Leading short-term insurer and financial services provider, Miway, today announced that it will make a further R30 million available to help reduce the financial impact of COVID-19 on its clients, suppliers and the broader South African community.
According to Miway, although the lockdown has brought about increased costs with regards to staff and service providers, their projections show that the company will be in a net positive position.
Miway CEO René Otto says, “The implication of the extension of the lockdown by a further two weeks is that Miway is in a position to give an additional 7% premium discount on all motor premiums. This is consistent with the 10% discount we gave for the initial 3-week lockdown. We believe the right thing to do is to pass this saving of R18 million on to our clients. This brings our total premium reduction to 17% or over R40 million during the 5-week lockdown period.”
To help mitigate the financial impact of the extended lockdown and to help maintain a sustainable supply chain, Miway has set aside over R10 million to assist its service providers.
“We are also extending our relief initiative to our service providers – mainly motor body repairers and towing operators – to protect the insurance value chain. Without a strong service provider network, we will not be able to provide world class service to our clients. The support given to our service providers is in the best interest of our loyal client base,” added Otto.
Through staff contributions, matched by the company, Miway will be contributing R1.4 million towards helping families of Miway staff affected by the COVID-19 pandemic, as well as a donation to the Solidarity Fund. René Otto also followed the example set by President Cyril Ramaphosa and will donate a third of his salary for the next three months to the Solidarity Fund.
Additionally, the company donated R100 thousand to PinkDrive NPC to assist in bringing COVID-19 testing and screening to targeted hot spots in Gauteng, Western Cape and KwaZulu-Natal.
“As Miway, we remain hopeful and committed to rebuilding a South Africa for the future. We are exceptionally well equipped to not only have hope, but to also spread hope to our clients, staff, suppliers and our broader communities,” concludes Otto.
