Insurance premiums likely to increase with Aarto

There’s been mixed reaction to the signing into law of the Administrative Adjudication of Road Traffic Offences bill. A demerit system will now be used and drivers risk losing their licenses for repeated offences. Courtesy #Dstv403

JOHANNESBURG - The signing into law of the Administrative Adjudication of Road Traffic Offences (Aarto) bill will only increase insurance premiums for drivers.

That's according to Christelle Colman of Old Mutual Insure.

Colman says the intention behind the bill is good as it is a sophisticated system used internationally, but she is concerned about the rollout.

READ: Justice Project South Africa wants Aarto amended

"Implementation of the bill is where there is much concern. If the system is rolled out effectively and is efficient, we will be able to separate the good drivers from the bad. We would like to believe that most drivers on the road are good and they can then benefit from better premiums," Colman says.

A demerit system will now be used and drivers risk losing their licenses for repeated offences.

The transport department says the new law will help reduce road deaths across the country.

President Cyril Ramaphosa has signed the bill into law and it will come into effect when it appears in the Government Gazette.

 

Source
eNCA