The government has recently eased restrictions and moved the country to level 1. This means that more businesses have re-opened and have started operating. There are still some businesses that cannot operate fully and still have to operate within certain restrictions.
Even though the country has moved to level 1, many consumers are still facing the financial challenges and impact brought about by the lockdown, which is still causing many South Africans to go without salaries or earn a reduced income.
Many consumers are continuously looking at ways to cut expenses and are restructuring their spending patterns, which includes looking at ways to reduce the spending on their insurance premiums.
Insurance companies are very aware of the challenges that these policyholders face and have put measurers in place to try and assist where possible.
The South African Insurance Association (SAIA) is here to help you!
SAIA is the representative body of the non-life insurance industry and is encouraging policyholders to consider the following when making decisions regarding their insurance policies:
- Read your policy contracts, particularly when it comes to Credit Protection insurance.
This will assist you to know what you are covered for and what the conditions of cover are. Some credit protection policies do offer cover in the event that you do not earn an income. If you have a credit protection policy, you need to check the terms and if it is possible to claim against it.
- Consult with your insurance company.
Most insurance companies have put measures in place to assist policyholders to address the financial impact brought about by the lockdown and pandemic. Find out more directly from your insurance company.
- Contact authorised advisors representatives, or brokers before making any changes to your policies.
Representatives or brokers who are authorised to give advice will be able to assist you to structure your policies to suit your needs. This will ensure that as the policyholder, you can make an informed decision and do not decide to cancel or reduce cover without assessing the impact that this action can have.
- During the lockdown period, your circumstances may have changed, resulting in a change to your risk exposure.
For example, you may be continuing to work from home which results in less travel which in turn reduces your exposure to road accidents. Such a change could translate into better insurance rates. By discussing this with an advisor or representative, you may be able to restructure your policies and may possibly benefit from this reduced risk.