Car Theft Levels in SA Taking a Toll on Insurers

March 27 - As crime continues to plague South Africa, insurance companies are feeling the bite as an increasing number of all motor claims are related to vehicle theft and crime.

The South African Police Service reporting a surge in car theft to just under 86 000 vehicles during 2005 and 2006.

In fact, crime in South Africa has become such a large and widespread problem that local organisation Business Against Crime (BAS) has confirmed that the high levels of crime in South Africa are actively scaring away domestic and international investors.

In light of this, the South African Insurance Association (SAIA) recently donated R1.3 million to BAS in its fight against crime.

Said SAIA CE, Barry Scott, 'It is very much in the interest of the short term insurance industry that we remain actively involved in the fight against vehicle crime as over 43 per cent of the South African insurance industry's gross premiums are vehicle related.'

Scott went on to say that half the net cost of all claims paid go towards motor claims. Statistics such as this raise the question again and again of what the South African government is doing to combat the growing crime rate that is affecting all manner of South African business, not just insurance.