Microlight Insurance

[Air Hog]

The majority of us are flying without comprehensive insurance on the Microlight because it is too expensive. About Two months ago, I have asked my Broker to investigate Insurance for Microlights. Here we are talking the less expensive Microlight market.
She had now come back to me and it looks like they can do something for us.
How it’s going to work is that they will want your complete portfolio: Car, house content etc. Each application will be handled individually.
Here is an extract from the mail received:

“Unfortunately we would have to look at each one but as you can see we would probably be able to accommodate all of them...we just need to remind them that we would need each client’s full portfolio...maybe ask them to try and get hold of a sample of 3 or 4 clients details so we can quote...then we can take it from there.”

Let’s give it a try. Please contact Daleen at: Daleen AT deogratiabrokers dot co dot za because I believe that if they see what the potential market is, we might get a surprise.

[nicow]

My trike is insured by Santam-and thats only my trike by them.

[Air Hog]

My trike is insured by Santam-and thats only my trike by them.

Hi Nico, how much per month?

[Loco]

My trike is insured by Santam-and thats only my trike by them.

Hi Nico, how much per month?

Hi in the wake of recent happenings I'm also very interested in this please, any idea of cost / contact details for a quote please?

I was just pondering the viability of us starting our own "scheme", suppose:
- We get 100 people to be part of the scheme
- R100,000 to be the average market value per trike
- Each policy holder pays 0.5% of the trike's market value as monthly premium, e.g. R100,000 = R500/m
- The pot would get approx R50,000 credit each month
- To make the guys not claim too much (take advantage) we impose a 4% flat excess for all claims, e.g. R100,000 = R4000
- If we have more incidents than the pot can cover we have a waiting list and as the money comes in we pay out in order

So if you take Bundy/Stef they would have only had to fork out R4000 and they would be on the way to recovery ASAP

If this could work who would run this / what would the administration cost be?

Taking into account the last 2 years incidents would this be feasible?

Anybody with knowledge in this are please help me out

It could almost function like the road accident fund but just for our community?

Thanks
Ant

[John.com]

Hi Ant,

Great idea . . . kinda like a "Trike Stokfel"!!

However, the administration of schemes like these are always troublesome and end up becoming fraught with politics (you know, who got paid and who didn't, and who decides, etc.), so my advice would be to try and get an insurance company to do a group scheme for the microlighting fraternity and spread their risk in that way. They would then re-insure the risk and cover themselves in that way!

I was advised that Alexander Forbes has a microlight (light aircraft) insurance scheme. I will follow up and report back.

Cheers for your initiative!

John

[Loco]

Thanks John yes a microlight "stokvel"!

Please let me know what you find out

Wouldn't it be amazing if MISASA could help us get something like this going?

Cheers
Ant

[KlapperKnop]

no sure if you aware of www.jankelow.co.za; the specialise in microlight and LSA insurance.

[Bundy]

Very interesting, something I will follow closely.

When I entered into a partnership on our trike, we knew there was a risk that something like this would happen. We chose not to look at insurance because of the cost/avalability of decent cover. The whole reason why I am in a partnership is because it was simply impossible for me to afford to buy on my own... (still is ), let alone a R1000 or so a month for "insurance"

1: What will the cost be?
2: I would love to know how many aviation claims are actually honoured ?
3: Would they pay out in a reasonable time frame? Or do we have to wait 3 years for the CAA to get the report done?

Fact is, we are not talking about a Cessna here. We are talking about the average Trike investment of R100k and under. we were simply unlucky.... We could have gone many happy hours/years without serious incident in which case we would probably have "paid off " our R80K investment twice with the insurance Co? Is it not better to simply manage your own "insurance premium" of R500 a month? This way after a few short years you will have enough to replace your trike in any case? All about your financial position and the financial exposure you you are willing to take. Stef had an expensive "oops"....(probably better described as a " LIEWE BLIKSEM EINA F@K MOER" )..... but it is not a life threatening (financially speaking) incident that cannot be recovered from.... even though he may have to trade his Double cab in for a Corsa and pimp his wife out for a while!

Anyway, I will reserve final comment when the above 3 questions have been answered.

Bottom line, insurance as in the first posting here will only be viable if the Co includes other "low risk" items as part of the insurance portfolio, but...its not as plain and simple as that. I look forward to the findings..

[Loco]

Hi Bundy

Yeah people could each save for themselves

E.g. if you put R500 away "under your mattress" each month then in about 16 years you would have saved up about R100,000

With a scheme such as this you join today, tomorrow you have an incident, you will be fully covered (it's almost just like normal insurance, the premium is money you "write off" to have peace of mind )

Some thoughts / questions:
- Administration costs could make it economically unviable, how can this possibly work the best?
- We need commitment of at least 100 memebers to make it economically viable no? e.g. R500/m x 100 members = R50,000 gross income/m
- Such a sheme needs to be run like a non-profit company, with an elected board and constitution?
- In order to claim the member's fees and licenses must all be 100% up to date and paid up
- Only claims for incidents/accidents will be covered (no maintenance related claims)
- No claims will be concidered unless reported to the CAA - payout is not dependant on the outcome of the CAA report?
- Before paying out the incidents/accidents needs to be reviewed and approved by an appointed group of trustees?
- As mentioned previously if the fund is depleted the claims will be paid out in order as/when funds become available
- etc.?

Please could someone tell me if MISASA would be willing to assist in getting this going and even possibly run with it? Or who should we approach to discuss the viability?

Cheers
Ant

[Bundy]

This is what happens when you post crap on the forum at 03h37 in the morning...

The brain is not yet awake... I admit my fault, R500 a month into a kitty will not really help you if you have an oops in the first year (like us)...My Bad!

Anthony, I like the idea, but what you are talking about will not be able to be managed by Misasa for a number of reasons. Lack of manpower,(remember the commitee is run by volunteers... and I cant see many putting their hands up to run an insurance scheme )
I also think that to provide the kind of scheme we are discussing here, the Co or Organisation has to be a registered Financial services provider. It will also need to have vast legal backing and permanent paid staff and investigators, able to operate nationally? Not so simple...and costs big bucks.

I think Air Hog is definately on the right track. If an established FSP (Insurance Co) can group a clients risk together then it may just become a bit more affordable. Car +contents+ Plane etc.... If they can provide comprehensive accident cover with reasonable excesses for under R800 a month, then I think a lot of trikers will sign up... me included

[Loco]

Hi Bundy, oops sorry I'm still a newb, makes sense what you say that a financial institution cannot be run by a group of volunteers!

Didn't want to go over MISASA's "heads", guess we should sill get their blessing with this venture

I'll try run this idea past my insurance broker & see what he comes up with...

I'll also try get quotes from these guys

http://www.alexanderforbes.co.za
http://www.flightsure.co.za/
http://www.jankelow.co.za/
http://www.gib.co.za/prod-aviation.php
http://www.airborneinsurance.co.za/aviation_team.html

Cheers
Ant