To help ease the financial burden potentially brought to some people by the slow-down in business during the coronavirus pandemic and national lockdown, Momentum Short-Term Insurance (MSTI) is giving clients early access to R26-million in future no-claims and safety bonuses.
To provide immediate financial relief, MSTI states that clients can now opt to take an early cash benefit from their Rewarder Bonus – no claims bonus – and clients can also opt to cash in early on their safety bonus.
MSTI rewards clients with a cash back safety bonus of up to 30% of their annual car and home insurance premiums depending on their Multiply Status, Safety Score and their number of Safe Dayz. The option to take the early cash back will be available to clients between April and June 2020.
This means that a combined R26-million in future bonuses that would have paid out over the next four years, is available immediately to help lessen the financial burden that clients may experience.
Alternatively, clients can also wait for their normal benefit at the end of the benefit term.
MTSI CEO Brand Pretorius says the company has a significant role to play to assist its clients and to support the efforts of the South African government. “The balance between flattening the pandemic spread curve and keeping the economy ticking over is challenging and we want to help where we can.”
He adds that this early payment mechanism is being introduced to support the company’s clients during this difficult time, but MSTI is also taking into account that not all clients will need it right now.
“We are also giving our clients another option to join us in the collective fight against the Covid-19 pandemic by donating their cash benefit to the Solidarity Fund which was established by the President.”
The Solidarity Fund will focus on combatting the spread of the virus, help to track the spread, care for those who are ill and support those whose lives are disrupted. The fund will be administered by a reputable team of people drawn from the financial institutions, accounting firms and government.
Further, the holding company of MSTI, Momentum Metropolitan, on March 18 committed R5-million in financial support for government’s initiatives aimed at preventing and containing the impact of Covid-19.
Meanwhile, commuter taxi and bus industries specialist insurance underwriting manager CTU reports that for the month of April, and potentially May too, all active CTU policyholders’ insurance risk-premiums will be reduced by 35%.
In addition, no inflationary risk-premium increases will be processed for April and May but will be deferred to June.
These measures are in place to help ease the financial burden that Covid-19 has placed on its policyholders, while still providing cover, including theft and fire, for when vehicles may not be operating.
CTU sales and marketing head Bipin Bhagwan says there has been visible impact on the commuter numbers in taxis and buses even before the 21-day lockdown that started on March 26.
“We understand the hardships that our industry is facing by the prospect of reduced commuters. We are also very conscious of the vital role of taxis, busses and their drivers, in enabling South Africa’s essential goods and services workforce to travel to and from work, as well as enabling the consumer who needs transport in order to acquire essential goods and services.”
He adds that CTU remains committed to the long-term sustainability of the taxi and bus industries, with CTU wanting to do its part in lightening the load on policyholders during these challenging times.