Vehicles are less likely to be stolen because once it has been applied, the vehicle is fitted with a warning sign which acts as a visual deterrent to criminals.

AVASHNEE MOODLEY - The Citizen Newspaper Thursday 22 March 2012

The mandatory use of microdot technology in all cars registered from September 1 may result in a drastic reduction in vehicle insurance premiums.

This technology is aimed at positively identifying stolen cars and making recovery time quicker.

The microdot contains millions of dots, which are etched by laser with a customised number.

This code can only be read with a special scanner that utilises a strong UV magnifier.

Should your vehicle be stolen, any parts identified with the dots are then traced back to the owner.

According to Christelle Fourie, managing director of MUA Insurances Acceptances, it was necessary to implement such a system to fight vehicle theft and the sale of stolen parts.

"The recovery of stolen vehicles is a huge problem in South Africa, with statistics from Business Against Crime South Africa (Bacsa) revealing that an estimated 90 000 cars are stolen or hijacked every year in SA and around only 43% of these cars being recovered," she said.

Criminals are also less likely to steal motor vehicles that utilise microdot technology because once it has been applied, the vehicle is fitted with a warning sign which acts as a visual deterrent to would-be criminals.

"It is possible that vehicle owners who utilise microdot technology could benefit from reduced car insurance premiums in the future, as the risk of theft is reduced and the rate of recovery is significantly higher if the vehicle is stolen," said Fourie.

She added that even when vehicles are recovered, current identifiers such as vehicle identification numbers, engine numbers and licence numbers may have been removed making it almost impossible to return the car to the original owner.

"As a result, cars to the value of R1 billion are destroyed annually by the South African Police Service," she added.