In a developing country like South Africa where the levels of crime have leapt to all-new heights, rivalling virtually every other nation on the planet, theft insurance is not an option but an imperative.
A quick glance at the local broadsheets every day reveals ever-increasing incidents of theft in both the personal and commercial realm.
The nation has the second highest rate of robbery and theft in the world after the Bahamas, and a dedicated unit has been set up to combat money-in-transit cash heists, many of which appear to be conducted on a paramilitary basis.
Electrified fencing, high walls, burglar bars and armed response companies are the order of the day in both upmarket and middle income areas. Many insurance brokers will not even consider covering your household contents without the installation of a house alarm. Businesses are under even more pressure to protect their assets and will only be afforded adequate insurance cover if they follow stringent security measures.
In 2008, over 1 million vehicles were reported stolen from outside homes and businesses, with a recovery rate of only 40%. More than half of these vehicles were lost for good, across the borders of South Africa or to the myriad of chop shops in the ever-growing South African underground. Only very occasionally are stolen vehicles found abandoned on the side of highways, generally stripped of all parts.
Organised crime plays a deft hand in vehicular theft, with specific makes of motor vehicles targeted simply because they are easier to steal and a lot easier to get rid of. Steering locks, gear locks and immobilisers are now mandatory security items that have to be installed if the owner has any intention of qualifying for short term insurance cover. Vehicle tracking has become big business in South Africa, with at least four major companies competing for the ever-increasing market share.
Copper piping, manhole covers, toilets and cable theft in South Africa allegedly costs the nation over R5billion per year.
In short, crime is most certainly out there and those who have not considered theft insurance would be well advised to reconsider their position.
Chadwicks Risk & Insurance Brokers in South Africa is an independent short term insurance intermediary specialising in risk treatment and insurance solutions.
