Covid-19: Santam to cut vehicle premiums by 20%, with further MiWay relief offered
JOHANNESBURG - Insurer Santam is to provide further financial relief for its customers following the extension of the national lockdown and will refund 20 percent of vehicle premiums paid this month for its clients.
It also announced futher relief for customers of MiWay, a Santam subsidiary.
Santam said yesterday in a statement that the new premium refund would be based on 20 percent of motor premiums paid this month and paid to all clients with active policies during the course of May.
This equated to R155 million and would bring the group’s collective Covid-19 relief efforts to R400m, it said.
Lizé Lambrechts, the chief executive of Santam, said: “We are absolutely committed to playing our part to help alleviate some of the devastating impacts of this virus. We are listening to our clients, monitoring the impact of this pandemic, and where we are able to provide additional assistance, we will do so in a fair and responsible manner. As a proudly South African business, we are dedicated to helping our fellow compatriots by implementing real solutions that make a tangible impact on peoples’ lives.”
Santam had provided an initial relief package of R200m, which was aimed at helping clients, intermediaries and suppliers, including a contribution to the Solidarity Fund.
MiWay was also offering Covid-19 relief, which would put R30m back in the hands of clients and suppliers. MiWay clients would see an additional 7 percent discount to the value of R18m, on top of the 10 percent discount provided earlier. Furthermore, MiWay will be providing relief of R10 million to Motor Body Repairers and towing operators, taking their total Covid-19 relief package since lockdown to R55m.
Lambrechts said this latest premium relief initiative recognises the reduction in motor insurance risk exposure during the lockdown.
"The relief will also support Santam intermediary partners in keeping clients covered during this financially stressful period."
Other vehicle insurance companies are making plans to help their clients during this trying period.
Discovery Insure said last week that it was offering a motor-premium relief benefit to clients for May, based on how far clients drove during this month.
Most motorists would drive very little during the lockdown it said. Small and medium-business clients of Discovery Insure, who were severely impacted by the national lockdown due to being not able to generate income, could apply to defer their next two months’ premiums and repay them over a period.
Standard Bank Insurance was implementing a 25 percent cash-back relief on its car insurance premiums.The cashback was part of the range of insurance relief initiatives.The cashback would be paid back 14 days after the lockdown ends to clients who were up to date and continued to pay their car insurance premiums over this period.
Old Mutual has made several options available to its insurance clients over the short term or one to three months, including a premium deferment option with a delayed payback over a set period; leniency on missed debit orders where customers have lost or experienced reduced income because of Covid-19; reducing premiums by allowing customers to amend cover temporarily; and an immediate relief programme for the group’s iWYZE motor insurance customers in the form of a three-month 7.5 percent discount on motor premiums.