Insurance claims show road crashes almost back to pre-Covid-19 levels

The number of road accidents in SA is almost back to what it was before Covid-19.

This is according to Old Mutual Insure, which made the deduction from trends it is seeing from claims made by clients.

“One of the trends we are seeing in terms of claims is that the number of road incidents such as accidents, including fender benders and more serious events, is almost back to what it was before Covid-19, which is very worrying,” said Lizo Mnguni, spokesperson for Old Mutual Insure. 

He said before the pandemic there was a higher frequency of vehicles on the road. During the Covid-19 lockdown, when motorists weren’t using their vehicles as much, the number of claims for road-related incidents dropped.

“Since many organisations have adopted hybrid working models and curfews have been suspended, drivers are back on the roads and more serious accidents, many of which involve fatalities, are being reported.”

Another factor Mnguni cited was that road infrastructure has not kept up with the number of drivers on the roads.

Mnguni said when there are more road incidents, this translates into higher premiums.

“The biggest cost driver of insurance in SA is a high number of accidents and vehicle theft rates. These are largely driven by poor enforcement as well as the large number of unlicensed vehicles and drivers on the roads.

“If road safety improves, drivers can look forward to lower premiums.”

He said a huge obstacle to improved road safety is that there are so many uninsured, underinsured and unroadworthy vehicles on the road.

“Of the estimated 11-million cars and drivers on the roads, it is believed only about one third, or about 3.5-million, are insured. This means if a driver is in an accident, the chances are high it involves an uninsured driver.”

Mguni said over the long-term, the Administrative Adjudication of Road Traffic Offences (Aarto) Act, which is a pending regulation, should improve road safety by reducing the number of unlicensed drivers and vehicles.

“Ultimately, the intention of the regulations was meant to improve driving outcomes in general, which is desperately needed.

“Road safety doesn’t only impact people’s lives. It directly impacts your back pocket when it comes to your insurance premiums.”

TimesLIVE