’

I’m sure you’ve read reports about the increasing numbers of stolen 4×4′s, particularly the Toyota Fortuner as well as Toyota Hiluxes.  

Just recently, here at 4×4-insurance.co.za we posted a warning about these 4×4 thefts and suggested some practical ways in which owners of the affected vehicles could reduce the risk of becoming another 4×4 theft statistic.

For South African 4×4 owners, the future may seem a little brighter now as new technology to recover stolen cars makes its way into the market.

Microdots, which are smaller than 1mm, are laser-printed dots that are superimposed across the body of the car and contain vital vehicle information that can be used to determine if a vehicle is stolen or not.

We support the Business Against Crime South Africa (BACSA) initiative to get the microdot technology rolled out across the country in an attempt to curb the alarming number of hijackings and vehicle thefts.  insurance premiums are likely to decrease if we are able to reduce the number of thefts and hijackings of 4×4′s in South Africa.

Theft of vehicles is big business in South Africa.  Statistics reveal more than 90 000 vehicles worth more than R9-billion are stolen every year.

BCSA’s Microdot project manager, Fouche Burger, told SA-The Good News that the crime-fighting organization is waiting for the government to approve the legislation authorising the use of Microdots by every vehicle manufacturer.

Burger says it won’t be long before police will start using the technology to identify stolen vehicles at road blocks. The microdots are too small to see with the naked eye, and can be identified by police when examining stolen cars using magnifying glasses and specialised equipment to see the microdots.  And the South African Police Service (SAPS) has announced that Microdots will shortly be compulsory for all new vehicles registered.

Already being used

As of 31 May 2009 over 370 000 vehicles in the country where microdotted by the following companies: Nissan, BMW, Avis Rent-a-Car, Toyota (on the Quantum minibus), SAPS, SAVRALA and Vesa, Burger revealed.

How does it work?

The process involves the application of approximately 10 000 tiny polyester or metal dots, each less than 1 mm in diameter and each containing the vehicle’s identification number (VIN) or a unique vehicle PIN etched onto it by a laser-etching process, as repeated lines of text.

The microdots are applied to 88 different locations on a vehicle. Discovering and removing all of them is practically impossible and any attempt to remove them results in the car’s body being severely damaged.

It also helps that the technology used to identify microdots is cheap and easily available, said Deborah Hunt, Media Liaison at BACSA. “Police can use a low-tech magnifying glass, which is cost effective”.

International statistics indicate that Microdot technology leads to a decrease of between 50 and 60 percent in the number of stolen and hijacked vehicles and an improvement of more than 55 percent in recoveries.

It is common knowledge that many of the stolen and hijacked 4×4′s are dismantled in chop shops and the parts sold as second-hand.  Microdots can be used in recovering components sold as used parts and this will certainly be a deterrent for hijackings and motor vehicle theft.

Related articles:

• Off-Color Cars Offer Effective Theft Prevention [Theft] (lifehacker.com)
• Why Car Thieves Are Male (freakonomics.blogs.nytimes.com)

Government recently announced plans to make third party insurance compulsory for all South African drivers. When this will materialise – nobody knows for sure, but the theory is a very sound one indeed.

Currently, it is estimated that of the 9.5 million vehicles on South African roads, only 35% are insured!  That’s a scary statistic.

At this stage, approximately 70 to 80%  of motor claims are as a result of accidents.

Here is a typical scenario:

• Driver A (who is not insured) drives into the back of Client B’s vehicle (who is insured).
• Client B claims from his insurer, who repairs his car.
• B’s insurer, tries to recover his losses, only to find out that Driver A is not insured, or is unemployed, or lives in a squatter camp with nearly no earthly possessions and so Client B’s insurer gives up on trying to recover his losses.

The nett result? Insurance premiums increase.

Who pays? Client B (along with all those other 34.99 % of vehicle owners who diligently pay their insurance premiums every month).

The situation will be much better if more vehicles are insured, as the burden will be less on insurers who, at this stage, are carrying more than their fair share.  Motor insurance premiums should decrease, and the sustainability of the insurance and even the motor industries will improve.

The idea is great, and well overdue too.  It’s a step in the right direction by our Government and Department of Transport.

The BIG questions are…

1) Who will administer the compulsory Third Party Insurance scheme?

and

2) How will it be implemented?