Business Day
Nov 25, 2010

CONSUMERS who have insured their vehicles with Mutual & Federal can look forward to having the carbon emissions tax included in the settlement of their total loss claims on new motor vehicles.*

However, Duane Newman, leader of Deloitte’s climate-change and sustainability service, dismissed the move as a marketing gimmick.*

“It’s a great marketing idea with very little substance. Consumers still have to pay the tax — it’s visible on the showroom floor and factored in the invoice. It is not a sales tax,” Mr Newman said.*

According to Mutual & Federal, the tax inclusion means drivers will not have to dig into their pockets for additional funds to cover the additional tax — which could be R20000 upwards for large cars — if their vehicles are written off or stolen.*

Wayne Richards, group manager for underwriting and product solutions at Mutual & Federal, said yesterday that a number of the company’s products, either automatically or by extension, provide for the full replacement value of passenger and light commercial vehicles if they are less than a year old with less than 30000km on the clock.*

Full article here