FAQs
Why is insurance so expensive?
Because of catoptric loss we have seen in KZN the premiums for reinsurance have gone up, this is affecting premiums of consumers directly. We also have a very small participation rate to the insurance market in South Africa. South Africa is seen as a high risk to international markets and this to contributes to reinsurance premiums.
Are my valuables in my car insured under my car insurance?
No, any item that is remove from your home will have to be specified under a section called all risk. We also have general all risk that will cover any item that does not store data. With the newer products in the market, it's possible to include most items with a very low premium.
Is it worth it to have tracker in your vehicle?
We will advise clients to install a tracker should their vehicle be limited or valued. Installing a tracker to save on premium is not accurate. Tracker will still end up costing more than what you are saving. Some insurance companies made a tracker compulsory, but with most insurance companies these days this is for the client to decide.
What is a loss ratio?
This is the ratio between premiums paid and claims (losses) paid. An example of this will be:
-
Paid – R1 000
-
Claimed (loss) – R500
-
Loss Ratio – 50%
Does claiming increase my premium?
If you have a claim/s and your loss ratio is still under 45% the increase can be eliminated, its where client see loss ratios of 60% and for more than one year or consecutive years.