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MOTORISTS are in for another rude awakening and this time, it’s not at the pumps.
If you have tyre insurance you may not have it for much longer. One of the biggest underwriters in the insurance industry, Hollard, has cancelled some of its tyre insurance offers, saying they simply cannot keep up with the amount of claims and are losing money because of the poor state of the country’s roads.
But the company said its MotoVantage products are still on offer and more popular than ever. As every car owner knows, the cost of a new set of wheels can leave a painful dent in the bank balance.
Roads agencies said they were not aware of the move by some insurance providers. Many of the country’s roads have become a veritable obstacle course for motorists to navigate.
The South African National Roads Agency SOC Ltd (Sanral) expressed surprise at the news.
“If it doesn’t concern national roads, then I’m afraid Sanral would not be aware of this,” a statement read.
The Johannesburg Roads Agency’s (JRA) CEO, Dr Tshepo Mahanuke was as surprised.
“We are very aware of the condition of the City’s roads and our Visual Condition Assessments (VCA) of the City’s road network indicates that a structured approach to road management is required in not only maintaining but also in upgrading our 13,599km road network.
“Our response plan to the state of the roads prioritises the preservation of existing road infrastructure, keeping it in good condition and not allowing it to deteriorate to a poor condition.
“Over the past four months, not only have we had a concerted drive to implement proactive maintenance, including pothole repairs and crack sealing, but the JRA’s R100m road resurfacing programme for the 2022/23 financial year (which started in July) is currently under way,” he said.
Anneli Retief, head of Dialdirect, said they too noticed a spike in tyre and rim claims.
“Steep claim increases have been observed in Gauteng, KwaZulu-Natal and Mpumalanga. This is a significant increase and badly maintained roads are a serious concern,” she said. “One bad patch of road could lead to punctures, tyre bulges, bad wheel alignment and balancing, uneven tyre wear, cracked rims, damaged undercarriage, damaged tyre walls and blowouts, which could very well cost you your life.
Saied Solomons, president of the South African Road Federation (SARF), recently stated that roads that are not timeously and properly maintained are costing South Africa millions, with costs soaring even higher when a lack of maintenance sees a road rapidly deteriorating to the point of requiring total road rehabilitation.
“That said, this is exactly what insurance is for. We are trying to help, and are making a difference through our Pothole Patrol initiative which has fixed more than 130,000 potholes to date.”
TiAuto Retail channel executive, Chris Farrar said: “Sadly, it is true that Hollard has, per their policy T&C with TiAuto, has decided to terminate the much-loved Xsure™ Tyre Guarantee and MoreSure™ Tyre Guarantee products. It is especially sad for the Retail Brands of Tiger Wheel & Tyre® and Tyres & More® which have proudly been marketing these value offerings to retail clients for over 30 years alongside Hollard. The reason for Hollard’s decision is simple, the loss ratio has just become prohibitive.”
But Farrar said the good news is that they are currently working on a new product offering.
Meanwhile, Mahanuke said a number of major roads have been resurfaced including Columbine Avenue, in the South of Johannesburg as well as one of the major routes leading towards Soweto. Key arterial routes in the MIdrand area have also been resurfaced. Other roads upgraded include the M2 and M1, parts of Sandton Drive, Grayston Drive, Glenhove offramp and Far Eastbank Drive.
He stressed that pothole repairs are a short-term fix and that resurfacing and/or reconstruction of roads remain the long-term solutions to improving the condition of the road network.
“Roads resurfacing involves putting new asphalt or tar overlays on top of roads, to improve the riding surface and to prevent water from getting into the underlying structural layers, which causes potholes to form. As an interim solution, roads that have deteriorated but do not meet the criteria for prioritisation within the available funding will undergo routine maintenance.”
“Potholes are formed when the rock structural layers of the road (beneath the tar) fail. This is usually due to water getting into the structural layer and washing out particles of rock, which causes localised collapsing of the structural layer. This explains why there are always more potholes after heavy rains.
“In addition, structural layers of roads which are old and which have not been well-maintained, or which are subject to a large volume of heavy trucks, can become weak and start to break up, causing potholes to form.
“R116,155,662.80 was paid in respect of JRA public liability claims for the period 2021/2022 financial year.”
Mahanuke said the public may lodge claims with the JRA’s Legal Department but added that the claims process does take time. He said the agency is working tirelessly to ensure roads stay in good condition during the upcoming holiday season.
“The public can help us by ensuring they do not litter, stormwater drains and low lying bridges become blocked by debris and litter and the rainwater pools on the roads posing a danger for road users,” Mahanuke said.
Meanwhile, Tyremart director of strategic development and marketing David Harrington said while they have experienced an increase in claims over the past year, they ascribe the increase to a return to “normalisation” after the Covid lockdown and restrictions.
“We have certainly not seen a spike in claims. Our claims are at the same levels as they were prior to Covid. We have no intention to withdraw the insurance and/or the guarantee,” he said.
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