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Showroom car thefts may not be covered

Jan 25 2011 12:06 I-Net Bridge

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Johannesburg - Criminal gangs looking for expensive vehicles are increasingly targeting car dealerships, an insurance firm said on Tuesday.

CIB Insurance Solutions (CIB) said 11 vehicles were stolen from showroom floors in the Western Cape in the past few months.

"With these vehicles simply being driven away, rather than broken into, many dealerships only find out after the theft has taken place that their insurance does not cover them," it said.

Jeanine Mason, head of underwriting at CIB, says most insurers have a "forcible and violent entry" clause in their wordings, which means a vehicle is not covered unless it has been broken into.

"If someone walks into a showroom and drives off in the car, then the vehicle is not properly covered as there was no forcible entry into the vehicle. As a result, the insurer is unlikely to pay out on such a claim."

The 11 cars that were stolen include a Lexus, Mercedes-Benz, Volvo and Range Rover. 

 
 
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