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Know your rights and duties as a policyholder

Written on August 10th, 2011 by MiWay
Categories: Library

It’s not hard to find stories about insurance companies that have treated their clients unfairly, collecting their premiums and then not honoring their claims. Ask around your friends and you’ll probably hear more than one story, even if you have never experienced this personally.

But there is good news: Did you know that the short-term insurance act means that as a consumer you have more rights and are better protected than ever before? Below are a few tips to help you understand your rights and how to exercise them. But more importantly also keep in mind your own duties and responsibilities as an insurance client. Sadly, many times people feel they have been treated unfairly when in fact they have not held up their end of the bargain.

How does insurance work?

Let’s start with the real basics: What is insurance really? It’s a deal between you and an insurance company, made so that you can replace or repair a valuable item that gets lost, stolen or damaged. The insurance company agrees to pay you a fair value if you claim; in return you agree to pay your premium to the insurance company.

Premiums are calculated based on the risk of a loss occurring: the higher the calculated risk, the higher the premium will be. Premiums are also individually calculated which means that the insurer not only looks at the item you are insuring but also the person involved. Combining the perceived risk of the item and the person, your insurer will give you a premium at which they are comfortable to cover you. This is why it is important to share info about yourself with your insurer, well aware that incorrect or incomplete information might affect your future claims.

You have the right to get what you pay for

As a policyholder and South African consumer you have the right by law to be treated fairly and with respect. Your insurer must serve you to the best of its ability. Basically, this means that if you are paying for insurance cover and it is detailed in your policy schedule, you must receive it.

You have the right and the duty to be fully informed

Your insurer must, by law, offer you financial advice and products that best suit your needs. They may not sell you a product that you don’t understand, and must explain all the terms and conditions clearly. So you have every right to ask your insurer to explain anything that is unclear or difficult to understand. If the person you are talking to can’t answer your questions, or makes you feel that you are being difficult by asking questions, you can ask to speak to another agent or their supervisor.

Your right to be fully informed doesn’t mean you can sit back and expect your insurer to do all the work for you! It is your responsibility to read your policy documents, check that the information you supplied is accurate and inform your insurer if any details need to be changed. If the language of your policy document is confusing or a particular clause is hard to understand, you can and should ask for an explanation; policies are supposed to be written in “plain language”, without any legal jargon.

You have a duty to pay your premiums

This is quite simple: Pay your premiums on time, and enjoy the peace of mind of knowing that you are fully covered. If you don’t pay your premium, your insurer has the right to refuse to pay your claims. But this could also affect your future premiums – as you are seen as a poor payer and thus a higher insurance risk. If something happens in your life that affects your ability to pay, talk to your insurer sooner rather than later.

You have a duty to be honest

Like your mother always said (we hope), honesty is the best policy. Don’t ever lie to your insurance company, or tell them less than the whole truth. If they ask you about previous claims or losses suffered, tell them the truth. If your teenage son is going to be driving your car regularly, let them know. If you’ll be using your bike for racing or your car for business, let them know.

If you accidentally drive into your own gate, don’t make up a story about someone bumping into you in a parking lot. Your insurance does cover you for embarrassing mistakes – but not for lying. If you are caught in a lie it will not only affect your current claim, but your future insurance cover and premiums as well. You could even face legal action for insurance fraud.

You have the right to complain and have your complaint taken seriously

If you are unhappy with the way your claim was handled, speak to your insurer first. Ask for the head of claims, and if that doesn’t solve the problem then go to the head of compliance. The insurer has a duty to deal with your problem in a way that serves both your best interests and theirs.

If you have no joy from your insurer, you can approach the Short-Term Insurance Ombudsman. This is an independent body set up to deal with problems that cannot be resolved directly with your insurer. The Ombudsman’s role is to act as a neutral mediator or facilitator. He or she will consider both sides of the case and make a ruling; if the insurer is found to have treated the customer unfairly , they can be forced to settle the claim.

You also have the right to take your problems to the public, using a forum like Hellopeter.com. Insurers that take their business and brand seriously will react quickly. These forums are also a great way to research prospective insurers and see how they handle their customers.

As a very last resort, you could seek legal advice and lay a civil claim against your insurer. This is a very expensive option, however, and you should only consider it if you have tried everything else without success and you are very confident of a ruling in your favour.

Remember: Knowing your rights and fulfilling your obligations will give you peace-of-mind cover and ensure far less painful claims experiences.

Tags: policyholder duties, policyholder rights
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Why does it matter who the regular driver of my car is?

Written on August 2nd, 2011 by MiWay
Categories: Library

If you’ve ever shopped around for insurance quotes for your car, you’ll know that one of the first questions you get asked is: “Who is the regular driver of this car?” Why should this matter? And how does your answer affect your car insurance cover?

What does “regular driver” mean?
Insurers view the regular driver of your car as the person who drives it most often. This can be tricky if your family has one car that is shared between spouses or between a parent and child, but it should almost always be clear who drives the car. If you’re in any doubt, mention this to the insurer all the drivers that might use your car on a regular basis.

How the regular driver affects premiums
Premiums are calculated according to the size of the risk you potentially pose – based on the underwriter’s experience of individuals with a similar profile. For example, people who have had their drivers licenses for less than a year are more likely to become involved in an accident than people who have been driving for 20 years; and some cars are more likely to be stolen than others. It makes sense that the bigger the chance is that your insurer will have to pay out, the bigger the premium should be.

Factors like age, gender, marital status and previous insurance history are some of the factors that are taken into account when the risk is assessed. So you can see that depending on who the regular driver of your car is, you may be quoted a different premium.

What happens if I name the wrong regular driver?
Because each premium is individually calculated – for example, younger drivers usually pay higher premiums than their parents (and consumers are aware of this) – people are sometimes tempted to be economical with the truth. For example a father might claim to be the regular driver of a car that he’s actually buying for his teenage son, to avoid paying a higher premium.

But this is what your granny might call “penny wise, pound foolish”: By saving a few rands a month on your premium, you face the risk of having your whole claim rejected if the car is involved in an accident. The insurer will always check the regular driver as part of the claims assessment process – if they discover that you’ve not been honest, they might refuse to pay out. You could also face higher premiums in future.

Does this mean I can’t ever let another person drive my car?
It’s perfectly normal that sometimes you might want to let your spouse, child or friend drive your car. If your car is involved in an accident while someone else is driving, your insurer most likely will still cover you – provided of course the correct regular driver is noted, the driver was driving legally and the policy conditions where adhered to! You may have to pay an additional excess, depending on the terms of your policy, but you will be covered. Check with your insurer or your policy document to be 100% sure!

Full disclosure is always the best strategy
The bottom line – Always be honest. If your student son or daughter is going to be the regular driver of the car, being honest about this has two benefits: One, your claims won’t be rejected. Two, your child will have an opportunity to build up an insurance history that will stand them in good stead when they want to take out insurance in their own right in future.

Remember to update your policy
Things change and you should make sure to update your cover to reflect changes in your lifestyle and assets.. If you’re going to be away for a couple of months and someone else will be using your car in that period, or you moved to a new address or changed jobs (so your day time parking changed), let your insurer know. And if you pass the car on to someone else in your household, don’t forget to change the details of the regular driver.

Visit http://www.miway.co.za/car-insurance for more information on car insurance cover from MiWay.

Tags: Car Insurance, regular driver
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How much is your car really worth? The top 5 things you need to know.

Written on July 29th, 2011 by MiWay
Categories: Library

Know the Facts: Easy insurance guides from MiWay, No. 1

Writing off a car, or having one stolen, is a stressful event. Things can get even more stressful, though, when it comes to claiming from insurance – many people get an unpleasant surprise when their payout is less than they expected. So how do you avoid this disappointment? Here are the top things you need to know:

1. The difference between retail value, trade value and market value

The retail value of your car is the average of what the same vehicle is currently selling for at car dealerships, and is the highest price you can insure it for. The trade value is what you would get if you traded it in. The market value or fair value is the average between retail and trade value. The value of your car further depends on the condition and mileage on the car.

2. How car values are determined

Car values in South Africa are determined (and benchmarked against) a system called the TransUnion Auto Dealers Guide. Every month, TransUnion collects data from motor manufacturers and dealers across South Africa on the sale prices of over 40,000 vehicles. With over four decades of experience, they are the experts at valuing vehicles and their guides are the standard reference when it comes to setting prices.

3. The danger of shortfall

If you are still paying for your car and it is stolen or written off, you may find yourself in the nasty position where what you owe the bank is more than what you are insured for. This is called a shortfall. To avoid this, it is usually a good idea to insure your car for its retail value, especially if it is financed with a residual or balloon payment. You might also want to consider taking additional credit shortfall insurance. Check with your insurance provider about this.

4. Lower premiums mean lower payouts

Insurance companies work out their premiums based on what they expect to pay out if they need to replace or fix your car. If your car is insured for its retail value, they will pay out more than if it is insured for trade or market value – so the premiums will be higher. In the same way, insuring for a lower value means you pay a lower premium.

5. Consider your lifestyle and needs when you choose insurance

Anytime you choose an insurance product, you have to make a decision about which is more important to you: Paying a lower premium now, or getting a larger payout if you need to claim. If you are a disciplined saver, you might choose a lower premium, but put aside some extra money every month to make up the difference if you ever need to claim. If you don’t have any savings and don’t trust yourself to put extra money away every month, it might make sense to pay a higher premium in return for the peace of mind of knowing you are insured for a higher amount.

For more on MiWay’s car insurance visit http://www.miway.co.za/car-insurance

Tags: Car Insurance, insurance guide, value of car
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Considering a motorbike? Know the hidden costs

Written on July 22nd, 2011 by MiWay
Categories: Library

Motorcycle Insurance
With fuel prices and toll fees on the rise, and traffic congestion eating hours out of every day, more and more people are considering motorcycles as a more convenient and cost-effective transport option. But, says direct insurer MiWay, consumers should consider all the costs before making their decision.

“There are a number of hidden costs you need to know about when you are choosing a bike,” says MiWay’s Terry Terblanche, who heads up the company’s specialist bike insurance division.

For starters, says Terblanche, bikes need to be serviced more often than cars – and most are not sold with a maintenance plan. “This means the cost of maintaining a bike is proportionately higher than that of maintaining a car,” he says. “You need to factor that into your budget.”

Bike tyres also don’t last as long as car tyres, says Terblanche. “On a superbike, for example, the rear tyre will typically last 3 000 – 6 000 km and the front tyre 6 000 – 10 000 km, depending on your drive style.”

Then there are costly non-standard accessories such as slip-on exhausts and steering dampers, which Terblanche says are very popular in the South African market. “These can be included in your finance plan, but be aware they will affect your repayments.”

What’s not included in most finance plans is riding gear such as helmets and leathers, which are essential for safe riding. “If you want good-quality riding gear – and it’s strongly recommended – you need to budget for that expense as well,” says Terblanche.

Then there is the cost of insuring all this. “Bike insurance premiums can be cheaper than car premiums, obviously depending on your insurance history and risk profile, but you will typically pay a higher excess if you claim,” says Terblanche. “When you are planning your purchase, make sure you will be able to afford your monthly insurance premiums as well as the repayments on your bike.”

Finally, you should consider the costs of enjoying your bike to the full, for example by participating in breakfast runs, rallies and track days.

“A bike can definitely be more affordable than a car, but you need to buy the right one for your budget and lifestyle,” says Terblanche. “If you make the right choice, you should be able to enjoy years of pleasure from your bike.”

For more info about MiWay’s bike insurance, call 0860 200 558 or visit our website http://www.miway.co.za/motorcycle-insurance

Tags: bike insurance, motorbike insurance, motorcycle insurance
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Money saving is possible for motorists

Written on July 15th, 2011 by MiWay
Categories: Library

Gautrain could save you money on your car insurance premiums The costs associated with motoring continue to rise at an alarming rate, leaving motorists cash-strapped and fearful of the next increase and the area it will emerge from. And it’s not just the volatility of the petrol price that is to blame; recent years have seen the introduction of a carbon emissions tax, escalating licensing fees and soon, the activation of a toll system on Gauteng’s heavily populated highway system. This strategy is expected to be rolled out across the country placing additional financial strain on motorists.

In addition to financing the improvement and maintenance of these highway systems, government hopes the costs associated with the tolling system will address congestion difficulties and environmental concerns by encouraging greater use of public transport and lift clubs or carpooling.

One of these alternate options is the Gautrain, which plans to put its Pretoria to Johannesburg leg into operation shortly. A high profile advertising campaign currently underway has littered the province with billboards promising an easy and efficient transport system that will significantly reduce the daily commuting time. The high profile train offering is supported by the recently upgraded and expanded public bus system, which makes getting to and from Gautrain stations simpler.

The question that remains for car owners of course is whether these alternatives can deliver real financial savings.

To answer this question as accurately as possible, be sure to include ALL the costs involved. These include your monthly repayments on your car, insurance premiums, service and maintenance costs, fuel, tyres and keeping your car on the road in terms of the day-to-day running costs. This calculation will enable you to make an accurate cost comparison of alternatives such as the Gautrain.

We also suggest you consider one, or a combination of, the following approaches:

Why not substitute travelling by car everyday with only using your car over weekends or when travelling long distance. This means you could immediately lower your monthly running costs and fuel bills.
Also consider if you need the riding comfort of a big or high performance car if you are only going to use the vehicle occasionally rather than on an everyday basis.
And if you and your family are changing your commuting habits, it is worth considering whether your family needs more than one car.

The key though is that regardless of which option you chose, this could mean immediate savings on your car insurance premiums.

To save on insurance, look out for solutions that base their premium on how much and how far you drive, rather than just pooling you with demographically similar consumers. This means that you will only pay more when you drive more! And while you are at it, look out for insurance options that also measure your driving style as this could mean even further monthly savings.

At the end of the day there is always a case to be made for public transport, even if you have only the environmental impact as your main consideration.

Tags: gautrain, public transport
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Always dreamed of riding a motorbike? Now is the time.

Written on June 22nd, 2011 by MiWay
Categories: Library

If you’ve always harboured a secret dream of roaring through life on two wheels rather than four, there’s never been a better time to make it come true.

“The daily commute by car is only going to get harder, especially for people living in Gauteng,” says Terry Terblanche of direct insurer MiWay. “Major roads are now so congested that it’s hurting everyone’s productivity and quality of life.”

A major part of the problem, says Terblanche, is the fact that most vehicles on the road are built for four people but are only carrying one. “We all need to switch to more efficient modes of transport, which is why it’s become increasingly costly to drive a car.

The Gautrain and rapid bus transit systems are one alternative, says Terblanche. The other is to buy a bike.

“Bikes are much cheaper and more efficient to run than cars,” he says. “They’re also hands-down more environmentally friendly. It takes about seven times more energy and natural resources to build a car than to build the average bike. So they’re cheaper to buy, and because you use so much less fuel a bike has less impact on the environment as well as on your pocket.”

There’s also the fact that motorcyclists will be paying lower fees on Gauteng’s new toll road network – so the more you use a bike instead of a car, the more you save.

Bikes are also cheaper to insure, adds Terblanche. “Our specialist bike insurance division offers significantly lower premiums to our bike-riding customers,” he says, “provided of course they have the correct licence and the right driving attitude.”

Then there’s the added convenience: “Bikers hardly ever struggle to find parking, and congestion isn’t an issue,” says Terblanche. “It can save hours of wasted time and help a lot to keep your blood pressure stable.”

Bikes aren’t for everyone, Terblanche acknowledges: “But if it suits your lifestyle, you choose the right bike and you are safety-conscious, it’s a very attractive option.”

For more information about how much it will cost to insure a motorbike, call MiWay today on 0860 200 55 8 or visit http://www.miway.co.za/motorcycle-insurance

Tags: bike insurance, motorbike insurance, motorcycle insurance
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Is your home winter ready? Ten top maintenance and safety tips.

Written on June 17th, 2011 by MiWay
Categories: Library

Winter can be hard on your home – and if the past week’s weather is any sign, this winter will be even harder than most. But a little maintenance effort now can reap big rewards, helping you keep up the value of your home and prevent disasters. Remember, as well, that most home insurance policies won’t cover claims for losses that are due to a lack of maintenance – so act now, and save yourself a bundle.

Here are the ten most important steps you need to take to maintain and safeguard your home this winter:

Check your geyser. Geyser problems are more likely in winter, so make sure your geyser is in tip-top condition. While you’re at it, take the chance to lower the temperature to 60°C or, even better, 55°C – and save a bundle on your electricity bill.
Fix leaking pipes. Exposed water + cold = ice. And ice will make leaks even worse and possibly even lead to burst pipes. Save yourself an expensive flood by repairing the leaks now.
Clean the gutters. Gutters fill up with leaves especially if you have big trees on your property or live in a particularly leafy suburb. Clear them now to avoid gutter damage and overflows.
Fix broken windows. This will not only keep your home in great condition, it will help keep the cold out.
Repair the roof. If you live in a summer rainfall area, take advantage of the dry winter months to check your roof. If necessary, now is the best time to repair, waterproof and repaint.
Trim garden growth. Most plants are dormant during the winter. Prune hedges, creepers and shrubs now to clear electric fences, gates, gutters, roofs and other areas where they might cause damage or interfere with your security systems. A good trim now will also prepare your plants for the next growing season.
Make sure all gas and electric heaters are in good order. Check the wiring or gas connections and give them a clean if necessary. Use heaters safely and responsibly: Don’t leave them switched on in an empty room for long periods, and never cover them or put them near beds, couches or curtains.
Install a smoke alarm. They’re cheap, widely available, easy to install and can save you and your family’s lives. It’s a no-brainer.
Consider installing insulation to keep your home warm and your electricity bills down, but make sure you choose fire-retardant product.
Switch appliances off at the wall during a power outage to protect them from surges – and remember NEVER to leave candles unattended, and to keep them away from furniture, beds and curtains.

The winter months are also the ideal time to take stock of your household contents – ask your insurer for an inventory list and update your cover to avoid being under-insured.

For more information on insurance cover for your home or household contents visit http://www.miway.co.za/home-insurance.

Tags: home insurance
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Home Insurance – Keeping those premiums down

Written on June 9th, 2011 by MiWay
Categories: Insurance Tips

Your home is a major part of your net worth, and insuring it is one of the first things you probably did after signing the title deeds. Now that you’re settled in and enjoying the quality of life that owning your own property brings, it may be time to consider your options where home insurance is concerned.

Home insurance is not only essential to your net worth and peace of mind, it forms part of your monthly expenses too. In order to benefit from insurance in the long-term there are several cost-saving hints that you should keep in mind.

Insure, and stay pro-active.
Having home insurance certainly makes owning a property less stressful, but in order to keep your premiums low and your home in top shape, being a pro-active homeowner is as important as your insurance cover. Some homeowners fall into the trap of neglecting their properties, assuming that if anything serious goes wrong, the insurance policy will pay out and everything will be just fine.

While your insurance policy may cover serious damage, several large claims will mean high premiums over the long term, sapping valuable funds that you could invest in your home loan, a second property or another investment. If you want your home insurance policy to really work for you, invest in the maintenance of your home every month, nipping those small maintenance issues in the bud before they lead to a major disaster.

A faulty geyser that could easily be fixed for a small fee could result in flooding if the problem persists, that would result in a massive insurance claim, while a small wiring issue could cause a fire with the potential to destroy your home! After a disaster like that your premiums are almost certain to rise, so staying pro-active will save you a fortune in the long term!

Tags: home insurance
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Home Insurance – Safeguarding your belongings

Written on June 8th, 2011 by MiWay
Categories: Insurance Tips

One of the great things about moving up in the world is the number of ways you can reward yourself. Most people set a lot of store by their home and its contents, be it a super-comfy lounge suite, a home theatre system, a garage full of tools and carpentry equipment, or a collection of rare antiques. Our possessions are expressions of our personalities and ambitions, and safeguarding them is essential to our quality of life.

With comprehensive home insurance covering household contents you’ll be covered for your furniture, appliances, electronic equipment and much more. The bad news? Insuring your items is often not all you need to do, especially if you are a collector!

Say the word “collector” and many people envisage a formal sort of gentleman, usually elderly, fussing over bone china teacups or carefully polishing a brass cup used by some member of European nobility far too long ago! Strange as it sounds, all of us have a collection of some kind and it needn’t be china or brass – the contents of your home are a collection of objects that mean a lot to you, and they need as much care as any antique.

An important fact to bear in mind is that not everything in your home loses value. Some household items like Persian carpets and old books may increase in value over the years, and insuring them to their full value means having them assessed every few years. If you do have a collection of antiques or silver, you’ll need to have them professionally appraised and adjust your home insurance accordingly. Items that do lose value like furniture will need to be replaced in the event of theft or fire, so these should be insured to their replacement value if your budget allows.

Know your value – and insure your lifestyle. Find out more about home insurance cover by clicking here.

Tags: home insurance
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MiWayMTB now also on Facebook

Written on June 3rd, 2011 by MiWay
Categories: MiWay In the News

The meeting place for mountain biking enthusiasts set up by innovative short-term insurer MiWay has entered the next stage with a showing on social media website, Facebook. The MiWayMTB fan page, which was initiated last month, has seen its fan base grow steadily, despite a relatively quiet launch.

MiWay’s head of marketing Carine Conradie-Haffejee attributes the daily growth in followers to word-of-mouth advertising and the growing popularity of the MiWayMTB TV show which airs on SuperSport every Monday at 20h30 with repeats throughout the week.

“Adding a Facebook page was the next logical step in our initiative to support and promote mountain biking in South Africa. From sponsoring a collection of races in 2008, we have built our involvement in the community to include television coverage; a blog featuring news, events and results; and now a platform where enthusiasts can engage with us and each other,” she explains.

The success of MiWay’s MTB television program is based on the partnership between the direct insurers’ marketing team and various industry contributors.

“Inside MiWay we have a strong base of cycling enthusiasts. This enthusiasm has given us a great advantage as they are part of the sport, participating in the events and involved in the community. Of course, it’s also a great advantage to our customers as they are dealing with people who are in-the-know and able to give them the best advice for their requirements.”

“Our role as the MTB sponsorship team is to listen to what is happening within the community, understand their desires and find the way to deliver on those as much as possible. Initially the need was for race sponsorship, as local corporate sponsorship tends to favour traditional sports like soccer, rugby and cricket. Later, we identified a need for information which resulted in mtb.miway.co.za. This information blog covers events, reviews, results and interviews as well as articles of interest to the community. As interest grew there was a demand for regular television coverage and here we were able to facilitate a segment dedicated to MTB on SuperSport,” comments Conradie-Haffejee.

Similarly, MiWayMTB’s extension onto Facebook came as a result of community demand. Conradie-Haffejee explains: “The number of comments and emails we were receiving on the site and after each episode of MiWayMTB made it clear that people wanted to discuss what was happening. The best solution was to create a meeting place where they could engage with other fans as well as us. The Facebook page enables the community to do exactly that.”

MiWay will use the Facebook page to deliver even more information for fans and enthusiasts and is in the process of developing an events calendar, product reviews, and previews on what to expect on the TV show. What’s more, the team is in negotiations with a leading MTBer to host community discussions on a regular basis, giving fans the opportunity to get advice from the best in the field.

The MTB community should also keep its eye out for a new challenge – Rave Rides. This programme will be exclusively available to the Facebook fan base.

To join the MiWayMTB page go to facebook.com/miwaymtb. Click here to find out more about MiWay’s mountain bike and bicycle insurance cover.

Tags: Bicycle Insurance, miwaymtb, mountainbike insurance
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