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Johannesburg - The government's plan to suspend the licences of motorists who repeatedly broke the law could eventually lead to the lowering of insurance premiums, an insurance firm said on Thursday.
Leigh Friend, Gauteng Regional Manager of MUA Insurance Acceptances, said efforts to clamp down on motorists who excessively broke speeding limits were necessary to bring down the volume of fatal accidents.
A drop in the number of accidents should see fewer insurance claims, thereby improving the risk profile of motorists in South Africa.
Friend said many factors were taken into account when calculating the premium on a motor vehicle.
However, if there were fewer road accidents, it was highly probable that there could be a reduction in motor insurance premiums in the future.
According to the department of transport, changes to road traffic legislation - due to come into effect in February 2011 - included automatic suspension of driving licences for anyone who is convicted of driving more than 30km/h over the speed limit in urban areas and more than 40km/h over the speed limit outside urban areas.
The act also states that all minibus and midibus vehicles transporting paying passengers must be fitted with a directional stability control device - an expensive piece of hi-tech equipment that minimised the risk of losing control of the vehicle when braking suddenly.
Statistics released by the Road Traffic Management Corporation for 2009 showed the number of fatal accidents rose marginally by 52 to a total of 10 857, equivalent to 30 fatal road accidents every day.
The amendments to the National Road Traffic Act would also see an end to the current arrangement whereby motorists who obtained a driving licence for a heavy motor vehicle can automatically qualify to drive a light motor vehicle on the same licence.
The Administrative Adjudication of Road Traffic Offences (Aarto), the points demerit system being introduced next year, will penalise drivers by putting points on their licence and may also lead to the suspension or cancellation of repeat offenders' licences.