DSP Benefits to customers: Boasting ground breaking risk management solutions for the 21st century vehicle owners – DSP settles the full outstanding amount owing on the vehicle at date of total loss, including residual/balloon payments for uninsured financed vehicles. Conversely, financed vehicles insured elsewhere also enjoy credit shortfall cover at no extra cost to the customer. In addition, DSP provides unprecedented peace of mind by guaranteeing to pay customers no less than the full retail value, if the vehicle is not insured elsewhere for that purpose at total loss date. Customers further enjoy physical risk protection of their vehicles against theft/hijacking through mandatory tracking devices supplied and maintained by the DSP approved service providers, at DSP's expense. To crown it all, DSP preserves the value of a customer's vehicle by settling the full amount by which it depreciated since the inception date of DSP cover and the date of total loss.
DSP delivers unique value to private and commercial vehicle owners through strong strategic alliances with carefully selected market leaders. The DSP product is developed and delivered by Phik'a (niche product specialist and the Intellectual Property owner of DSP), underwritten by Centriq (a subsidiary of Santam) and reinsured by Hannover Re Africa (a subsidiary of the world's 3rd largest reinsurer). DSP is managed and administered by VMP, a specialist Underwriting Management Agent (UMA) of Centriq. MiX Telematics, a leading global provider of fleet and mobile asset management solutions, is the approved tracking device service provider for DSP.
"Succinctly put, DSP is designed to employ physical risk control measures through mandatory, approved tracking devices at no additional cost to consumers, therein complementing our efficiency in risk financing principles. This holistic approach to risk management delivers tangible and cost effective value to consumers in the current day commoditised vehicle insurance market. Economies of scale, as well as strong strategic alliances, are critical differentiators for us to sustain the DSP concept as forerunners in this new path we are paving. There's no doubt that the insurance industry desperately needs new approaches to risk management and restructured solutions to address the needs of all vehicle owners, including over 65% of registered vehicles on our roads that have no insurance at all or are underinsured in some way (as per the Financial Intermediaries Association of SA). We are excited to present DSP to the market, with many more to compliment it in the not so distant future, in order to continue providing tangibly unique value for consumers," says Motumi Molewa, CEO of the Phik'a Group.
"In a market with little scope for differentiation such as vehicle insurance - it is critical to cut through the clutter and bring forth an era of change if we wish to remain successful on a sustainable basis. We believe that DSP offers affordable physical risk and financial protection for customers by bringing market innovation to the fore, in partnership with leading industry players," concludes Molewa.
So how do customers acquire DSP?
The minimum criteria for consumers, both private and commercial, to take advantage of this cover, include:
1. The vehicle must have valid Mead and McGrouther (MM) code and retail value as per the TransUnion standards and should be registered as code 1 or 2.
2. The vehicle must be fitted with an approved tracking device supplied and maintained by a DSP approved tracking company (MiX Telematics), before cover incepts.
The DSP approved tracking device:
a. The tracking device is supplied free of charge to all vehicles insured by DSP.
b. DSP is responsible for all contractual and service level agreements with the approved tracking company to ensure customer protection and peace of mind.
c. The approved tracking company is responsible for ensuring that the installed tracking devices are always in good operational condition in order to optimize chances of recovery in the event of theft/hijacking.
d. The consumer is however obliged to co-operate with the DSP approved tracking companies during the installation and maintenance of tracking devices – failing which DSP cover is automatically cancelled.
e. Customers are free to cancel the DSP policy without further obligations to keep or pay for tracking.
"This too is a first for the insurance sector, where traditionally a tracking device is a direct contractual agreement between the provider and the customer. We are very proud to have been chosen as a partner of Phik'a, in providing the market with such a unique offering and believe that our brand is synonymous with strong market innovation, such as this," says Brendan Horan, Managing Director of MiX Telematics (Africa).
"Our vehicle tracking and recovery devices are optimised to perform to the high standards and requirements of the DSP offering and we expect the uptake in the market to be significant, given the value proposition of this product to the larger market and the financial security such cover provides the consumer – be it a private or commercial client," concludes Horan.
The infographic1 attached provides a comparison of how DSP would work for both insured and uninsured customers.
1 Please note these are merely examples and the figures are not based on actual values and/or periods of time.