Insurers use, as an underwriting tool, a list that rates the effectiveness of the factory-fitted security systems of cars manufactured since 1996. However, you, the consumer, have to pay a monthly fee of R70 to access the list.
Charles Pillai, the Ombud for Financial Services Providers, says it is ridiculous that you have to pay for a copy of the list, as any arrangement that affects consumers should be transparent.
Last week, Pillai criticised the insurance industry and motor manufacturers for the ambiguity over anti-theft devices required for insurance and the absence of a common list of the security devices required by insurers.
"Such an opaque arrangement only lends itself to the confusion surrounding car insurance and the different security measures required by different insurers. Considering the millions of cars on the road, it is clear that it is in the consumer's interest to have such a list made public so that consumers can make informed choices when purchasing vehicles," Pillai says.
The vehicle security system (VSS) list covers 95 to 100 percent of cars currently on the road.
You need to be aware of the security devices required by your insurer when you buy a car or when you switch insurers. If, for example, your insurer asks you to fit a gearlock to your car and you fail to do so, this could result in your insurance claim being turned down.
When you take out car insurance or switch insurers, you may be asked to take your car to an auto assessment centre, where the security features are verified.
The cost of the assessment when you switch insurers is usually covered by the insurer.
Last year, the South African Insurance Association (Saia) outsourced the administration of the VSS list to the South African Independent Accreditation Services (Saias).
Trevor Devitt, the communications manager of Outsurance, says he agrees with Pillai that there is a definite need for proper advice about anti-theft devices.
Devitt says Outsurance is particular about giving clients specific details of any security requirements and how these requirements affect their cover. It also follows up with clients to ensure that any terms and conditions have been met so that the client is covered, he says.
"The VSS list is not really a uniform list, and not all insurers use it as the absolute guideline. Insurers also take into account the data at their disposal and their own claims history on a particular car model.
"When deciding on the security requirements, each case would also have to be assessed individually, based on factors such as the area where you live, where you park your car at night and whether or not you use your car for business ," Devitt says.
Refilwe Moletsane, the deputy chief executive at Saia, says the VSS list was never intended for public use but is an underwriting tool drawn up in terms of an agreement between the National Association of Automobile Manufacturers of South Africa (Naamsa) and Saia.
Nico Vermuelen, the director of Naamsa, says the VSS list was introduced in 1996 amid growing pressure from insurers.
"We (car manufacturers) were told in no uncertain terms that insurers were prepared to insure cars only if an approved security system had been installed, due to the high levels of theft and hijacking in South Africa," he says.
Vermuelen says manufacturers responded to this demand by installing security devices at manufacturing level, because this proved more cost-effective than installing a security system as an "add-on" feature.
The criticism by Pillai about the ambiguity in insurers' requirements for vehicle anti-theft devices relates to a complaint over an insurance claim for a 1995 VW Jetta Cli.
When Martinus de Jong of Gauteng insured his Jetta with Santam, one of the policy requirements was that De Jong install a gearlock approved by the Vehicle Security Association of South Africa. He later switched his insurance to Mutual & Federal, and this policy required that the vehicle be fitted with a gearlock approved by the Accredited Bureau for Security within 14 days of the cover commencing.
De Jong did not have a gearlock installed, and he told Pillai that his broker had not informed him of the conditions of the Mutual & Federal policy.
After De Jong's car was stolen and Mutual & Federal rejected his claim, Pillai asked the South African Insurance Association (Saia) for its opinion on the Jetta's factory-fitted security system.
Saia consulted the vehicle security system (VSS) list (see "How the vehicle security list works") and found that the 1995 Jetta Cli was not on it.
However, Volkswagen confirmed that the security system in the 1995 Jetta Cli was the same as the one in the 1997 Jetta Cli, which was on the VSS list, and that hence the system in De Jong's car was VSS-compliant.
Pillai said this apparent inconsistency between the insurers, an insurance body and a manufacturer compounded De Jong's confusion over whether or not his car's security system was sufficient for insurance purposes.
Vehicle manufacturers submit lists of the security features fitted at factory level to different models of cars to Saias.
Chris Bezuidenhout, a Saias director and consultant, says his company checks and rates the effectiveness of the security systems, which include immobilisers and transponders (keys with a microchip that contains a special code that works only in your car).
"The rating takes into account various factors, such as whether the security features are linked to control the engine and how effective the factory-fitted security system is. The cars are then rated on a points system, and the VSS rating list is distributed to insurers via the South African Insurance Association," he says.
The VSS rating of your factory-fitted security system is one of the factors that an insurer considers when deciding if your car needs an additional security device, such as a gearlock or a tracking device.
Trevor Devitt, the communications manager of Outsurance, says the VSS list is not the sole reference for insurers, nor is it the only factor that influences the cost of your premium.
Brokers and members of the public who want to access the VSS list have to pay Saias a monthly subscription fee of R70. You will be allocated a code to access the VSS list on the Saias website.
Bezuidenhout says the VSS list includes cars manufactured locally and imported cars.
Vehicles on the VSS list include Alfa, Audi, Bentley, BMW, Cadillac, Chery, Chevrolet, Daimler Chrysler, Jeep, Dodge, Citroen, Mitsubishi, Daewoo, Daihatsu, Fiat, Ford, Hyundai, Hummer, Isuzu, Jaguar, Kia, Landrover, Lexus, Lotus, Mahindra, Mazda, Mercedes Benz, Nissan, Opel, Peugeot, Proton, Renault, Saab, Seat, Smart, Subaru, Suzuki, Tata, Toyota, Volkswagen and Volvo.
(The list is constantly updated as new models are manufactured and added to the list.)
In his ruling last week, Pillai queried why insurers Santam and Mutual & Federal had insisted on different security requirements for the same car, a 1995 VW Jetta Cli.
The Santam policy required a gearlock approved by the Vehicle Security Association of South Africa (Vesa), whereas the Mutual & Federal policy required an Accredited Bureau for Security (ABS) gearlock.
Bezuidenhout says that ABS carries out security system testing on behalf of Vesa, so Santam and Mutual & Federal had in fact required that the same gearlock be fitted, but each insurer had used a different point of reference.