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Proposed Zero alcohol limit for drivers – How will it influence the insurance industry?

Fikile Mbalula, Minister of Transport, plans to implement the 0% legal blood-alcohol limit on South African roads by June 2020 as part of the new AARTO Act. How will this impact on your clients’ insurance premiums and claims?

A recent Germiston City News article investigates the questions and shares that it is well documented that in the past some insurers have refused claims if the driver was proven to be under the influence during an incident. The new act could make this a more common trend across the board. It further points put that drivers with drink-driving convictions on their records can expect insurance premiums to go up while in some instances it could result in the refusal of cover altogether.

The article also highlights that another role insurers should play is increasing information campaigns that could help your clients to comply with the new act. It points out that companies should use their existing channels to communicate the implementation and the implications of the new act:

Spell it out in plain language without resorting to the kind of insurance legalese that bewilders and intimidates consumers.
Give drivers a clear guide as to how long it takes for all alcohol to get out of the system.
And issue plenty of reminders.

Click here to read the article.

In a contradictory OSTI case earlier this year, an insurer had to settle a claim as they did not demonstrate sufficient evidence to prove that an individual was influenced by the consumption of alcohol or that it had contributed to the accident.

As we have come to know, Minister Fear-F..ol is at times more adept at shooting from the hip than the late great John Wayne. While we await the latest outcome of the scrap at the O.K. Corral, it may be advisable to consider imposing the same limitation on pedestrians, as most of their fatalities also stem from walking under the affluence of incohol, as Andy Capp so succinctly put it.

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