Drivers of high-risk cars in Gauteng, KwaZulu-Natal, and smaller interior provinces, according to Old Mutual Insure, must install vehicle monitoring devices or risk losing insurance coverage.
This is a response to an increase in the number of insurance claims for specific vehicle models as a result of theft and hijacking.
The business and its subsidiaries issued a specific warning to owners of newer and late-model high-end cars, particularly bakkies and luxury vehicles, stating that these vehicles are increasingly being targeted in South Africa.
The insurance noticed an upsurge in claims for these vehicles, with crooks apparently able to circumvent keyless entry devices.
“From our investigations, it appears that syndicates have found ways to seamlessly access vehicles with keyless entry systems. The theft rate is particularly high in Gauteng, KwaZulu-Natal, and some of our smaller inland provinces,” the group said.
To mitigate the heightened risk, Old Mutual Insure and Elite Risk Acceptances now demand the installation of authorised early warning/active tracking devices on higher-risk cars covered by Commercial Lines, Agri, and Personal Insurance policies.
Car owners are asked to install high-quality monitoring systems by April 15, 2023.
The provinces concerned are:
- Gauteng
- KwaZulu Natal
- Limpopo
- Free State
- Mpumalanga
- North-West
This does not apply to cars in the following categories:
- Western Cape
- Eastern Cape
- Northern Cape
- Botswana
- Namibia
“Although it seems like traditional tracking devices are becoming less effective, they still assist in mitigating the risk as they do provide an advantage in the early stages of theft and hijacking,” the group said.
The companies warned that if policyholders do not comply, they will no longer be insured against theft and hijacking.
“We are living in unprecedented times where vehicle syndicates have learnt how to use sophisticated means of technology to access a vehicle. We remain committed to the safety and security of our customers. It would be amiss of us not to take drastic action in this climate,” it said.
Due to the lowered risk, Old Mutual Insure and Elite Risk will cut car premiums, if they have not already been reduced.
Tarina Vlok, MD of Elite Risk, a high-net-worth insurer and part of Old Mutual Insure, stated that the firm is attempting to make the process as simple and frictionless for policyholders as possible.
“We have partnered with several tracking companies to help clients with high-risk vehicles access tracking and stolen vehicle recovery service,” she said.
She did, however, point out that it is up to the consumer to select a tracking device from an insurer-approved list.
“We further encourage all policyholders to have a tracking device fitted, regardless of the type of vehicle. It is also imperative that customers regularly check and ensure that their tracking devices are in working order.”
In this context, it is also the car owner’s obligation, according to Vlok, to be proactive in limiting the heightened danger of theft and hijacking.
According to the organisation, car owners may take the following steps to protect their vehicles against theft:
- Park your vehicle in well-lit, busy areas. Avoid leaving your car in isolated areas or places with poor visibility.
- Install an alarm system or immobilizer, which can deter thieves and prevent them from starting the engine.
- Use a steering wheel lock, which can make it more difficult for thieves to drive away with your vehicle.
- Consider using a faraday bag for relay/hacking attacks as this blocks the key signal that certain syndicates use to jam vehicle remotes.
- Fit more than one tracking device into the vehicle to make it more difficult to steal and easier to recover.
