For many motorists, purchasing vehicle insurance is an essential part of owning a car and is usually in place before the car even leaves the showroom floor. This is understandable considering the high number of accidents that take place on South African roads everyday.
Recent statistics indicate that approximately 14,000 people lose their lives in vehicle accidents on South African roads every year. Tens of thousands of others suffer severe and crippling injuries, making it clear that vehicle insurance is a necessity. However, this is not the case for over 65% of the total vehicle population in the South African market that are uninsured. Due to rising inflation and a decline in the consumer spending environment, many South Africans simply can’t afford it, creating an urgent need for innovative offerings that provide value to motorists who can’t afford insurance.
The good news is that the traditional insurance industry model is changing and today, it is no longer the only way that motorists can purchase insurance products. One of the most innovative solutions to enter the insurance space, is the Depreciation and Shortfall Protector (DSP), launched by Value Master Protector (VMP), a subsidiary of the Phik’a Group (Phik’a).
How can the uninsured market benefit from DSP?
DSP is a value-added product that covers depreciation and credit shortfall for motor vehicles, which, unlike what is currently available in the market, does not require underlying comprehensive insurance.
If you are uninsured and involved in a vehicle collision, DSP will settle the full outstanding amount owing on your vehicle at the date of total loss, including any residual/balloon payments.
Those who are insured, can enjoy additional cover amounting to the difference between the primary insurer’s payout and the showroom value of the car, protecting insured motorists against a shortfall that results from the depreciation in the value of their vehicle (that is, if the cover was taken out when the vehicle was purchased)
The minimum criteria for consumers, both private and commercial, to take advantage of this cover include:
1. The vehicle must have valid Mead and McGrouther (MM) code and retail value as per the TransUnion standards and should be registered as code 1 or 2.
2. The vehicle must be fitted with an approved tracking device supplied and maintained by a DSP approved tracking company (MiX Telematics), before cover incepts.
The DSP approved tracking device:
a. The tracking device is supplied free of charge to all vehicles insured by DSP.
b. DSP is responsible for all contractual and service level agreements with the approved tracking company to ensure customer protection and peace of mind.
c. The approved tracking company is responsible for ensuring that the installed tracking devices are always in good operational condition in order to optimize chances of recovery in the event of theft/hijacking.
d. The consumer is however, obliged to co-operate with the DSP approved tracking companies during the installation and maintenance of tracking devices – failing which DSP cover is automatically cancelled.
e. Customers are free to cancel the DSP policy without further obligations to keep or pay for tracking.
For more information, visit www.vmprotector.co.za