Making Sense of: Motor Insurance in Mauritius

We start this column on 'Making Sense of' with a piece on Motor insurance. More articles to follow on similarly confusing topics! If you own any kind of vehicle in Mauritius, you have to insure it to drive it or for anyone else to drive it. Hence, you'll need something called a 'Motor Insurance'. Motor Insurance Mauritius is peculiar in that the products available out there allow you to insure the vehicle rather than the driver. This is different to many other countries in Europe, where the driver has to be insured. This makes more sense because the risk is with the driver not with the vehicle. However, since Mauritian Insurance companies insure the vehicle, they need to hedge for all the risks possible with the car - i.e., the worst driver possible - and therefore charge very high premiums. For example, an Audi A6 say, driven by a mature and safe driver, will cost about Rs. 15K to insure even if the probability of that driver causing an accident is practically nil.

Types of Insurance Cover

Now, when you insure your car you need to be aware of the different types of cover. There are three main types of insurance you can purchase:

• Third-Party cover: this is the minimum cover required the Road Traffic Act. Third party insurance provides cover for the damage that your vehicle accidentally causes to other people's vehicle, property, bodily injury or death. This means your own vehicle (and body + passengers) are not covered! While this kind of cover works for low-risk driving (e.g., single short trips in low-traffic areas), it will not work for a daily commute to work as your risk of having an accident is much higher. However, if you are short of cash and have a very expensive car to run, it may well be the only option you have!
• Comprehensive cover: as its name suggests, this covers for both your vehicle and third-party damage. It typically covers you for any loss or damage caused to the vehicle due to accident and natural hazards including lightning as well as man-made hazards such as theft, riots, and strikes. Comprehensive cover does cost much more than third-party cover for obvious reasons - it covers more risks.
• Breakdown cover: this is not required by the Road Traffic Act but is a useful type of insurance to have if your car is at risk of breaking down often. Typically such cover will save you loads on towing your car and getting your car repaired at home or by the roadside if possible.

Getting the Best Product

There are many companies that offer insurance products and they will all tell you they provide the best cover ever! However, they will typically offer the same sort of product with minor differences and the only main differences will be the prices and the customer service. You can either go directly to their shop or ask an insurance broker - the latter will look for the best product based on your profile (car value and history). This option could save you a few hundreds if not thousands of rupees. Some tips to help you save:

• Shop around - get at least three quotes (call them up or apply online - many companies do online applications nowadays) from different companies.
• Haggle! - challenge your insurance broker or company with the competition's prices. If they are cheaper, you don't have to tell them they are, just haggle them down as they cannot refuse you a product if you come back to them later.
• Get the right product - make sure you tell the company all the details of your car (including modifications), and your driving history - if you lie about your previous accidents, it may invalidate your insurance!

  A partial list of Motor Insurance providers in Mauritius

  We hope the above tips will help you make sense of the insurance products available. Hereunder we've provided a list of companies that provide Motor Insurance. Note that we do not vouch for their products nor do we get paid to advertise for them here (we will let you know if we ever do!) as we aim to provide free and fair advice.
  • • Mauritian Union
    • Mauritian Eagle
    • SICOM