Data released by Stats SA on Thursday showed that on a quarterly basis, growth declined to 12.9% y/y in Q2 2011 from 15.3% y/y in Q1 2011.

Household balance sheets have come under increased pressure as a result of sharp rise in essential consumer goods prices, including food and fuel, in recent months.

Although the FNB Consumer Confidence Index improved to 11 points in Q2 2011 from 9 points in Q1 2011, the decline in vehicle sales growth, coinciding with the decline in household credit extension growth, to 6.9% y/y in Q2 2011 from 7.1% y/y in Q1 2011, is telling of a gradual weakening in household consumption demand.

Growth in new vehicle sales declined to 18.4% y/y in Q1 2011 from 24.1% y/y in Q1 2011.

Nevertheless, the used vehicle sales market is likely to benefit from the tightening in household balance sheets, generally providing vehicles at a lower cost than the new vehicle sales market. In addition, carbon emissions taxes do not apply to the used vehicle market, further contributing to the financial save.

Used vehicle sales growth was a major driver of the rise in total motor trade sales growth in June, rising to 20.7% y/y in the month, from 6.6% y/y in May 2011. Used vehicle sales growth improved to 10.5% y/y in Q2 2011 from 9.5% y/y in Q1 2011. The slight recovery in new vehicle sales prices in recent months is likely to contribute to an upward trend in the used vehicle sales growth.

While a gradual decline remains most likely for motor trade sales in the remainder of the year, the favourable interest rate environment is likely to maintain an adequate level of demand in the sector, preventing a negative sales growth. This should contribute positively to related manufacturing sectors in the economy for some time to come.

BusinessLive.co.za

Savvy Old

LV=, which used to provide the insurance for Help the Aged, will now offer cover to travellers of any age at what it claims are competitive prices.

The insurer claims its prices are market-leading. For instance, a 86-year-old woman going on a fortnight’s holiday in Spain would pay £86.07, while an 81-year-old man with high blood pressure, age 81, travelling to France for one week with optional golf cover would pay £71.32.

LV= said it would also insure travellers with a wide range of medical conditions, some of which will carry just a minor or no increase in cost. Travellers with medical conditions do not need to go through an in-depth medical examination and will only be required to fill in an online form or have a telephone interview.

The LV= travel insurance policy provides up to £10 million in emergency medical expenses, up to £5,000 per person for cancellation costs if a traveller or relative falls ill, cover for alternative accommodation if the original accommodation is affected by a natural disaster and a 24-hour helpline.

Policies are available for individuals as well as couples and groups of up to 10 travellers. Additional cover can also be added for golfers and couples getting married overseas.

John O’Roarke, managing director of LV= travel insurance, said: “Many people tend to travel more as they get older as they have more disposable income and more time to take holidays. However, some insurers still continue to limit policies to younger travellers.”

The single trip policy, which insures travellers for trips of up to 90 days’ duration, is available online and via the telephone for travellers of all ages.

Many drivers are knowingly risking their car insurance packages, research has shown.

New research has shown that thousands of motorists in the UK are endangering their car insurance policies and driving illegally through giving their providers false information or not providing important personal facts.

According to a study conducted last week (January 19th 2011) by the Association of British Insurers (ABI), many people are running such risks with their annual insurance or breakdown car cover packages, which could lead to them being hit with a criminal conviction.

In addition, the ABI warned that these individuals may also be blacklisted in terms of gaining insurance in the future and could face difficulty in obtaining other financial products, such as credit.

For example, the organisation’s research established that more than half – 53 per cent – of road users believe it to be acceptable to insure a vehicle in the name of an older and lower-risk driver when they will not be the primary user of the car.

Robin Reames of swiftcover.com commented that this trend is causing premiums for all drivers to go up.

Which4U.co.uk

car crash

The average insurance customer will accept a rise of 8pc in their annual premiums before they decide to switch to a more competitive deal, according to Virgin Money.

The research also found that 45pc of policyholders did not shop around. Those who did spent an average of almost five-and-a-half hours looking for a better deal on their annual renewal.

Consumers were typically prepared to put up with a rise of 7.4pc in car insurance quotes before deciding to shop around. The figure was 8.6pc for contents insurance and 8.4pc for buildings insurance.

The company calculated that, if all motor policyholders in Britain who shopped around moved from their current policy before the 7.4pc trigger level, over £1.4 billion a year could be saved on car insurance renewals.

The average comprehensive car insurance policy costs close to £800, Virgin said, adding that costs were rising, partly because of the increasing prevalence of personal injury claims.

With home contents insurance costing an average of £73 and buildings insurance costing around £133, triggers of over 8pc on home contents and buildings insurance could potentially lead to savings of over £103 million each year, according to the research.

Kieran Hartigan, managing director of protection at Virgin Money, said: “Searching for insurance renewal quotes can be a bit of a chore but a massive £1.5 billion each year could be saved.”

One million skiers and snowboarders will head to the slopes this winter without adequate insurance, according to a new survey, potentially leaving them facing costly medical bills.

Even in these more austere times, winter sports holidays remain popular and many people are now planning this year’s break.

But according to the Ski Club of Great Britain, more than half of those heading for the slopes won’t bother with travel insurance. And of those who do have insurance, only a quarter will check the terms and conditions to ensure they are covered for winter sports activities.

Given the high rate of injuries on the slopes, you would think a comprehensive insurance policy would be seen as essential as ski googles and gloves. But, surprisingly, many people don’t bother with this insurance because they don’t think it would pay out in the event of an accident.

According to Axa, one of Britain’s largest travel insurers, in a recent survey of skiers and snowboarders, one in five (19pc) said they believed an insurance policy would not pay out for injuries and one in three did not believe cover would be provided for transport home if injured.

Needless to say, both of these events should be covered in full on a comprehensive winter sports holiday.

Much of the confusion may arise because of the European Health Insurance Card (EHIC).

All holidaymakers travelling to Europe are advised to get one of these cards, as they cover some of the cost of medical treatment in Europe. But they are not an adequate substitute for insurance. For starters, they only offer up to 80pc off medical bills in hospitals that accept the card.

However, there is no guarantee that in the event of an accident you will end up in a hospital that participates in this scheme. Dr Tim Hammond, from medical assistance provider CEGA, said: “If you are injured on the slopes, resort pisteurs will probably take you straight to a private clinic, where the EHIC care will not cover your medical treatment.”

Even if you get to the equivalent of an NHS hospital, the “free” medical treatment available may be a lot less than what we are used to in Britain. The EHIC card won’t pay for any transportation costs either – either to hospital, or for repatriation back home. So while it makes sense to take one, it is also essential to buy comprehensive insurance.

This insurance should pay for most medical expenses incurred abroad, which will include those not covered by an EHIC card.

Skiing and snowboarding injuries are relatively common. The Association of Mountain Doctors in France said it dealt with 140,000 injuries last year; and according to the Axa survey, about a quarter of those who have been on a winter sports holiday have suffered some kind of injury – and the cost of treating these can soon escalate.

Many need evacuation from the slopes (which certainly wouldn’t be covered on an EHIC card), then there is the cost of any treatment, such as X-rays, operations, and in more serious cases, transport home.

For those holidaying in the ski resorts of Europe these costs can easily top £25,000 – and it is even higher for those needing medical treatment and flights home from America and Canada.

But what should you look for in a winter sports policy?

First off, check you are covered for these sports. Many people rely on an annual policy, which won’t necessarily cover these activities. If you already have an annual policy, it is worth contacting your insurer. Most will add on this cover, for a fee of course.

Check it covers your holiday destination. This may sound obvious, but some people buy winter sports cover, thinking this will cover them wherever they go skiing or snowboarding. But if you have European-only cover it’s obviously not going to cover you for skiing trips in Whistler or Aspen. People who simply renew an annual policy each year, without really checking what they have, could potentially fall into such traps.

Aside from the medical cover, you also want to make sure the policy has personal liability and legal expenses cover. This will cover your costs if someone injures you and you need to take legal action against them; likewise it will cover you if you are involved in a collision and someone wants to sue you.

Retired skiers should also check that their insurance still covers them, particularly if they have “free” insurance with either a bank account or credit card. Many of these only cover people up to the age of 60, for example.

Keen winter sports enthusiasts should ensure that their policy is tailored for all activities. Off-piste skiing, for example, may not be included, or only if you are with a registered guide. Likewise, there may be insurance restrictions on activities such as tobogganing, ski touring, glacier skiing, heli-skiing or even racing.

A spokeswoman for the Ski Club of Great Britain said: “Even if you are or your children are taking part in fun races with the resort’s ski school, these may not be covered. Many policies do not cover racing, not even recreational races.”

Other areas to check include whether there will be payouts for closed pistes, either as a result of high winds, too much or not enough snow.

A winter sports policy should also include cover for lost baggage, and cancellation and curtailment of your trip – as you would find on any standard travel policy.

Continue reading here:
Buy private insurance to fund care in old age, Dilnot Commission suggests

Read more:
Health insurance: is your body fully covered?

Credit card fraud

Total fraud losses on credit and debit cards dropped by 20 per cent year-on-year during the six months to the end of June to £186.8 million, according to the UK Cards Association.

The group attributed the drop to a range of initiatives, including the roll-out of updated chip and pin cards, and work with retailers to help them protect payment equipment from criminals.

Growing numbers of consumers are signing up to schemes such as MasterCard SecureCode, which makes it harder for fraudsters to use their cards over the internet, while banks are also increasingly using fraud detection tools.

Losses in all areas of card fraud fell during the six months, apart from fraud involving cards that were lost in the mail, which rose by 9 per cent to £3.8 million. The research was unable to explain this increase.

Counterfeit fraud – where the details of cards are skimmed to produce cloned cards – saw the biggest decline at 39 per cent to £28.2 million, and losses due to identity theft were 37 per cent lower at £15 million.

Fraud on lost or stolen cards was down by 15 per cent, and card-not-present fraud -where criminals use people’s cards to buy things over the internet, telephone or through mail order – dropped by 12 per cent.

Melanie Johnson, chairman of the UK Cards Association, said: “These figures are testament to the importance that the UK’s card companies place on driving down card fraud losses and reducing any inconvenience to customers.

“We are determined to make sure that customers feel as safe and secure as possible when they use their cards. To that end, the banking industry is committed to detecting and preventing card fraud in all its guises.”

Telegraph.co.uk

A recent study showed that more than six in ten British women have no life insurance cover to protect the financial security of their families. They know they should take out a policy, even if they are not the bread winner of the family, but keep putting it off because they find life insurance and its myriad nuances daunting.

Policies are created to suit different life-styles and are supposed to make life easier. Well, they do if you start off with understanding the main two types, generally known as term insurance and whole life insurance.
Term Life Insurance

This is designed to give you or your dependents a specific sum of money if a specific event occurs – death or terminal illness – within a specified time, which can be anything from one to thirty or more years. You decide how long you want the cover to last.

The up side is that this is usually the cheapest kind of life insurance cover you can choose. The down side is that if you are still alive and well at the end of your agreed term, you don’t see any money back.
Whole Life Insurance

You can expect this type of cover to be more expensive and is often referred to as an assurance policy because sooner or later you will get a payback.

In the event of you becoming terminally ill or dying, the people you care about will receive the amount of money due at that time. But if your circumstances should change, you may have the option of cashing in your policy and getting a lump sum. This will not reflect how much money you have invested but could boost you financially if you hit a rocky spot. This is one of the reasons why life insurance counts as a financial asset. Another advantage of this is that holding a life insurance plan will improve your credit rating in case you need a home or business loan or medical insurance.
Although, in principle, you take out whole life insurance for the rest of your life, you don’t necessarily end up paying premiums for the rest your life. Most policies will enable you to cease payments at a pre-arranged date, such as retirement, and continue to be fully covered.
Choosing a Life Insurance Policy

First consider who or what needs your support (yes, even pets may deserve a thought). Few people can afford to cover every eventuality so work from the premise of the most important first and then anything else is a plus.

Once you have a basic idea in your head, start looking at the options available. Since you are already on the web, you can start sourcing information right now. Once you’ve decided whether term or whole life insurance suits you better, you can focus on the question of what you want your policy to cover. Most people think of the cost of their funeral, mortgage or rent, outstanding debts, family living costs or even the college and university expenses of their children. If you opt for critical illness cover in addition to either your whole life or term life insurance, the insurance company will pay you an advance should you be diagnosed with one of the critical illnesses defined in your policy.

But don’t be afraid to take your time and mull over exactly what you want and what you can afford. It’s your life, your money, your decision.

With more people submitting inflated or invented claims, insurers are scrutinising all claims more carefully. Honest policyholders may be worried that legitimate claims could be turned down, or take longer to process. But there are steps that all consumers can take to ensure a claim runs smoothly.

1 Be prepared to provide proof

If you have valuable items stolen or damaged be prepared to provide proof you once owned them. A common insurance fraud is simply to “bump up” the value of such items – so a stolen camera becomes a top of range Nikon, and the broken watch becomes a Rolex.

Insurers may ask for photos of these items or old bank statements (which can now be accessed online) as proof of purchase.

Most of us now carry mobile phones that double-up as cameras. This photographic evidence can be used to back up any insurance claim – be it for the dents in your car after a prang, storm damage to your roof, or a flooded kitchen. Such images are useful as they can show the extent of the damage, and be sent electronically to insurers.
2 Keep receipts

If you are replacing stolen, damaged or lost items keep receipts to prove what you have spent. If you don’t, insurers will be unlikely to refund such costs.

Many insurers prefer to source replacement goods themselves – be it new TVs, stolen cameras or even damaged items of furniture – and will be suspicious of policyholders who simply want the cash instead. Similarly, if you are paying upfront for repairs before a claim is finalised keep receipts of all work done.
3 Contact your insurer as soon as possible

If you try to make a claim days or weeks after the event, this will raise suspicions and will lead to delays. Insurers prefer to recommend “approved” contractors as a means of controlling costs. This can benefit genuine claimants – as the insurer is likely to make all relevant arrangements – be it getting your car into a garage, a plumber to your home, or arranging medical help overseas.

If you only contact them after such work has been done, they may refuse to pay, either because the bills are too high, or because they think this is not a legitimate claim.
4 Get a police report

If you have items stolen, you will need a valid police incident number. This applies as much to bags snatched overseas, as it does to major break-ins in Britain. You may think there is little use in reporting such an incident – the police in New York may have better things to do than chase a pickpocket – but without evidence of a crime being committed you won’t get the claim paid. If you don’t know where to go to report such an incident overseas, contact your insurer. Most travel policies have 24-hour helplines, which will offer assistance in such circumstances.
5 Be honest

Don’t embellish your claims with irrelevant details – it’s likely to raise suspicions. But don’t get worried if insurers ask additional questions, they do have to make checks and if you get defensive or obstructive there is more chance that the claim will be turned down flat.

By Emma Simon, Telegraph.co.uk