January 2014 Newsletter

Newsletter: Elna Rudman Brokers cc
January 2014

(Our apologies for this letter in English, there are some of our clients that really cannot  understand or speak Afrikaans and we are taking them into consideration)

Happy New Year – may 2014 select YOU as thé winner in all aspects of your life!

Thanking all our loyal clients for your continued support in 2013, years past and years to follow! We value our relationship with you more than words can express!
We would like to encourage you to always contact us if you are offered cheaper Insurance elsewhere. Remember that cheaper premiums may mean “cheaper” Cover & Service as well as Higher Excesses and Empty Box cover where more is Excluded than Included. With 28 years of Insurance Experience we can help you to find any pitfalls that may be to your detriment in the event of future claims.

2013 proved to be a “Stormy” and “Fiery” year that resulted in huge Insurance losses for Insurance Companies and Re-Insurers. We have already received warnings of premium increases for 2014 from most Insurers who are still suffering to repair vehicles after the hail storms last year, rebuilding houses that burned down in the Eastern Cape and repairing houses after the floods in the Eastern Cape and the more recent hail storms of 28 November 2013.

You may thus opt to move your Insurance to a cheaper option but may find that that cheaper option will have no choice but to increase your premium and then you may land up paying even more than at your previous Insurer. Upon wanting to return, you may find that the previous Insurer were forced to also employ rate increases and may be unable to accommodate you at the previous rates you enjoyed. We thus advise to rather follow the route of us negotiating on your behalf with your current Insurer who would always try to retain your business if the Claims ratio of claims paid out versus premiums paid in over the period of Insurance are in equilibrium.

Your first priority of choice when it comes to Insurance should always be the Service you deserve to get in every aspect from Underwriting to Claims handling.
New laws are implemented in South Africa at an unbelievable rate, to summarize some:

  1. P O P I – Protection of Private Information Act – you will find that you will have to sign more and more mandates to give your written permission for your Broker or other Service Providers to act on your behalf or to obtain information on your behalf – Discovery recently refused to give important Medical Aid information to us pertaining to our brain injured son who cannot speak, read, write, walk or talk. They insisted that he sign a mandate for us to obtain his information! So sharpen those pencils……
  2. TCF – Treat Customers Fairly – this will be in your favour as Service Providers may not treat you according to their internal rules anymore, they will have to adhere to the law that prescribes how a client should and must be treated!
  3. CPA – Consumer Protection Act – yet again if it reaches the full potential of protecting us as Consumers, it will be to our advantage to complain if we were ripped off by Service Providers and if found guilty by the Board, they will have to cough up a % of their turnover with a minimum penalty as high as R1,000,000.
  4. The corner stone and leader of the above, the FAIS law, instituted in September 2004, with the help of the office of the Ombud should still be considered your valid option if you have an Insurance related complaint when you suffered a financial loss due to their negligence or poor record keeping. Contact us if we can help, we have won several battles assisting our clients taking their complaints to the applicable Ombudsman when their claims were repudiated.

This past year Intermediaries and all others who give advice or who does Intermediary Services were forced to write the well bespoken RE exams pertaining to the knowledge of the FAIS law and how to implement it in our day to day client service levels. I am proud to announce that all at this Office were fortunate to pass the exams on first attempt. There are poor souls out there that have multiplied the R900 cost per exam by 5-10 times and still have not passed it, we are thus thankful that it is over for now for Elna & Pieter.

As many of you are aware of: Tokkie Strydom retired in May of last year and although she helps out from time to time if needed, she was replaced by my daughter, Chantal du Plessis, who worked here before, now however she was appointed on a permanent basis. Chantal will write the necessary exams this year to enable us to employ her not only in the current Administrative position but as a full Representative of Elna Rudman Brokers. We are also considering a 4th person to help with our Administration load that increases on a daily basis and to serve you, our valued client, in excellence.

Be aware of:

  1. Toyota Fortuners are currently the flavour of the day for thieves and recently five of them were stolen in an hour in the Pretoria area as was reported over the News. If you own one, make sure that you install a Tracking device.
  2. Evaluate your belongings at least annually to ensure that you are not under or over insured, Insurers only have an obligation to put you in the same position that you were before the event of a claim and will not pay out the Insured amount of a vehicle if over insured, they pay out the current Retail or Market value depending on the choice you made at the inception of the policy.
  3. Advise us within 48 hours if you move to a new address to enable us to inform the Insurer and to ensure uninterrupted cover for your belongings and cover whilst you move.
  4. Advise us as soon as possible but not longer than a month following the event of a claim to report your claim to the Insurer as they may refuse claims handed in more than a month post incident.
  5. 5. Ensure that you save your policy number and the 24h Emergency number of your Insurance Company on your cellular phone, we have sent this via sms’s to all of you, if not received contact us to resend to you. This will enable you to have 24h/7 access to your Insurer and especially in the case of emergencies and after office hours.
  6. Remember to contact us also for your Life and Related needs. Pieter Rudman will gladly assist you with any Life matters, Saving for retirement, Investments and/or Medical Aid needs that you may have. We are contracted to several Life Insurers, giving you the more than one option that is so important, be careful of the one and only option  Providers, you deserve a choice of Providers to find the option suitable for your needs!
  7. We are asked often why car values decrease but the premiums increase or remain the same, herewith an explanation:

The price of repairing cars both in cost of parts and labour are getting more expensive each year, so much so now in SA that it is unbelievable how many cars are just simply written off because of the cost of repairs, this include storing fees charged by panel beaters, car hire costs involved for those who have it on their polices as well as tow in costs and Assessor fees. Thus the company do increase NCB’s (no claim bonuses) every year up to a maximum and the NCB discount thus creates a premium discount as does the lower retail value of the car but on the other side the rate increase to combat the above costs again creates a premium increase, we are now at a time where the latter overtook the discount for a NCB or value amendments. I find it with all the companies we work with. It is unbelievable how expensive vehicle repairs have become in SA and I think the future stance of companies will be moving towards owning their own Panelbeater shops and storage facilities to try to combat these costs to themselves and to clients indirectly.

To conclude – why not refer your friends and family to us if we satisfy you with our Service! Elna will gladly lead them to the right option for Short-Term Insurance and Pieter Rudman can assist in finding the right Life & Related or Medical Aid option.

May 2014 smile on You and Yours!

Always at Your Service…….
Elna Rudman

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