Business#OFMBusinessHour - Improved road safety translates to lower insurance premiums
─── 19:29 Wed, 19 Jan 2022
The insurance industry benefits from the introduction of a system by government that aims to improve road safety in the country, but maintains that the system needs to be administered properly.
This is according to the spokesperson for Old Mutual Insure, Lizo Mnguni, who was reacting to the North Gauteng High Court in Pretoria last week setting aside the Administrative Adjudication of Road Traffic Offences Act (Aarto), declaring it invalid and unconstitutional.
The applicants in the case – the Organisation Undoing Tax Abuse (Outa) – as well as other parties like the Automobile Association of South Africa - have said they are of the view the system is more of a system aimed at financial gains than the lowering of road carnages in the country.
Mnguni, however, tells the OFM Business Hour that improved road safety in South Africa translates to lower insurance premiums for vehicle owners.
Listen to Olebogeng Motse’s conversation below to find out more.
#OFMBusinessHour - Improved road safety translates to lower insurance premiums: