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Motor Insurance
Wednesday, August 1, 2007
Naughty Natis

The various components of the motor vehicle management system (comprising, in the main, motor vehicle registration and licensing, motor vehicle roadworthiness testing and police clearance) form an important part of the South African economic and service delivery landscape.
According to the SA Insurance Association the illegal re-registration of stolen or hijacked vehicles is known to be the largest single mechanism through which the disposal of these vehicles is facilitated. It says fraud and corruption in these environments are regularly uncovered and it is known to result in the illegal registration of stolen/hijacked motor vehicles, illegal roadworthiness certificates and illegal driving licenses.
It is estimated that 50% of all stolen motor vehicles are re-registered on the National Traffic Information System (NaTIS). This represents +/- 45 000 vehicles annually. The above-mentioned problems fuel the cycle of crime, particularly motor vehicle theft and hijackings, and are also significant contributors to the high accident and death rates on our roads.
The SAIA notes that fraud and corrupt practices have to a large degree been allowed to flourish in the various legislated processes, which govern the registration, licensing of vehicles, driver’s license and testing of motor vehicles and drivers using South African roads. Law enforcement functions have also been rendered ineffective through the abovementioned practices, as well as corrupt practices at the official/offender interface.
The current underperformance, inadequacies and poor service delivery in the different motor vehicle management functions is costing the country tens of billions of rands annually. Complaints (e.g. in the media) regarding bad service delivery, especially at registering authorities, are common and have been so for the last 20 years.
The impact of these practices extends beyond financial losses to individuals, organizations and the country, to loss of life and trauma of the citizens of the country. Further, fraud and corruption is a fundamental contributor to the unacceptably high death rate on South Africa’s roads (through un-roadworthy vehicles and incompetent drivers being given legitimacy through corrupt practices and officials).
A ‘best practice’ management and operational model for motor vehicle registration and licensing has been developed as part of a national program aimed at improving service delivery and combating fraud and corruption in the motor vehicle registration and licensing environment.
The Best Practice Model has been designed specifically to:
 Reduce the opportunity for fraud and corruption
 Improve service delivery
 Increase revenue collection
 Increase levels of uniformity between the various agents
 Improve levels of efficiency and effectiveness
Further information please contact David Lekota at Business Against Crime on (011) 883 0717 or email your enquiry to david@bac.org.za

Copyright © Insurance Times and Investments® Vol:20.7 1st August, 2007
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