“Receiving this letter, I emailed it to my social media manager who suggested I share it with you all.” – Jerome Schofield, CEO

The letter reads:

“Dear Jerome

How social media can get you into trouble with your insurer 

This article (click link below) reported in Fin24 was brought to my attention.

http://www.fin24.com/Money/Insurance/how-social-media-can-get-you-into-trouble-with-your-insurer-20170512-2

I estimate that 80% of accidents are caused by distractions including the use of mobile devices. One such incident occurred near my home this week (in May 2017). The driver who caused the accident was checking directions on Google Maps on her mobile phone in the dark of night. As she looked up she hit a Third Party entering the traffic circle from her right.

One large international oil company’s employment policy is that mobile phones are to be locked in your boot whilst driving. It is a dismissible offence to use the device whilst driving.

In South Africa, the use of a cell-phone while driving is prohibited by Road Traffic Regulation. This is not just limited to talking on one’s phone, but also holding a phone or other communicating devices when driving.

Policy conditions provide for the rejection of claims:

1. If you are committing a criminal offence, which using your mobile whilst driving is, and
2. If the policyholder does not act with “due care” to avoid an accident or loss or damage.

Insurers are able to identify your actions and what programs you were using at the time of impact due to sophisticated technology on smart phones.

Client Beware!

Yours truly from the Tradesure Team”

I’d like to emphasis one of the major conditions for the rejection of claims by insurance companies.

Some say, that you cannot expect a payout from your insurance company if  your accident is a result of a committed criminal offence, like using a cellphone whilst driving. Some also say that reckless driving is a criminal offence, yet insurance companies payout. So where do we draw the line?

As brokers, we draw the line at the policy and it’s wording. If one has a broker to go through the policy and check the wording, the fine print, and make clear all that could be used to reject a claim, he/she will highlight these issues when it comes to claim time and it’s likely a payout will be made even if the accident is caused from an answered phone or checking Google Maps.

While insurance brokers in Durban are knowledgable when it comes to understanding the policy, they also know the best insurance companies to insure through for your specific need.

Brokers (and insurers) know that the act of a fair, impartial payout is, in fact, lawful and clearly stated in the FAIS act. There are plenty of Brokers in Durban who have undergone the necessary training and are professionals when it comes to clearly reading and understanding policies in order to get you what you’re paying for–a payout. So, should insurance companies payout when the accident is a result of a committed crime? I don’t believe this is the right question. I think the question we should ask is: Should insurance companies payout when you’ve being paying a premium? Our answer is a big, fat YES!

With all this being said, be careful when driving, especially during these rainy Durban days. Although the sun’s out (guns out), this weather calls for all phones to be locked away whilst driving, as roads are still slippery and road flooding has occurred throughout Ethekwini, and major flooding in the Richard’s Bay area. Those who are planning to drive up to the Berg, Nottingham, Sani Pass or wherever in South Africa, keep your eyes on the road, and enjoy the snow (if there is still any). Probably just slush now.