No booms, higher premiums
2003-07-22 08:44
Johannesburg - Residents who live in areas where access booms are being removed, may have to pay higher insurance premiums in future.
Their claims may even be rejected if they do not inform their insurers timeously that access booms in their areas have been removed.
Some insurance companies have given policy holders living in areas with access control discounts on their insurance premiums, as the areas are considered low-risk.
Police say these prevention measures are succeeding, because crime figures in access-controlled areas are significantly lower than elsewhere.
The Johannesburg road agency started taking down illegally-erected booms and safety gates last week, sparking an outcry by angry residents' associations.
The South African Insurance Association says the risk profile of an area where access booms are removed, changes.
Residents are responsible for informing their insurance companies of any changes in their suburb so that the risk profile may be re-assessed.
Estate agents also confirmed that the removal of access booms may have an influence on selling property.
Ronald Ennik, managing director of Pam Golding's regional office in Johannesburg, says he doesn't think the value of a house in an area without access control will decrease, but "the house may take longer to sell".