Banks and Insurers to gain control of all movable assets currently not allowed on eNaTIS – aims to reduce fraud
SAMAR announces plans to cover entire life-cycle of all assets currently excluded from registration on the Electronic National Traffic Information System (eNaTIS)
MIDRAND: The Southern African Movable Asset Register (SAMAR) announces that manufacturers, importers, builders, banks, insurers as well as the general public are now able to control title and ownership of all movable assets. Users of the system can anticipate improved availability of personal and commercial financing of movable assets.
SAMAR allows for a record to be kept of various assets and covers the life-cycle of a given asset – including those that are currently not allowed to be loaded on eNaTIS (the Electronic National Traffic Information System). SAMAR creates the most recent reliable record of that asset by updating records in real-time as changes are made by various system participants.
SAMAR’s use by the insurance industry to load their interest against the asset under finance will reduce risk for the banks and related costs. Registering movable assets on SAMAR will facilitate financing that may not otherwise have been available, by providing identifiable data and markings for tracking and control that are admissible in a court of law.
Internet based system with a centralised database:
Asset identification is essential for both financiers and insurers.
The total value of non-motor related movable assets financed and insured is substantial and the risks of double financing and fraud requires additional control.
The identification of these assets in instances where the purchaser owing, and/or in instances of loss due to theft, is problematic for both financier and insurer.
Kyle Dutton, Project Manager at SAMAR commented, “SAMAR’s use by the insurance industry to load their interest against the asset under finance will reduce risk for the banks and related costs. This is extremely valuable as, unfortunately due to lack of the marking of movable assets other than roadworthy and registered vehicles, millions of Rands are lost each year due to multiple financing on the same asset, the inability to claim ownership after an insurance claims pay-out or the inability to recover items in the second-hand market/criminal sales points.”
He continues, “There are not too many options in terms of permanently marking assets in order to identify and confirm ownership. It is however crucial for both the financier and the insurer to be able to have access to a database where the owner could be linked to the specific asset in question, similar to what eNaTIS does in the registered motor environment.”
Regulation 5 of the National Road Traffic Act of 1996 (Act 93 of 1996) regulates that certain motor vehicles are not allowed to be registered on to the National Traffic Information System (eNaTIS). In 2011 the Inter Provincial Policy and Procedural (IPPP) committee, instructed the NRCS to adhere to legislation and stop providing eNaTIS model numbers for those vehicles prescribed in Regulation 5. The vehicles so prescribed are vehicles not designed for public road use, in other words, vehicles that cannot legally pass a roadworthy test. In the banks controls suites the use of “title” on a eNaTIS Registration Document is utilised as the confirmation of the bank’s interest in the asset. Therefore by denying access to eNaTIS for such assets the ability of applying “title” (on mainly “yellow metal”) had effectively been withdrawn. This brought about the development of SAMAR at the request of several of the banks and importers of “yellow metal” assets as a practical solution to the impasse created, however this was not formalized across all the entities and assets involved, essentially this was a stop gap measure. Today the risk officials at several of the institutions involved have asked for the use of SAMAR to be agreed across the industry. www.samar.co.za
Breaking News »
Transformation Collection During COVID-19
While COVID-19 has created havoc on society, this change can contribute to positive opportunities in the way we do business within an enterprise moving forward.
Rapid Collect can assist SME's and ...
Read More »
| || |
Covid-19 shines spotlight on gaping holes in personal risk planning and responding insurance solutions
The Covid-19 pandemic has pulled a critical thread, unravelling the fibre of every economic and social structure, across countries, continents and communities. In the wake of soaring infections, hospitalisations ...
Read More »
| || |
Allianz achieves 2.6 billion euros operating profit in 2Q 2020
2Q 2020 operating profit of 2. 6 billion euros
2Q 2020 net income attributable to shareholders down 28. 6 percent to 1. 5 billion euros
6M 2020 total revenues stable at 73. 5 billion; in 2Q 2020 total revenues ...
Read More »
| || |
Digital transformation in the financial services sector
by Carla Collett, Partner, Peter Grealy, Partner, Nozipho Mngomezulu, Partner, Dawid de Villiers, Partner, Karl Blom, Senior Associate, and Wendy Tembedza, Senior Associate from Webber ...
Read More »
From The Glossary »
| Used to describe shares ranking in some way ahead of the ordinary shares either for payment of dividends or for capital liquidation. A class of share capital that receives a fixed rate of return.|
|More Definitions »|