MSA have in the last few weeks received many question as to why the personal accident, inclusive of medical expenses, insurance is compulsory this year and we would like to put some things in perspective as such decisions are never taken lightly.  It is correct that you are now required to take out personal accident, including medical expenses insurance, in addition to, any medical aid cover you may have.

MSA have been placed in this position due the claims history of the scheme. The insurance scheme has a claims ratio of 113% over the last three years. That means the insurers have paid out 113% of the premiums they have received over the last three years. This makes no business sense. They will only renew if the scheme is compulsory. Via our brokers we requested them to obtain quotes from other niche personal accident insurers.

The responses were the same as the brokers are obliged to disclose the history of the scheme, but the quotes from the other insurer’s received bordered on double what we eventually negotiated with our current insurer.  Some companies even declined to quote on the basis of the past claims history disclosed.

Other organisations may offer cheaper cover, but not as comprehensive. They have, as yet, not experienced injuries, especially in motorcycle sport. As the claims go up so will the cost, whereas, we have a comprehensive history showing the nature of deaths, disabilities and medical expenses, which are unfortunately an inherent association with our sport.

What should MSA do? Do we cancel the scheme in totality and have competitors die in public hospitals, like has happened when they did not have cover? Do we try our best and strike a deal with the insurers?  We took the route of negotiating the best deal as we have a responsibility towards our competitors.  We understand this is a grudge purchase and the only time you realise the value is when you are injured and no one actually wants that. In doing what we have done we have negotiated the best rate which equates to R100 per month at a regional and national level. Taking the overall cost of competition into account this is not excessive.

In one case last year we had someone seriously injured and they needed an airlift.  The medical aid in question took their time with the decision as there was a road accident and they trying to decide which was the most serious. Under our “scheme” we are able to call the shots on this particular aspect having been mandated to do so by our insurers. We had an example where someone was critically injured and if it was not for our insurance covering the shortfall over the medical aid at that time the person would really have been up the creek without a paddle. Injuries can dry up your medical aid benefits and then what happens to the rest of one’s family?  I can give you many other examples, but following the experiences we have had and notwithstanding the fact that the insurers have insisted on the cover being obligatory, the recommendation from our Medical Panel was also for the cover to be compulsory.

We did negotiate the following:

•    The medical expenses cover is the primary “accident: cover, and therefore you claim here before claiming under your medical aid, thus, conserving your medical aid for you and your family throughout the year; Please note, whilst some medical aids do  cover motor sport activities, some certainly do not !!
•    Cover now applies whilst attending at any event held under the auspices of MSA, and no longer not just whilst practising or racing. It does, however, exclude commuting to and / or from an event;
•    Base medical expenses cover increased from R80 000 to R150 000 for each instance.  This means the benefit applies each time you have an accident, so its  unlimited during the year, but limited to R 150 000 per accident / claim.;
•    24 month claim window.  If you are injured and there are complications at a later stage you can still claim within the 24 month window;
•    Additional Death Benefit – R 20 000
•    Body Transportation – R100, 000;
•    Child Care – R75 per day for 28 days, max R4, 000;
•    Claims Preparation Costs – R 10 000
•    Disappearance or Exposure during an event
•    Emerging Transportation / Rescue Costs – R100, 000;
•    Life Support – 3 months after expiry of 24 months;
•    Life Support Equipment – R10, 000;
•    Mobility – R100, 000;
•    Passive War;
•    Permanent Disfigurement;
•    Rehabilitation Costs – R10, 000;
•    Repatriation Costs – R 100 000
•    Search and Rescue Costs – R10, 000;
•    Temporary Driver – R1, 000 per week, max R 10 000; and
•    Trauma Counselling – R250 per visit max R10, 000 per annum.

One further fact that has to be made clear:  This is medical expenses insurance following an accident at an MSA event, and not a medical aid. The medical aids work hand in hand with the scheme.  In fact, the largest medical aid in the country has claimed against our  insurance in the past as they had paid out for a competitor who had both.  Our insurance paid out to the medical aid scheme and this no doubt saved the competitor some benefits. You cannot get paid twice for the same thing, but the one complements the other.

The purpose of the personal accident and medical expenses insurance cover being granted under MSA Group Personal Accident policy is intended to provide protection against such claims actually going against one’s medical aid in the first instance, and as mentioned earlier it therefore allows the individuals medical aid to deal with other accidental and/or illness events taking place throughout the year.  Where the medical aid does allow for motor sport activities, then the cover they provide should be regarded as “top of cover, which in turn then, protects the overall medical aid benefit for the competitor and his/her family.

Yes, it is our job to grow grass roots motorsport but it has to be done in a responsible fashion. We are all responsible for the growth and sustainability of the sport I include each and every competitor in that as I am one and have been my whole adult life. We have separate licence schemes for first time competitors and introductory and charity events. We will always assist where we can, but at the same time whilst we compete in the sport, we as fellow competitors also have to realise and share in the duty of caring for the safety and care of our fellow competitors who are not necessarily able to obtain any form of insurance.

Francois Pretorius
Chief Executive Officer