The COVID-19 pandemic has impacted every part of daily life; from sheltering in place to lost paychecks and it has emerged as a major threat to the already sluggish economy, with companies reporting reduced capacity due to the measures aimed at curbing infections. As virus infections continue to rise, some insurance companies have adjusted their benefits to exclude cover for the virus. While car insurance is no exception, the country’s leading insurance companies have adopted different approaches to personal and business eventualities linked to the impact of the coronavirus. .
It is crucial for consumers to re-visit their policy documents and find out from their providers how their lifes will be impacted during these uncertain times.
South Africa’s biggest short-term insurer, Santam, says paying large unexpected catastrophe-related claims is part of the game – and although this is frequently eating into its underwriting profits lately, it will not try to take short cuts. The insurer, which is owned by Sanlam, saw its basic earnings per share shrink 9% and its headline earnings per share – which exclude one-off capital items – decrease 1% to R20.69 because of another surge in claims.
Momentum says its life cover does not exclude coronavirus infections, which means clients’ policies won’t be affected if they contract the virus. “We are, and will continue to pay all valid claims. If a client dies as a result of contracting the coronavirus, the death claim will be paid.”
The biggest concern is that people don’t realise that this too will pass and once we back to our normal ways, our lives will continue as before and so should our insurance cover. While you can definitely reach out to your insurance company to see if your lowered mileage could mean a discounted rate, keep the following in mind: Don’t cancel coverage you’ll need in the future. Perhaps the most important thing for people to know is that they should keep their insurance unless they plan on giving up their cars.
With social distancing measures in place across the country, Status Insurance Brokers are making sure their employees and customers stay safe by keeping the claims process digital. With our hands-on process you may not see a change at all. Our full-service online app makes it possible for potential customers to find a no obligation free quote tool at their fingertips.
Only time would tell the extent to which the outbreak would affect business and the ability of existing policies to protect businesses from similar challenges in the future. The financial losses arising from the outbreak are likely to be felt for years to come. It will take a careful analysis of the relevant policies of a business to ascertain whether that business is entitled to indemnity under its policies for losses arising from the outbreak.
For those customers who are looking to save money on premiums contact us directly to discuss increasing deductible or reducing limits.