Are you sure your car is fully insured? According to Sean Pheiffer, Head of Motor Claims at Old Mutual Insure, it is crucially important to take the extras and accessories into consideration when declaring the value of your vehicle to your insurer.
What is considered as ‘extras and accessories’?
Anything that is fitted to a “standard” vehicle model listed on the insurance schedule, whether permanent or removable, is referred to as extras or accessories.
Some of these extras are fitted at the manufacturer’s factories; many are fitted by approved installers after the vehicle leaves the factory.
Examples of these extras include tow-bars, bull-bars, sunroofs, navigation systems, tracking devices, wheels, music systems, leather seats, winches, off-road features, anti-theft devices, window treatments, canopies and an almost endless list of added features that enhance the vehicle’s functional ability or aesthetic appeal.
These extras can easily add 50% to the value of your vehicle.
Why you should include extras and accessories in your insurance policy
“The danger of not insuring your vehicle for the correct amount is that you only realise that you are inadequately insured when you put in a claim and are paid out less than you were expecting to receive,” says Pheiffer.
In addition, most consumers are not aware that in the event of the sum insured not including the value of the extras and accessories, you will be liable to pay the settlement difference.
However, determining exactly what your short-term insurer will pay out can be a minefield.
How to ensure you are not under-insured
The best way to avoid under-valuing your vehicle is to provide your broker will all the necessary information about your vehicle. Advise your broker of all features, extras and accessories that are not part of the base model.
And remember this is whether or not you asked for these extras to be added or they were added by the previous owner or the dealership prior to your purchase.
Also remember to communicate any additional investments in enhancements to the vehicle after you have purchased your policy.
If your vehicle has extras, go to a reputable dealer in your area for a valuation. Lastly, review the value of your vehicle, including all its extras on a regular basis.
Vehicles depreciate in value every year and so do the value of any extras - by an average of 15% a year.
Prepared by CORE Short-Term
For more information, contact 051-448 8188
The Boston Consulting Group’s (BCG) April 2018 report provides evidence of how businesses in Africa are starting to integrate the African market. The report shows how entrepreneurs on the continent are overcoming the variety of stumbling blocks that previously stood in the way of economic integration. Despite challenges, economic integration is not only a reality but is gaining momentum through African businesses investing in Africa, African countries trading within Africa and Africans travelling more in Africa. A new generation of African entrepreneurs is driving this initiative.
Geographic fragmentation remains a challenge, as Africa is large with only a couple of cities with more than four million people. These cities are spread out over the continent with direct flights between them taking on average 12 hours. In Europe cities with a combined contribution of up to 70% of the GDP of the countries involved are less than three hours apart. In South-East Asia and Latin America the average travelling time is eight hours.
Africa consists of 54 sovereign countries – four times more than South America and three times more than East-Asia. This impacts negatively on the various economies, resulting in the fact that it takes the economies of up to 24 African countries to generation 1 trillion American dollars in the GDP – more than any other continent. Europe has only one trading zone – Africa has 16. Eighty percent of African countries require visas from visitors.
Infrastructure is equally fragmented. Despite a large number of infrastructure initiatives like rail and road links many of these are in poor condition. This has a direct and negative impact on the cost to conduct business in these countries. According to the BCG the cost of transporting goods in Africa averages 320% of the value of the goods, compared to 200% in South America and 140% in South-East Asia and North America. As a demonstration of this a fertiliser producer worked out the “other” costs of transporting fertiliser from South Africa to the DRC in terms of actual fertiliser. For each permit, bribe, etc. the equivalent weight in fertiliser was “removed” from the truck. The end result was that the hypothetical truck arrived in the DRC completely empty. Corruption, bribery and the lack of standardised requirements pertaining to freight are hampering the free flow of goods across borders.
Despite these challenges, economic integration in Africa is gaining traction, with African businesses setting the pace. Between 2006/7 and 2015/16 the amount of direct foreign investment by Africans in Africa tripled from 3.7 billion American dollars to 10 billion. Mergers and acquisitions increased from 238 to 418 per year. Annual intra-Africa exports increased from 41 billion American dollars to 65 billion and the number of tourists from Africa travelling in Africa increased from 19 million to 30 million, according to the BCG.
The rapid progress of economic integration on the way to the One Africa dream is ascribed to four competitive advantages, including a renewed focus on and commitment to Africa, utilising local expertise and the presence of decision-makers and a facts basis, flexibility in making decisions quickly and the improved ability to navigate strategically the informal nature of business. Not only is there a bigger African footprint by Africans in Africa, but the consolidation of businesses has made economy of scale possible. Three types of businesses that complement this pioneering effort include the rapid development of African airlines, financial institutions that enable better transactions and telecommunication that moves the borders of markets. Africa therefore has the ability to lead the next industrial revolution.
Prepared by CORE Business Development
For more information, contact 051-448 8188
The Youth Employment Service (YES) initiative was recently gazetted with immediate effect. This is a significant piece of B-BBEE legislation that might change the B-BBEE landscape. YES is a business-driven initiative but also a partnership with government and labour in collectively finding workable solutions to South Africa’s youth unemployment dilemma. The YES initiative aims to create one million jobs for youth.
In simple terms, the YES initiative enables business enterprises to enhance their B-BBEE levels with one to two levels if certain youth job creation targets are met. The YES initiative is applicable to both the Dti Codes of Good Practice and all promulgated Sector Codes.
Business enterprises can enhance their B-BBEE recognition level by:
Calculation of YES target
The YES target is based on the HIGHER of the results of the following 3 formulae:
Who will qualify as YES participants?
Eligible participants under the YES initiative are people that meet the definition of black people (South African Coloured, Indian and African persons) between the ages of 18 and 35. Only black youth who are unemployed at the time of registering with the programme will be acknowledged as eligible employees. They must benefit from 12 months’ full-time, quality work experience, which will be monitored by Yes4Youth to ensure a consistent national standard. These jobs must be created in addition to the existing staff compliment of the business. Where the measured entity is unable to create sufficient new jobs, they may sponsor qualifying new jobs in other EMEs or QSEs.
To qualify for registration under the YES initiative:
It should be noted that this Gazette does not change Priority Element compliance requirements whereby missing a 40% sub-minimum requirement results in the loss of a B-BBEE Level. However, an entity can now regain that level under the YES initiative and indeed achieve a further level through greater YES performance. Therefore, the loss of a B-BBEE level through not meeting black ownership requirements can be overcome through the use of the YES initiative.
Six steps to YES benefit
While there are a lot of positives to the YES initiative, it could be a very expensive and onerous initiative with some unintended consequences. It is critical that companies have the technical expertise and knowledge they need to implement YES successfully. They will need to establish how to manage YES from an industrial relations perspective. It is necessary to consider both employer and employee expectations. Businesses that implement YES initiatives every 12 months will need to increase their budgets in line with their increased payroll to achieve their skills development targets.
For any B-BBEE-related assistance, please contact the CORE BEE team.
Prepared by CORE BEE
For more information, contact 051-448 8188