Insurers for generic car parts
Key objective is to help consumers save money on premiums
FOLLOWING on the Right to Repair campaign, a number of insurers have started a joint initiative to support cheaper generic car parts.
Original equipment manufacturers (OEM) had cast doubt on the reliability of generic parts.
Gari Dombo, MD of Alexander Forbes Insurance, however reassured that the insurance firms only supported “generic parts that are safe and that would ultimately reduce the premiums that clients pay”. “One could draw a parallel between generic parts and generic drugs which are now generally acceptable and have reduced the overall prices of drugs.”
Dombo said OMEs should be included. “This should be a collaborative effort between all stakeholders, especially the manufacturers, to ensure generic parts perform in the same manner as genuine parts.”
He stressed the importance of streamlining the SA Bureau of Standards’ inspection process for generic parts and thus helping South Africans gain access to safe and affordable generic parts.
“The use of generic parts should ultimately lead to reduced insurance premiums; in fact, some manufacturers have already embarked on producing generic parts as genuine alternatives. We are seeing this not only in motor vehicle parts but glass as well,” says Dombo.
“This is critical in an environment where more than two-thirds of vehicles on South African roads are not insured due to unaffordable prices,” said Dombo.
The key objectives of this initiative would be to ensure that: • consumers can save money by making use of the generic part as they are cheaper than the genuine equivalent; • performance-wise generic parts approved by an insurer will be comparable to the original; • generic parts should be fitted on all vehicles that are out of warranty to save costs; • manufacturers of generic parts will be liable and thus consumers get the assurance that the quality is up to standard; and • generic parts should be more readily available to ensure that clients’ vehicles are fixed faster.