Contact your broker to report the claim.
A claim form must be completed and submitted with a copy of the driver's license and Identity Document of the driver at the time of the loss.
Remember: Do not admit liability under any circumstances. The underwriter will deal with all the liability claims on your behalf, provided that the terms of your policy have been met in all respects. If you receive any claim from a third party, please pass that correspondence on to us immediately, so that we may deal with the claim in accordance with your policy contract.
THEFT / HIJACK CLAIMS
What are the procedures in the event of a Theft / Hijack Claim?
A claim form must be completed, giving special attention to the following (thereby helping us to settle your claim without delays):
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Vehicle details eg. Opel Corsa 1.6 GSE 1998 |
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A list of any extras fitted to the vehicle |
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A list of any special markings or identification marks and the correct SAPS reference number to assist us with the possible recovery of your vehicle. |
The following will be required in order to settle your claim:
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A letter from the bank or relevant institution if the vehicle is the subject of a Hire Purchase agreement |
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The Registration Paper of the vehicle (not the licence renewal document) |
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The certificate of proof of purchase and installation of any fitted tracking device or approved immobiliser |
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All the keys, normal and spare keys including service keys, immobiliser and electronic keys |
ROAD ACCIDENT FUND
Accidents where persons may be injured must be reported by the owner / driver directly to the RAF (Road Accident Fund) at Private Bag X28, Roggebaai, 8012, on a prescribed form within 14 days.
BALANCE OF THIRD PARTY
Initially The Motor Vehicle Insurance Act (Act no. 29 of 1942) required each and every motor vehicle used on a public road to carry a Third party Insurance. A token providing detail of the Insurer was displayed on the windscreen of the vehicle. The Multilateral Motor Vehicle Accident Fund of 1989 replaced the entire system by introducing a tax levied on each liter of fuel sold to fund the cover as provided by the Act. The cover provided by the fund extends to death or bodily injury to third parties, but does not always protect you fully.
This type of cover provides protection in the event that you incur legal liability as a result of you or your driver having caused loss or damage to a third party’s property. The cover also protects you in the event that you cause injury to a third party in an instance where you do not enjoy protection from the provisions of the Road Accident Fund Act of 1966.
Under this type of cover you are not indemnified in respect of any damage or loss to your own vehicle.
BALANCE OF THIRD PARTY, FIRE AND THEFT
This cover provides a limited extent of cover to the insured vehicle in that you will be indemnified for the perils of fire and theft as regards to your own vehicle. If you are liable for damages to a third party’s vehicle, or to his person we will indemnify the other party (see Balance of Third Party).
In respect of other damage occasioned to your vehicle, however, you will not be indemnified.
BETTERMENT DEFINITION
If the settlement of the Claim results in the insured being in a better financial position than he was before the loss occurred, the extent of the improvement to his position is known as ‘betterment’ and he would be expected to contribute towards the Claims settlement.
Example
Your hi-fi set is destroyed in a fire. A replacement similar to the hi-fi you had would be R5 000. You prefer to upgrade the hi-fi to a set with value of R7 000. The R2 000 difference constitutes betterment and would be your own account.
CLAIM FREE GROUP DEFINITION
A system of rating a policy, whereby the premium is decreased by a given percentage if the insured does not institute a claim in terms of the policy during a specific period of insurance. Alternatively, the premium increases if claims are intimated.
EXCESS / DEDUCTIBLES / FIRST AMOUNT PAYABLE
Definition
An excess is an amount of each and every claim which is not covered by the policy. It is used as an underwriting tool in order to minimise the number of small administratively expensive claims, or to reduce a loss ratio, and to impose a duty of care on the insured. Excess may be Voluntary and / or Compulsory.
Example 1
You have lost your watch to the value of R800 and the excess applicable is R200. The claim will be settled for the amount of R600.
Example 2
A burst pipe results in damage of R375 to a ceiling and the excess applicable is R500. The full R375 would be for your own account because it falls within the excess of R500.
INDEMNITY
The principle of indemnity is the basis of most short-term insurance contracts. This principle states that after a loss has occurred, the insured shall as far as possible be placed in exactly the same financial position as he was before the loss occurred, subject to adequacy of sum insured and all policy conditions and requirements being fulfilled.
INSURABLE INTEREST
Definition
To have an insurable interest in an item a person must stand to suffer direct, measurable financial loss if the item were lost, damaged or destroyed. The person must stand to benefit from the continued, unharmed existence of the item, or be prejudiced by its damage or loss or liability which may rise.
Example
Your TV set to the value of R2 000 has been stolen from your home. As the owner of the TV you have suffered a measurable loss of R2 000 because you have a financial (insurable) interest in the TV set.
LIMIT OF INDEMNITY
This is the maximum amount of indemnity provided by a policy. The limit of indemnity is determined by the sum insured and constitutes the insurer’s maximum liability in respect of any one event or series of events. The limit of indemnity is the amount upon which the premium is usually calculated.
NO CLAIM BONUS
Definition
Sometimes incorrectly known as a Claim Free Group (CFG), the No Claims Bonus (NCB) is a discount allowed off comprehensive motor premiums, and is used to 'reward' the insured for a period of claims free driving. The difference between a CFG and a NCB is in the system of allowing the discount. Whilst the CFG is expressed as a separate section of the tables, a NCB is usually a percentage discount allowed and is often used in Commercial Vehicle rating calculations.
UNDERINSURANCE
Definition
This is the situation where the insured has not arranged adequate insurance cover for the financial value of the property insured. In the event of a claim the principle of 'average' would then be applied.
Average is an insurance principle which has resulted in many discontented clients in the insurance industry than any other, yet it is a simple and easy one to understand. If an item or property is underinsured, the insured must bear a ratable proportion of each and every loss.
Average is applied for three main reasons:
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To prevent underinsurance |
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To obtain a full premium for the risk insurer is carrying |
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To ensure that each party bears a fair share of each loss. |
The formula determining average is as follows:
(Sum insured / Value at Risk) x Amount of Loss
Example
Contents Claim: A machine is insured for R10 000. The actual replacement value of the item is R20 000. If the machine was damaged by fire resulting in repairs to the value of R5 000 in repairs, the claims settlement would be calculated as follows:
(R10 000 / R20 000) x R5 000 Amount payable : R2 500
Building Claim: A building is insured for R200 000. The actual reinstatement value of the building is R300 000. If the building was damaged by a hail storm to the value of R60 000 in repairs, the claims settlement would be calculated as follows:
(R200 000 / R300 000) x R60 000 Amount payable : R40 000
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