Frequently asked questions
What is a No Claim Bonus (NCB)?
This is a discount of premium which is earned for not claiming from the insurer over a period of time. These bonuses are affected by claims.
What is Claim Free Group (CFG)?
This is the same as the above No Claim Bonus.
Why do I need to Insure?
One needs to insure against losses or events beyond your control so that the insurer can put you back into the position that you were in prior to the loss or event.
What is an Excess?
An excess is the first amount payable, which is your responsibility, in the event of the submission of a claim. It is the uninsured portion of your loss and is payable regardless of whether or not it was your fault. It serves to deter clients from submitting minor claims and/or fraudulent claims, thus keeping premiums down. It is important to note that the excess covers the first portion of the loss and that it is not a pro rata sum. The practical implication of this fixed amount is that if your total claim is less than the excess amount – you will have to pay for the excess first, meaning that you pay for the entire claim amount.
In certain circumstances the excess may be recoverable from the third party (other party at fault who caused the loss/accident) and insurers will pursue where possible, to recover your excess and their claim costs. Excess structures vary depending on types of policies, it is therefore advisable that you check your policy or ask us, your brokers.
What is a Waiver of Excess?
Waiver of excess (also known as Excess Buster) means that the Basic Excess payment provided in the Policy Schedule will be waived in the case of a claim, but any other additional excess payment specified in the Excess Schedule will still remain applicable. Waiver of Buster will only be applicable to the insured, and the insured must be 28 years or older and have a license issued for longer than 2 years. This the guidelines for Hollard and Renasa on our facilities and can vary from other player to player.
Who is the Insured?
The Insured is the person named in the Policy Schedule and includes his/her spouse as well as family normally living with him/her and financially dependent on him/her.
What is "Average" and when is it applicable?
Average means that you will be responsible for a proportional share of the loss or damage, as a consequence of not being adequately insured. Average is only applicable to claims under the Building and Contents sections of the Policy, as claim settlements are based on replacement values, which means “new for old”. If according to the calculations, the amount needed to replace all your private residential structures with similar or new structures at the time of any loss or damage, or the amount needed to replace all your household contents with similar or new property, is more than the insured amount, the insurance company will not pay you for the full amount.
Example:- If you are insured for R500 000, but the replacement value of the property is R1 000 000 you are only insured for half of the replacement value and you must cover the other half. If you suffer a loss in the amount of R100 000, they will only pay half of this amount, which is R50 000.
What is "Insurable Interest"?
You may only insure your own personal items under the policy and not items belonging to your friends or family (not direct family like wife, kids, etc), unless you have a financial interest in such item. The latter must be disclosed to us and we must get the relevant insurer to agree thereto in writing. For example, if you pay for a vehicle that is registered in someone else’s name, it must be disclosed to us in order for us to get permission from the insurer whether they are prepared to accept the risk or not.
Examples of persons or bodies with Insurable Interest:
• Mortgagees (Banks providing a bond on a property)
• Financial Institutions (providing loans/financing of machines, vehicles etc)
What is a Warranty?
This is a condition in a policy of insurance which must be complied with literally.
What is SASRIA cover?
SASRIA (South African Special Risks Association) is the insurer of damage caused by Riot whether politically motivated or not, Strikes, Civil disobedience, Rebellion, Labour Disturbances. All these are excluded by virtually all policies of insurance issued in South Africa and are therefore insurable by SASRIA in the form of a coupon policy.
What should I do if I am in a motor accident and know/think that I am guilty?
Never, in any circumstances, admit guilt, or even apologise if you think you are guilty. The reason for this is that you may prejudice the insurer’s rights, in which event they will be in a position to reject your claim. You may never make any admission, statement, offer, promise or payment without our written consent. The insurer’s Legal Department will establish whether there is liability or not.
What can happen to me if I submit a fraudulent claim?
Any form of fraud is viewed in a very serious light and criminal action will be instituted against you. Insurers employ highly specialised investigators in this field and any such conduct will be uncovered. Fraud is rife in the Insurance Industry, which leads to increased premiums. If you claim for an item you did not own, or that was not stolen or damaged, or request a panel beater to “work” your excess into a quotation, it constitutes fraud. If any part of a claim is fraudulent, the whole claim is deemed to be fraudulent. The claim will be repudiated and legal action will be taken against you.
Will my claim be paid if I am involved in an accident under the influence of alcohol?
No, your claim will not be paid. The insurer will not accept any liability arising whilst the driver of the vehicle is under the influence of drugs or intoxicating liquor, or whilst his blood alcohol level exceeds the legal limit.
What are some of the reasons for the repudiation of a claim?
What is meant by recovery or subrogation?
This is a service the insurer offer whereby they endeavour to claim back the costs of the damages that were sustained to your vehicle, where another party was at fault. Their full outlay, including your excess, will form part of the recovery.
What about my Excess, in the event of a claim?
How long can a recovery process take?
A recovery can take anything from three months to three years. There is no definite or specific time frame that can be guaranteed. Factors such as the accuracy of the information provided regarding the other party and the co-operation or lack thereof from the other party or his/her Insurance Company, will ultimately determine the timeframe of a recovery process.
What is the difference between a recovery and a third party claim?
A “Recovery” is when you were not at fault for an accident and they act on your behalf to claim the damages from the Third Party.
A “Third Party Claim” is when you were at fault and the Third Party is claiming against you for damages.
If my recovery is abandoned, do I have any other options to claim my Excess?
You will be notified if a recovery is abandoned and the reasons therefore. You will then have the option to issue Summons against the Third Party in the Small Claims Court for the excess amount only providing it is less than R8,000. They will make all the documents available to you for this purpose.