Tough economic conditions are forcing taxi operators to default on their vehicle and insurance installments. Louis Fivaz, Clarendon Transport Underwriters (CTU) says things are not looking good for the economy as many people are finding it difficult to keep up their monthly financial obligations.
“Things are not looking good for the economy at this point in time. The banks are battling to collect installments and we also see that our clients are battling to pay their insurance premiums,” said Fivaz. He advised that it is important that people should keep premiums up to date. “It is important that people should not default on their premiums or allow their policies to lapse. This is the time that operators should protect their valuable assets.”
Fivaz adds: “If operators don’t pay their premiums and something happens to their vehicles the insurance will not pay. In terms of the insurance contract before cover is granted or enforced the premium must be paid in advance.”
He says his company has taken steps to help operators not to cancel or default on their insurance policies. “We try to help operators to keep their premiums up to date by reminding them through brokers. We also send SMS messages as operators are always busy and it is easy to forget.”
He says his company has also introduces new insurance products to help operators stay covered.
“To help those who cannot afford their insurance premiums anymore we offer them an alternative cheaper insurance product which offers limited cover or higher excesses. We also offer and insurance product called 50:50.The insurer shares the cost of the claim with the insured on equal basis. Cash is paid directly to the claimant.” Fivaz says the 50:50 policy is best suited for people who have paid up their vehicles with the bank.