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Insurance: Your hail season survival guide



Summertime is commonly associated with hail season in the northern parts of South Africa, and short-term insurer, Santam confirmed afternoon they received the first storm and hail damage reports from Mpumalanga. The South African Weather Service issued a warning earlier this week that Friday would bring thunderstorms for Mpumalanga, Gauteng and Free State with possible strong winds and large amounts of small hail. Hail stones vary vastly in diameter – from the size of marbles to the size of golf balls causing millions of Rands worth of damage each year.

Hail is an extremely destructive natural weather pattern. Hailstones can measure up to 7 cm in diameter, so it is easy to see why so much irreparable damage is done to vehicles and property. Windscreens are shattered, vehicles dented, roofs damaged and house windows broken.

The cost to repair and replace vehicles varies according to the severity of the storm and whether the damage could be repaired paintless or not. Not only are the costs crippling, but the repair process can take months, depending on the availability of car parts and the capacity of approved motor body repairers.

Statistics show an average of six to eight hail days each year in parts of Gauteng and Lesotho, the eastern Free State, KwaZulu-Natal and Mpumalanga. So, how can South Africans living in these parts of the country prepare for the inevitable fallouts of these storms?

Here are some tips to help policyholders be adequately prepared for hailstorms:

If you are on the road or vehicle is parked:



 

·       Drive slowly – slower driving minimises the damage of hail and combats slippery roads.

·       Locate a safe, covered area immediately or pull over under an overpass, provided it is safe to do so.

·       Undercover parking at malls and petrol stations are good temporary solutions to protecting your car during a hailstorm.

·       Stay inside the vehicle. Large hail stones pose genuine injury threat.

·       Keep fleecy blankets in your boot so you can cover your car to minimise the impact of hail.

·       Take careful note of the extent of the damage to your car, look for damage to all glass items including side mirrors, taillights and head lights. Taking pictures may be useful when it comes to claims time.

·       If you are affected by hail, immediately report the incident to your insurer.

 

 


When you are at home:




 

·       Keep your gutters clean. It is important to clear gutters of leaves, twigs and any other debris regularly. Hail takes a while to melt and an overflowing gutter could lead to a leaking roof and further damage. Hail buildup is also heavy so make sure that the guttering is sound and in good order.

·       Trimming trees close to your house helps get rid of branches that can cause severe damage during a storm

·       Keep your blinds down. Make sure you close all curtains, blinds or shutters to prevent broken window glass and hailstones from entering your home and injuring you or your family.

·       Park your car in the garage or in a sheltered undercover area.

·       Ensure that you are adequately covered against hail damage in your insurance policy so that you have cover when you need it.

Now is not the time to compromise on your insurance cover – it is very important to know exactly what you are covered for and for what amount. Consumers should make sure their policies are up to date and take a note of the insurer’s available emergency services. Choose an insurer that assists you in protecting your assets in severe weather situations by sending out weather alerts.

Looking for the right Household and car cover?
Simply visit our website
www.esbrokers.co.za, leave your details and we will contact you.

 


Article courtesy of Santam, written by Marius Neethling


Six ways to stay safe when thunderstorms hit





Know when thunderstorms are on the way.
Staying up to date with the latest weather forecast has never been easier: simply turn on your weather app notifications before planning a trip or a commute. Or, if you’re old school, stay tuned to the weather reports on the radio or TV. Then try and stay off the roads, if at all possible. Driving in a storm is risky, and no fun.

Park your car under cover

Insurers see hundreds of claims for hail damage every year. The simplest way to avoid hail damage is to park your car in your garage, or under a carport. If you don’t have covered parking, you can use a car cover, or even a blanket, to minimise damage and protect your car’s most exposed surfaces, like the windscreen and bonnet.

Find a safe place if you’re caught in a storm

If a severe thunderstorm starts when you’re on the road, stay calm, and use your GPS to get you to the nearest sheltered spot as quickly as possible, like a petrol station or an underground parking area in a shopping centre.
A tree doesn’t count as a safe place, as falling branches and debris can damage your car. And stopping under a bridge on the highway in the middle of a storm is neither safe nor advisable.

Make sure your wipers are in top condition

In case you’re caught in a storm and there’s nowhere to go, your best defence is proactive preparation. Get your wipers checked before rainy season starts, and use water repellent for your windscreen, to make sure your visibility is as clear as possible while you’re on the road.

Check your tyres are storm-worthy

In rainy weather, water creates a tiny barrier between the road and your tyres, which means you can lose traction and hydroplane. Thousands of accidents happen each year because of wet roads, and your preparation starts with your tyres: make sure they have at least 1mm tread depth, and that they’re inflated to the correct pressure, especially if your car hasn’t been driven for a while.

Don’t skimp on your insurance

In spite of our best efforts, stuff happens. Make sure that you have comprehensive insurance for your pride and joy, which can help cover expenses related to thunderstorm damages, such as flash floods and bumper bashes. Many insurers, also have specific ‘scratch and dent’ cover at a super-low excess.

For information and advice on insurance related matters please leave your details on our website www.esbrokers.co.za.

 

Article source – Kathorus Mail, written by Wynand Van Vuuren.

Why do women pay less for car insurance?



There are many factors that influence how your car insurance premium is calculated. But did you know that you will likely pay lower car insurance premiums if you are female?

We got in touch with an insurance expert to find out why this is the case, as well as look at other factors that play a role in calculating your car insurance premiums.

 

It all comes down to statistics

According to Christelle Colman, insurance expert at Old Mutual, around the world, it’s a proven actuarial finding that women are statistically lower insurance risks than men. 

Women take fewer risks, are more careful in their decision-making, hardly ever exceed the speed limit, and shy away from any form of road rage. Statistics show that women have fewer accidents, and the accidents they do have are less severe.

Considering that the cost of repairs is one of the biggest driving factors when it comes to pricing motor insurance, it is easy to understand why women are charged less. Statistically, the damages incurred by women simply cost less to repair. 

It’s worth stressing that this phenomenon is not limited to South Africa, and the trend is well established and accepted as fact around the world.

Colman points out that race is never used as a rating factor in motor insurance in South Africa.

 

 

Which other factors are considered? 

Besides gender there are a host of factors considered when motor insurance premiums are calculated. For example, insurers look at credit scores, place of residence, occupation, and claims history to determine your insurance premium. 

However, it may surprise you that the colour of your vehicle also has an impact on your insurance premiums. This is because, statistically speaking, certain colour cars are more at risk than others.

Whilst colour of vehicle is a well-known rating factor, the influence of the vehicle colour is often rather small. Insurers pay more attention to knowing if you have had any previous accidents, the number of kilometres you drive annually, and where you live.

Your age will also have an impact on your insurance premium. If you’re under the age of 25, you will likely have higher premiums because you haven’t been driving for very long. On the other hand, if you’re a pensioner, you may have access to a reduced premium.

Most insurers offer a significant discount on motor insurance premiums, or reduced or even zero excess if you are over the age of 55.

If you use your car for business purposes it’s recommended that you disclose this to your insurer. You may end up paying quite a bit more, or the insurers will ask you to insure the car on a business policy. 

However, if the usage of the vehicle is not disclosed, you run the serious risk of having your claim rejected in the event of an accident during working hours.

 

For a quotation on your vehicle, to see whether you qualify for any further discount, you can phone our office on 031-5021922 or leave your details on our website www.esbrokers.co.za

 

 

 

Article featured in “Just Money”, written by Christelle Colman – Old Mutual


When cash-strapped adult kids move back home



Across the world, tough economic realities are forcing young adults to move back home. In the US, 52% of 18 to 29 year old’s were living with their parents in July, compared to 47% in February, according to a Pew Research Center survey. 

In South Africa, about 42% of 18 to 34 year old’s were still living at home in 2018, according to our latest research and we anticipate that situation will be exacerbated by the impacts of the Covid pandemic.

And Millennials’ finances seem to be hardest hit, fuelling expectations that many of them will return home to live with their parents, as we’ve seen happening abroad.

84% of South African Millennials indicated their household incomes have been negatively impacted by the pandemic, compared to the global average of 76%, according to a recent global report by TransUnion.  

With the shrinking job market as well as continued salary cuts, young adults’ ability  to maintain their independence  has been severely impacted by the pandemic.

If you’ve said goodbye to your kids and are content in your empty nest, it will be quite an adjustment for all if they do come knocking. But with proper planning and some ‘rules’, it can be a win-win situation for everyone. 

Here are some tips to help you navigate this new-normal:

1.    Make sure everyone contributes their share

If your children move back home and are still working, chat to them about contributing to the household’s expenses. You can ask them either to pay ‘rent’ or contribute towards covering the increased expenses. Where possible, agree on a household budget. Also revisit your own budget and see if you are able to make any adjustments. Openly communicate with your children if you are unable to cater to some of their needs.

2.    Enjoy their company and tech help

Living with your adult children again can work brilliantly if it’s a symbiotic relationship, and you do things to help each other. For example, they can help you with maintaining the house, keep you company on lonely days and even assist with your tech needs, that’s if you are a little bit technologically challenged.

3.    Ensure you have a holistic financial plan
Make sure you have a financial plan in place that prioritises all your financial needs, including your long-term goals like saving for retirement. Your children moving back shouldn’t necessarily put a dent in your future financial wellbeing, depending on their and your circumstances.

Your financial plan should make provision for when you are sick and unable to work, as well as the possibility of retrenchment. Also consider leaving a legacy for your loved ones to help them financially when you are no longer around. Still have debt? Prioritise paying it off. A good financial adviser should be able to help you in drawing up a plan that looks at your risk and retirement needs, as well as a good debt busting plan.

4.    Draw up a will and prioritise estate planning
While nobody really wants to dwell on their passing one day, it’s important to do proper estate planning and have a will in place for when the inevitable happens. This will ensure that your assets will be distributed according to your wishes and that the people you love will benefit. 

It is important to keep a file with your will, bank accounts, policies, as well as your passwords in a very safe place that only someone you trust will have access to when you die. Remember that cryptocurrencies can only be accessed via passcodes. If the password goes missing, those investments could be permanently lost, so guard them very, very carefully.

 

Article featured in Cover magazine written by Arobo Ramookho, strategic retail marketing manager for Old Mutual.

 

Cybercrime has been earmarked to become one of the biggest insurance risks globally.




Due to a recent hack of the credit bureau data ‘’Experian’’, where 24 Million people’s information is now exposed. 

We have seen a drastic increase in claims during Covid 19 lockdown period.  Fraudsters have more time on hand to try and scam you in many different ways.



We believe that this product "FUNDS PROTECT" is no longer a ‘’Nice to have’’ but a ‘’Need to have’’

What it covers:

 

Funds Protect covers your BUSINESS against a  

1             A Loss of Funds

2             From an account in the name of the Business

3             As a result of a Funds Transfer

4             Whether authorised or unauthorised

5             Due to the fraudulent conduct of a third party

6             Which is irrecoverable from the bank or third party

 

Funds Protect covers YOU against a  

1             A Loss of Funds

2             From an account in YOUR name

3             As a result of a Funds Transfer

4             Whether authorised or unauthorised

5             Due to the fraudulent conduct of a third party

6             Which is irrecoverable from the bank or third party

 

  

Scenarios covered (Not an exhaustive list)

 

·  E-mail interception

·  Transactions due to stolen identity

·  EFT/Deposit scams

·  Hacking/Phishing/Vishing attacks

·  Demands for ransomware attacks, denial of service attacks

·  Sim Swap Fraud

·  EFT Fraud

·  Online Banking fraud

·  Accommodation booking scams

·  Bogus Property Rentals

·  Fraudulent Invoices

·  Eft Duping Event

·  Unauthorised transfer of funds event

·  Cyber Extortion Event

·  Classified Scams (Personal only)

 

Unique features: 

  • No excess payable
  • Affordable
  • No waiting period
  • 90 days to claim from date of transfer

 

Did you know?

 Did you know that +- 800 Million was lost due to fraud from South African bank accounts alone according to recent statistics obtained from the South African Banking Risk Information Centre (SABRIC).

 

  • Did you know that 82% of cases not reimbursed by the financial institution lands up on the ombudsman table in favour of the financial institution and not the client.  

 

What would you do if your hard-earned cash disappeared from your bank account?


Should you be interested please contact us through our website www.esbrokers.co.za


                                                                                                                                          

 


Insurance: Finding value is easier than you think



While short-term insurance may be a grudge purchase for some, there could be hidden value in your personal or commercial policy. At a time when every rand counts, it is important to be aware of the more common Value Added Products (VAPs), that you may already have included in your cover, or that you could easily add, cost-effectively. Anything that helps make life easier, or less expensive, adds value to the journey. Here are some VAPs to keep in mind.

Vehicle VAPs

While many of us are quick to opt for a higher excess in exchange for lower monthly premiums, you should be sure about the exact costs you will be liable for, if you need to claim. Keep in mind that some insurers calculate the excess as a percentage of the claim amount. If the claim value is R300 000 as an example, an excess of 5% of the claim would mean R15 000 will need to be paid upfront.

You can put VAPs in place that reimburse your basic, theft and hijacking excess in the event of a claim, provided the vehicle is comprehensively covered. Any additional excesses will still apply, and the cover will follow the frequency you’ve selected for your policy to be in force (e.g. monthly or per annum).

VAPs for tyres could provide cover for loss or damage from hard breaks, bursts and for repair or replacement of a tyre, including valves and balancing, depending on your cover. With windscreen replacement costs increasing and therefore the excess applicable to a claim, there is a VAP that allows you to buy back your windscreen excess too. This type of cover typically offers maximum liability and two claims per vehicle, per year.


Just in case

We take the convenience of having a car for granted, but an accident can mean your car is kept at the repair shop for weeks. While you might consider asking friends for lifts, using ride apps like Uber or even using public transport, making alternative arrangements can become cumbersome, especially if you have a family to transport. Even if you have two cars in your family, having car hire can be beneficial, as the second car might not be available when you need it.

If you have an imported car, parts can take a while to arrive, so standard car hire may need an extension, depending on what car you drive.


Going the extra mile for safety

Our roads aren’t always hazard free, and bumps and scratches can be common irritations that need not cost as much as you think to repair. Maintenance VAPs are available for restoring paintwork damage due to general wear and tear. Emergency assistance such as for roadside incidents like a breakdown might also be included in your policy, along with ‘safely-home’ options that you can book in advance through your insurer, to avoid driving after drinking. You could have up to six trips included in your policy.

Household assistance and maintenance may also be included, which would be useful if you need a locksmith, or your geyser bursts, or you have other home emergencies.


Cover against crime and injury can be included too

Trauma cover within terms and conditions, medical benefits and legal assistance can be included in your policy as well, which may extend to covering any fraudulent issues against your personal identity. This could prove useful in the current climate where cybercrime risks and financial fraud are rife.

You can also opt for a premium waiver VAP, which provides cover for death, permanent disability, and retrenchment.

You might also consider how you would feel if your domestic employee became injured on the job (imagine a fall down the stairs, as an example). Specific domestic employee cover can be added too.


Are you properly covered?

Insurance can help us solve shortfalls, but sometimes opting for lower premiums means we forgo benefits that could mean much more in the long run. You should always be clear what risks you are opting into when agreeing to fund part of the costs yourself. Knowing about or adding on solutions to your policy, can make for a better experience. Knowledge is power, and preparation is never a waste. Be sure to add VAPs to the discussion list with your adviser to ensure your policy gives you the protection you need.


For any assistance with Value added Products and how they can benefit you, contact our office on 031-5021922 or visit our website www.esbrokers.co.za

 


Article source – IOL
Written by Bertus Visser is the Chief Executive of Distribution at PSG Insure


South Africa’s GDP could grow by 45.2% in third quarter – Reserve Bank



South Africa’s economy could expand by an annualized 45.2% in the third quarter, according to central bank forecasts.

The monetary policy committee used that estimate for the quarterly change in gross domestic product at its meeting Thursday, when it left the benchmark interest rate unchanged, the Pretoria-based Reserve Bank said in an emailed response to questions.

It will be the biggest quarterly increase in at least 30 years and follows a record annualized quarter-on-quarter contraction of 51% in the three months through June. The median estimate of 26 economists in a Bloomberg survey is for an expansion of 35.3% in the third quarter.



GDP Growth

A nationwide lockdown that’s been in place for six months pushed Africa’s most-industrialized economy into its longest recession in 28 years. The restrictions were gradually eased from May 1, allowing the phased reopening of some businesses and sectors, and will move to the lowest alert level 1 next week, with international borders re-opening on Oct. 1.

While there is “a lot of uncertainty about the recovery” and progression of the coronavirus pandemic, the central bank’s latest forecasts “incorporated the right assumption” about the move to lockdown alert level 1, it said.


The inflation-targeting bank halted its easing cycle even as it announced lower full-year GDP and price-growth forecasts. The impact of the 300 basis points of rate cuts in 2020 has yet to filter through to the economy, Governor Lesetja Kganyago said. That’s because it happened in quick succession and the transmission was slow because of lockdown restrictions that halted most economic activity.

The central bank sees the economy contracting by 8.2% this year. The median estimate in a Bloomberg survey is for an 8.5% decline.

 


Article by Bloomberg


Avoiding Insurance Fraud



Digital detection spells jail time for insurance scammers

The Insurance Crime Bureau estimates that in 2019 up to 20% of the R35 billion paid out on short term insurance claims could have been fraudulent. If correct this means that in 2019 alone the South African short-term insurance industry lost almost R7 billion to fraud.

The unprecedented financial pressure that consumers are under in 2020, “has certainly increased the frequency and quantum of the fraudulent insurance claims that we’ve picked up to date,” says Christelle Colman, insurance Expert at Old Mutual Insure. In response, the short-term industry is currently on, “high alert for fraud as Covid-19 financial pressures bite,” she adds.

Insurance fraud harms others
Increased financial pressure aside, Colman reports that, many South Africans don’t actually consider gilding the lily on their insurance claims to be a crime. “Many people consider insurance fraud a relatively benign practice that doesn’t harm anyone,” says Colman. Nothing could be further from the truth. Insurance works on the principle that the many contribute to making good the losses of the few. Money lost to the pot by insurance fraud, says Colman, “compromises the ability of insurers to indemnify – or make good – the claims of those who have loyally paid their premiums for years and genuinely suffered loss.”
Where fraud is widespread, insurers will also almost certainly increase premiums and excesses in an attempt to rectify loss-making portfolios.



False Claims
Insurance fraud can be subtle and insidious. It’s not always about a false or fictious claim. Often people find themselves committing insurance fraud almost unwittingly. For example, people often lie about the detail of the claim, adding a few items that weren’t lost - or increasing the quantum of claims by exaggerating the value of articles lost. Another commonplace behavior is to increase the value of the claim to compensate for the excess. “While many consumers believe this is allowed, it is in fact blatant fraud,” explains Colman. This is why it is important to keep proof of ownership of items as well as the values that you paid for them. It is equally important to keep your insurer up to date and informed when values or other details of cover change.

Accidental Fraud
A common area where people inadvertently fall into committing insurance fraud is when something is stolen or lost, claimed for and paid out – and then the wedding ring is found or the stolen car retrieved a few months later. “Do not just hang on to the returned car or ring,” warns Colman. Since the policy holder had been indemnified – that is, paid out – the lost ring or car now belongs to the insurer. Policy holders who get indemnified goods back should immediately alert their insurer and hand over the goods or they will be committing fraud. The insurer will, in all likelihood, sell the goods to offset the settlement.

If the item is of sentimental value – like your original wedding ring – the insurer will, most likely, give you the opportunity to return the payout that you received for the original loss of the ring. This will, “allow you to keep your original ring while also preventing you from committing fraud,” says Colman.



Insurers see more than you think
The point is that insurers have systems and known behaviours - or ‘tells’ - that pick-up inconsistencies, indicating when insurance fraud is likely in play. Right from the start, for example, says Colman, “the initial call is recorded.” Not only is the level of nervousness of the caller often a tell, but when the detail of what they say on the first call doesn’t stack up with what is finally submitted in the claim, “we know to dig a little deeper,” she adds.

In a digital age informed by data, insurers are also able to cross-check all the information that they have on individuals with, for example, their social media profiles – and even their mobile phone and WhatsApp messages when access to these is permitted as part of an official investigation. This builds a very precise picture of where people were, what they were doing, who they were talking with and what they were saying. “If this throws up inconsistencies with the details of their claim and other statements, then we’re on to something,” says Colman.

It doesn’t’ even need to be that sophisticated. Motor vehicle accident or loss claims between 11 pm and 4 am, for example, are always scrutinized as this is when, “people are socializing, might be drinking and are driving in the dark,” explains Colman.




Insurance Fraud Syndicates
While individual fraud is fairly easy to detect, in recent years insurers have had to deal with professional insurance fraud syndicates. Syndicates target insurers with well-coordinated and executed fraud strategies. For example, media reports have recently highlighted a crime syndicate targeting luxury car owners. Typically, the syndicate calls vehicle owners, pretending to be the vehicles’ manufacturers.

The well-rehearsed caller then arranges to send a tow truck to pick up the vehicle to repair a manufacturing fault that they had ‘just discovered in all their vehicles’. Owners who hand over their vehicles in good faith never see them again. Most of these cases involve, “someone inside one of these companies able to provide the detail that makes claims look real so as to make criminal or fraudulent behaviour look genuine,” says Colman.

Insurance Crime Bureau
In addition to insurer’s internal forensic and investigative systems, the Insurance Crime Bureau (ICB) is a voluntary organisation that insurers provide with data. The ICB is a powerhouse of information on individuals, organisations and practices associated with or involved in fraud. The ICB also provides a platform for the public to safely and anonymously report fraudulent activities or suspected insurance crimes via a toll-free insurance fraud line. While the main focus of the ICB is organised fraud and crime, the bureau also investigates individual repeat offenders and fraudsters targeting insurance companies.

Their aim is not to replace the internal fraud investigation units of the insurance companies, but to understand syndicated and general fraud committed across the industry affecting multiple companies. Either way, consumers should understand that, “insurers collaborate with each other through organisations such as the ICB to combat fraud in the industry on a holistic basis,” she adds.

Fraud is a crime
Whether sophisticated multi-million Rand crimes or smaller individual frauds involving people padding their claim or inadvertently increasing the value of claims, the point is there are systems in place to spot fraud. Fraud is also a crime. In addition to not being paid out, “insurers frequently institute criminal claims again policy holders. These regularly end in substantial fines or even jail terms,” warns Colman.
If policy holders believe they have a legitimate claim and their insurer is not being fair they should approach the insurance Ombudsman. This is an easy online process providing relatively speedy resolution. “The Ombud actively intervenes on behalf of customers in cases where customers have not been treated fairly by their insurer, “advises Colman.

Honesty the best policy
The best policy to avoid insurance fraud remains total – and continual – disclosure. Share as much information and detail as possible and inform insurers as conditions, contents, values or any other details change. Insurance, like all relationships, is built on trust. Trust is founded on clear and consistent communication and constant disclosure. “Honesty is also the best way to avoid insurance fraud,” concludes Colman.

 

Article written by Christelle Colman, Insurance Expert at Old Mutual Insure
Featured in FANews

 


Top 10 Most Expensive Construction Projects Ever in the World

The present development and progress in the world is the evolutionary result of human brain power and earthly sources. It won’t be inappropriate to say that only human brain power wouldn’t have been sufficient without earthly sources. Now a days money has come forward as the briefest and compact form of earthly sources. Expensive projects are being launched day by day to sail out in the sea of development. Money makes the mare go or we can say that money changes the world, sometimes literally. The human race of present era can build and move massive things, with an incredible speed. The present human has dug through mountains, made new islands, diverted rivers, and many other impossible things that were once considered impossible even in near past. This journey of development is not going to stop at any rate.

Man has worked out on many projects for the development. Different projects have been launched in different parts of the world. Here we are going to present the list of the ten most expensive construction projects that have ever been completed in the history of mankind. Maximum of these projects were not among the most expensive projects at their initial time, but at the time of their completion they had consumed so much resources that now they are among the most expensive projects.


10. The Channel Tunnel – $22.4 Billion

image source: independent.co.uk


In the list of the most expensive construction projects of the world, The Channel Tunnel comes on 10th number. This project is also named as the “Chunnel,” by French side of the project as this Channel Tunnel spans beneath the stretch of water between the Southern coast of England and the Northern coast of France. The 31 km long channel was started with a view to enhance commerce and trade between England and France. It cost fifteen French and British companies $22.4 billion to get it completed. And, the channel is operated by the financing group Eurotunnel. Though the initial estimated cost was less than the cost the project consumed. Some main reasons were Escalating demands for safety, security, and environmental measures.

Tunnel boring machines began excavating for the projects in 1988. And, in 1994, the tunnel became functional. It was tragic enough that ten workers died in the construction phase. The Channel Tunnel comprises of three parts: two rail tunnels that are 25 feet in diameter each, and one service tunnel 16 feet in diameter. Each span 31 miles underground.

There is a long tragic history of mishaps and misfortunes regarding this channel. There have been many fire incidents in the Channel Tunnel. These incidents caused not only severe injuries but took many lives as well.


9. The Big Dig – $23.1 Billion



image source: bostonglobe.com



Another US project stands 9th in the list of the most expensive construction projects of the world. This project with a name of BIG DIG has an estimated cost of$23.1 Billion.

According to the project, there is a plan of rerouting some major highways in the Boston area. The main artery of the road network in the area, Route I-93, was redirected to go directly beneath the middle of the city. It is regretful to note that many obstacles got in the way of the project, including some sunken ships which had to be anthropologically examined before they could be moved. The Big Dig ended over ten years behind schedule. And it cost millions of dollars more than it was expected to.

It is also not a good thing to know about the project that it was plagued with financial and administrative problems, including some major design flaws which the state had to pay nearly $400 million in restitution for. Tragically, one death occurred during construction, when a concrete slab fell onto a car from the ceiling of the Fort Point Channel Tunnel.


8. Kansai International Airport – $29 Billions


img source: arup.com

Japanese Kansai International Airport is 8th in the list of the most expensive construction projects of the world. The airport cost an estimated $29 billion to construct. The airport is constructed on an artificial island, which was constructed to resist the semi-frequent earthquakes and tidal waves of the region. The second reason for building it in the water was to avoid noise illnesses.

The idea behind its construction was that Kobe and Osaka were losing trade to Tokyo. In this condition plans for the airport were introduced in the 1960’s. Metal support columns and other structural pieces have had to be added to it over the years, in order to prevent it from sinking. A second terminal was added in 2012, and connected to Terminal 1 via a free shuttle. It is located off Japan, in the middle of Osaka Bay.


7. California High Speed Rail – $33 Billion


image source: washingtontimes.com


The seventh most expensive construction project of the world is California High Speed Rail. Its estimated cost is 33 Billion US Dollars. This project was started in 2015 and scheduled to be done with Phase 1 by 2029. The California High-Speed Rail project is already way over its original budget. The basic purpose of this project (one of the most expensive in the world, under Obama’s vision) was to connect some of the major US cities by high-speed rail.

According to the schedule, the initial segment will connect Merced to Bakersfield. Ultimately, it will link San Francisco and Los Angeles. The rails in this project will be able to achieve a speed up to 220 miles per hour interlinking different states of America.

6. Songdo International Business District – $40 Billions



 image source - picdn.net


Among the most expensive projects of the world Songdo International Business District stands 6th in the list. South Korea has launched this project near Incheon International Airport. Its estimated cost price is $40 billion. The project is being built on land reclaimed from the ocean off of Seoul, South Korea. It will be a “smart city” like no other, complete with automatic recycling plants ubiquitous WiFi, and many other technological innovations. Korea is the first country to present this model in the world.

Some models of landmarks from other cities will be built there, including one of Central Park. According to blue prints it will have a small island full of various birds, rabbits, and deer that roam around. Songdo IBD is being built to attract businesses and tourists. China is also in follow up of this project but still with vague blue prints.

 

5. Dubailand – $76 Billions



image source lookup.ae


Dubailand is the 5th project in the list of the most expensive projects of the world. Design aspects of Dubailand is based on Arabian Folklore, specifically the tale ALAF LAILA Wa LAILA (One Thousand and One Nights). The project with an estimated cost of $76 Billion was started enthusiastically but its construction was halted in 2008, because of a financial crisis in Dubai. It resumed in 2013. When it will get finished, it will be one of the largest and most expensive entertainment facilities in the world. A Disney theme park, IMAX theater, and many other attractions are in its plans.

The impetus behind the project was that some thought Dubai needed a major attraction that was geared towards families, to compete with other cities in the region for tourism. Dubai wanted to make its repute other than trade domain as well.


4. King Abdullah Economic City – $86 Billions


image source dubaichronicle.com

King Abdullah economic City project is one of the most expensive projects of the world. It stands 4th in the list. Still it is not finished. When finished, the King Abdullah Economic City will be have an estimated cost of $86 billion. Located a little over an hour away from Makkah, the project city is certain to become a grand new tourist attraction for Saudi Arabia. The city will include entertainment centers, high class hotels, many luxury villas, some significant universities, and a massive airport.

The King Abdullah economic City is mostly being built by international real estate group Emaar Properties. The group is well known for building the world’s tallest building, the Burj al Khalifa, in Dubai. Another company Ericsson will be working on the information and communication technology.


3. Kashagan Fields – $116 Billions



image source financialtribune.com


The 3rd most expensive construction project of the world is kashagan fields. $116 billion has been spent on fixing it. It is a multinational project. The companies involved in it are: Total, Shell, Exxon Mobil, China National Petroleum Corp, INPEX KazMunaiGas, and AgipKCO, with Shell responsible for the production phase. It is an oil extracting project launched in the Caspian Sea. The Kashagan Fields represent the largest oil discovery made in the last 40 years. It is expected to produce more than 90,000 barrels of oil per day after 2018. Some unexpected troubles caused the project to get a little bit late like leaks in its pipes. The other main difficulty to delay it was that the fields are under high pressure, which makes drilling into them very hazardous at large. Apart from all these obstacles the project is now operational.

 

2. The International Space Station – $150 Billions


image source: asc-csa.gc.ca


The multinational project; The International Space Station is second in the list of the most expensive construction projects. The modular orbiting research station known as the International Space Station cost approximately $150 billion to complete. The countries contributing in its construction are; The US, Spain, Russia, Canada, France, Japan, Belgium, Italy, Denmark, Germany, the Netherlands, Norway, Switzerland and Sweden.

Another wonder about the fate of the ISS is that it will be crashed into the ocean, in the year 2020. That will be after 26 years of service. The Space Shuttle and Russian rockets were the main apparatuses used for making the ISS. All the modules used in it were built on Earth, then they were assembled in space.


1. The US Interstate Highway System – $459 Billion


mg source: climate.gov



While we go to look for the most expensive construction project of the world. We find that it is The Us Interstate Highway System. This project costed America $459 billion. It is the most expensive project of the world in the known human history. The President Dwight D. Eisenhower initiated it with the idea that it would help mobilize infantry in an emergency. He proposed the project as being crucial for national defense. Its basic purpose was not transportation. The project was initiated in 1956. This most expensive project of the world involved creating new routes, and converting old routs to serve as “interstates or interlinkers among American states.” Nebraska was the first state to complete all of its internal parts for the Interstate Highway System in 1974. The project was given the final touch in 1992, the I-70 through Colorado.

This most expensive construction project has paid back to America many times than its cost price. The road web was very helpful while the hurricane Katrina was devastating everything.


For assistance with your next construction or insurance needs visit our website www.esbrokers.co.za

 

 

 Information supplied, Courtesy of Ejaz Khan, mathematician and Blogger


What could go wrong at the braai?



This month is likely to be among the most popular for braai's around the country. The improving weather also makes a meal cooked the old-fashioned way (over the fire) even more appealing.

The picturesque scene of smiling faces amidst the smoky smells of lunch is a wonderful thought, but it could all go wrong in a second. Imagine, for example, a gust of wind blows in and before long, the lawn is on fire. Perhaps an enthusiastic game in the garden means a ball collides with a sliding glass door, shattering it. Someone takes a stumble and accidently knocks the Weber into the pool, or the gas braai explodes. Indoor braais can present all sorts of possibilities too, if safety isn’t prioritised. 

These examples are all hypothetical and dramatic, but it’s often the scenarios you can’t imagine happening, that could. Call it Murphy’s Law, or luck of the draw, but at least there are ways to manage it.  

Having family or friends over also encourages us to relax and not worry so much. To put your feet up is certainly well deserved given the year we’re having but being lax about safety is not worth the risk. Make it a braai to remember by adding some important checks to the list (beyond what is on your shopping list).




What you’ve got is ready to go

Checking your braai before using it is essential. A thorough clean is recommended, and you’ll want to be sure the replacement cost of the braai is considered, to be included in your insurance policy. Some expensive braais might need to be specified, otherwise the correct cost should be factored into your contents cover.

An up to date insurance policy in general, is important because a claim will also mean the rest of your contents and home are up for scrutiny. All your contents (from your bed to your braai) must be considered for the true replacement costs, which helps to avoid any issues at claims stage.

Your home’s structure should be covered under your building insurance. A fire gone awry could destroy your home, or a section of it. Repairs will only be properly covered if the property is properly insured too. 

Be safe and sensible

When you are braaiing, be careful not to let oven gloves or aprons, food packaging or alcohol near the fire, or risk an unhappy accident spoiling your appetite. Don’t let kids run around near the fire or breakables; avoiding accidents is always better. If you are heading outside and your garden is full of dead plants, clearing them away before you begin the braai makes way for better safety. Keep a fire extinguisher nearby too.

When the fire is nearly out, double check it really has died down before walking away. Hot coals can still cause a hot mess if not handled with care.

Personal Liability cover is also important to have in place, which could help in the event of any medical emergencies.

If your insurance policy needs an upgrade, it can usually be done quite quickly. Don’t delay getting your plans in order, so that any braai plans will play out for the best too.


For assistance with your building and/or contents insurance please leave your details on our website www.esbrokers.co.za and we will call you.




Article courtesy of Bertus Visser, chief executive of Distribution at PSG Insure