By: Kyle Dutton, Project Manager, Southern African Movable Asset Register (SAMAR) www.samar.co.za
How to mark, track and trace those moveable assets currently excluded from eNaTIS
As stated in the National Road Traffic Act of 1996 (Act 93 of 1996), all moveable assets with VIN numbers must be loaded and registered on the Electronic 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 of the National Road Traffic Act of 1996 (Act 93 of 1996). By definition the Regulation 5 excluded certain moveable assets that are classified as forms of yellow metal, agricultural equipment and pleasure crafts.
Thus, in the event of a purchaser acquiring new equipment to be used for mining or agriculture under financing and/or wanting to insure the asset with an insurer, it would not be possible to use a “title” on an eNaTIS Registration Document, as would normally be done to confirm the bank or insurer’s interest in the asset.
However, due to the fact that the value of these non-movable assets is normally so substantially high, the ability to correctly identify the property is absolutely crucial – for both financiers and insurers. In fact, the identification of these assets in instances where the purchaser is still subject to the financing, and/or in instances of loss due to theft, is fundamental, and by not allowing the asset to be registered on a database such as eNaTIS, is proving problematic for both the financier and insurer.
Unfortunately, the headache doesn’t stop there. There is also the risk of double-discounting, whereby the same asset could be financed fraudulently twice with different finance providers. In fact, millions of Rands are lost every year due to either dual or multiple financing on the same asset, as well as the inability to claim ownership after an insurance claims pay-out, or the inability to recover items in the second-hand market.
Marking of assets
However, there are options available today to correctly mark any assets other than roadworthy and registered vehicles as done on eNaTIS, in order to identify and confirm ownership. The monitoring and tracking of property is only possible when each item is individually identifiable and recorded in a traceable database, for example, making use of self-adhesive labels which will not wear out or fall off.
What is greatly needed, and what SAMAR provides, is a system that can create the most recent reliable record of an asset by updating those records in real-time as changes are made by various system participants. This system would allow banks and insurance companies to effectively manage and control the financing and insurance of all assets throughout the lifecycle. This would greatly reduce fraud, double discounting, or incorrect depiction of value for insurance purposes.
Further, the use of this system by the insurance industry to load their interest against the asset under finance will reduce risk for the banks and the associated costs.
The title and ownership of movable assets can be controlled in a simple, cost effective solution, which is far less costly than registration on eNaTIS, for all to access and monitor trade and ownership in real-time to greatly reduce fraud and theft.