Desperate times call for desperate measures – it’s what has informed government’s drastic action plan of implementing a nationwide lockdown to stop the spread of the coronavirus (COVID-19), and influenced businesses and consumers to take steps to minimise the impact of the pandemic on their futures.
In times of crisis and uncertainty, people often look for ways to cut back on unnecessary expenditure. Cancelling insurance policies are seemingly the easiest and first of these drastic measures. Businesses and consumers are sure to base such decisions on the state of their financial positions during the lockdown and the foreseeable future, but as difficult as it may be, the smart decision is not to make any drastic changes to their insurance policies. It’s during these unprecedented and uncertain circumstances that policyholders need insurance polices the most.
Take vehicle insurance for instance. A policyholder may decide that they would like to reduce their cover to third-party fire and theft cover, or even third-party cover only, based on the fact that they will not be using their vehicle during the lockdown. But the consequences of being involved in an accident, whether during or post-lockdown, without reverting to comprehensive cover again will be catastrophic, as subsequent damage or losses may not be covered.
The same applies to property cover. Policyholders still face the risk of damage or loss in the event of fire, storm, power surge or hail damage to properties, even though they may not be in use or occupied. Cover for theft should perhaps even be increased as policyholders face a higher risk of burglaries and theft by opportunistic thieves looking to infiltrate and raid unoccupied buildings and properties.
SASRIA cover is essential during this time. SASRIA cover protects individuals and businesses that own assets in South Africa, against unique risks such as civil commotion, public disorder, strikes, riots and terrorism. South Africa has a history of political and social activism, and mass action and looting may occur during periods of lockdown and could result in severe damage to property and losses in productivity and income.
Insurance is designed to cover you from unforeseen eventualities. Risks are not always predictable and cannot be scheduled. Cutting back on insurance cover now may cost you more in the long run.
Times are certainly tough, but before taking any desperate measures to reduce your cover or cancel a policy, speak to one of our advisors to ensure you are adequately covered.