CIB to apply 15% off motor premium for May – among other Covid-19 concessions
The management team at CIB has taken a number of client-focused decisions regarding motor premium, renewals, underwriting engagement and risk management to compensate for the extraordinary circumstances in which we find ourselves due to the global corona virus outbreak.
“We are living in a time of extreme uncertainty, which is generally a risk manager’s nightmare,” says Jon-Jon Smit, head of sales and marketing at CIB. “The uncertainty of eventual developments may seem overwhelming at times and we encourage the industry – and South Africans in general – to keep focused on what we can do without getting lost in countless predictions and hypotheses.”
From an underwriting and customer service point of view there are a few factors – particularly during this time of lockdown – that Smit believes can be seen as certain. CIB, he says, has taken the unusual way we live during Covid-19 into consideration in its short-term planning.
“CIB recognises the because of the lockdown, many vehicles are not being used or are being used significantly less than normal,” says Smit. “The resulting traffic volume has also been much lower, all of which reduces the motor risk.
“We will assist our clients by applying a 15% premium reduction across all motor premiums for the month of May.”
This only applies to clients who have not had any individual underwriting interventions during the past year.
“These clients will be dealt with on a case by case basis.”
Smit says the possibility of a premium increase at this time is a huge concern to many clients.
“During these challenging times we do not want to create the impression that clients who are already under pressure need to face premium increases – even at policy renewal. CIB will therefore renew policies with renewal dates between 1 May 2020 and 30 June 2020 by applying the inflationary escalations to the sections as per normal, while keeping the premiums constant for the months of May and June.
“This will yield the protection against inflationary pressures on sums insured, while providing policyholders with protection against rising premiums.”
Clients and brokers have the opportunity to discuss their particular premium concerns on a case by case basis.
“We are open to discussion around specific adjustments on individual policies where the aforementioned might not be appropriate.”
Smit says renewal and motor premium relief actions can be applied to all policies.
“We encourage brokers to contact our underwriting department to make more specific adjustments to specific policies during this time. We recognise that there are many instances where covers may not be required, or the exposure and related risk can be reduced.
“Our underwriting team will assess each request and endeavour to find a suitable solution in each case.”
“We also want to encourage brokers and clients to review any sum insured that may be exposed to the material changes in exchange rates,” says Smit. “It is vital that policyholders remain adequately covered and we advocate a review of the sums insured where appropriate.”
The lockdown period prevents many South Africans from travelling to work. And while this presents lower risks on the roads, there are increased risks elsewhere.
“We have already witnessed an increase in theft and burglary cases in unoccupied premises,” says Smit. “We do not want anyone to disregard the lockdown restrictions. However if security firms can confirm that all is in order at a client’s premises, we will together discourage criminals.”
This may also apply to holiday homes or second residences.
Brokers and clients are advised to visit the CIB website for information relating to the claims handling during this period.
“For example, we urge you to contact us on any car-hire related claims,” says Smit.
Keep in touch
“Remember to keep in contact with your staff, friends and family alike. We find ourselves in unfamiliar territories, but through cooperation and constructive engagement we believe that we can make a positive contribution in these trying times.”