Johannesburg, 26 March 2020 – Specialist transport insurance underwriting company, CTU, has announced measures to help alleviate the financial burden that the Coronavirus (COVID-19) pandemic is placing upon the commuter transport industry.
Following the COVID-19 update received on 23 March, from South African President, Cyril Ramaphosa, regarding the imminent 21-day Lockdown, and the clarity received through the Government Gazette, on what constitutes essential goods and services, CTU has announced that:
- for the month of April and potentially May, all active CTU policyholders’ insurance risk-premiums will be reduced by 35%, and
- 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, whilst still providing cover, including theft and fire, for when vehicles may not be operating.
“We have already seen the visible impact on the commuter numbers in taxis and busses. 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 & 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. CTU remain committed to the long-term sustainability of the taxi and bus industry and want to do our part in lightening the load on our policyholders during these challenging times,” says Bipin Bhagwan, Head of Sales and Marketing at CTU.
CTU is a specialist insurance Underwriting Manager for the Commuter Taxi and Bus industries, providing a range of comprehensive insurance products, benefits and services following incidents of theft, hijacking or accidents. Established in 1991 specifically to cater to the growing insurance needs of the Mini-Bus Taxi industry in South Africa, CTU has become one of the largest providers of insurance to the wider Commuter transportation industry and continue to grow its Bus, e-Hailing, Metered Taxi, Scholar and Staff transport, Shuttle Service and Tourism transport portfolios. CTUs insurance products are underwritten by The Hollard Insurance Company Ltd and reinsured by Hannover Re.