MiWay is refunding millions of rands to customers stuck at home during the coronavirus lockdown.
The short-term insurer said it would give back R18 million in total to customers.
“The implication of the extension of the lockdown by a further two weeks is that MiWay is in a position to give an additional 7% premium discount on all motor premiums. This is consistent with the 10% discount we gave for the initial 3-week lockdown,” MiWay CEO René Otto says.
“We believe the right thing to do is to pass this saving of R18 million on to our clients. This brings our total premium reduction to 17% or over R40 million during the 5-week lockdown period.”
This is in addition to over R25 million in premium reduction that was set aside for MiWay clients for the initial lockdown period. For more read: Coronavirus: MiWay Puts Over R25-m Back into their Clients’ Pockets
Furthermore, to help mitigate the financial impact of the extended lockdown and to help maintain a sustainable supply chain, MiWay has set aside over R10 million to assist its service providers.
“We are also extending our relief initiative to our service providers – mainly motor body repairers and towing operators – to protect the insurance value chain,” said Otto.
“Without a strong service provider network, we will not be able to provide world-class service to our clients. The support given to our service providers is in the best interest of our loyal client base.”
Through staff contributions, matched by the company, MiWay will be contributing R1.4 million towards helping families of MiWay staff affected by the COVID-19 pandemic, as well as a donation to the Solidarity Fund.
Otto also followed the example set by President Cyril Ramaphosa and will donate a third of his salary for the next three months to the Solidarity Fund.