People sometimes have the perception that insurance claims are declined for ‘no reason’. However, an insurance policy is a contract. The insurer agrees to cover you according to how much risk they think they take on in doing so and set your premium accordingly. When the provisions aren’t met, the contract has effectively been broken and the insurer is exposed to more risk than ‘what your premium covers’ and ‘what was agreed to’. Beware: In the fine print there might be conditions that could disqualify your claim if not met. The insurance companies are completely within their rights not to cover you – because the contract is not valid anymore. The best course of action is to take care to understand the wording of your policy and to take the stipulations seriously. Story based on actual events, names have been changed to protect identity Rob had his car stolen at a shopping centre. He then contacted us and we registered the claim. The Insurance provider came back and requested the Car tracker logbook. Rob then informed us that his car tracker was cancelled as his policy lapsed due to non-payment. The insurance Company then requested details regarding the cancellation dates, proof of cancellation from tracking company, statements showing non-payment. Ultimately Rob could not provide any of these and later it was found that the tracker policy was under his brother’s name, this then caused the assessor to question “insurable interest” regarding the car. Upon further investigation there were other discrepancies found in the statement and the CCTV footage of the centre where the car was parked was requested for viewing. Ultimately the claim was rejected due to Condition of the policy not being met which is “Tracker is required to be active and working in order to have cover.” There are common pitfalls we see time and time again that result in insurance claims being repudiated, or only partially paid out because the ‘contract’ has been broken. Below are five key examples to look out for: 1.The regular driver and owner of a vehicle differ on a policy An example of where this happens, is if a parent is the policyholder of a vehicle that was purchased for their student child who is the regular driver. The parents have an insurable interest in the vehicle as there is a potential for financial loss if anything happens to it. In addition, if the child is not listed as the regular driver, the claim will likely be rejected and it may have an impact on the parents’ insurance risk profile. What can clients do to avoid this? Update your adviser on the full details of any new vehicle added to a policy, so that appropriate cover can be put in place. Do not assume that simply adding a vehicle to a policy will mean that it is covered. 2. Vehicle extras weren’t specified A case in point was when a client put in a claim for a bulbar that was stolen from his bakkie. No extras were noted in his policy and the sum insured was only sufficient to cover the bakkie itself. The claim was therefore rejected. What can clients do to avoid this? Ensure that all non-factory fitted accessories such as bull bars, sound systems and canopies are specified as additional extras, in addition to the sum insured value of your vehicle. Also keep in mind that you might need cover for mag rims on your tyres, so keep their replacement value in mind – anything you have changed or upgraded compared to the standard vehicle must be noted. 3. Security specifications weren’t adhered to All too common, this is an issue when claiming for a burglary/ theft. If your security features weren’t enabled at the time of the burglary, the claim will likely get rejected. If you tell your insurance company / broker that you have a tracker at the time of taking out the insurance policy it is your responsibility as the client to ensure that this tracking devise must have a valid contract and always be in a working order to prevent problems at claims stage, the client is responsible to ensure that the devise is active and working. If the tracker is no longer active the insurance company needs to be notified ASAP. On high value vehicle this may be a requirement in order to retain insurance cover. What can clients do to avoid this? Make sure you ask about any elements of your cover that are your responsibility. If you are covered for having a locked security gate, vehicle tracking devise, an active electric fence or burglar bars on your windows, these features need to be in place and in good working order at all times. This will keep both your property and you safe. 4. You moved but didn’t say anything to your insurer If you move and don’t notify your insurer of your new address, any claims at the new premises will be rejected. This might seem like an obvious change to make to your policy, but we do experience clients forgetting. What can clients do to avoid this? Insurers usually require that you give written notice of your new permanent, physical address before you move. This is because your new address means your risk has changed and your premium may also change. If you would like us to review your current policy contact Edmond in our Short-term department email; service@daberistic.com tel(011)658-1333 ext 105. Source: Apollotechnical.com, Business Report
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We have partnered with Fedgroup in offering their financial solutions for many years. Fedgroup Participation Bond is a five-year term investment. The Growth Option, which compounds interest income, offers a very attractive 10.9% effective rate. This investment is suitable for investors, pensioners and even businesses looking for steady income and/or a fixed return. Your investment is not subject to the volatilities of the stock markets, just steady interest income, month after month. Please contact 083-633-4671 or service@daberistic.com, if you are interested in this investment. Below is my interview of Tony Paulo, Executive Consultant, Fedgroup, discussing Fedgroup Participation Bond: For our investors investing in Morningstar Managed Portfolios, click below to access the latest performance snapshot, market commentary and market performance summary: Morningstar SA Managed Portfolios Morningstar Global Managed Portfolios (USD) SA Q1 Portfolio Commentary Global Q1 Portfolio Commentary Market Commentary - SA and Global Market Performance Summary - SA and Global In partnership with Morningstar: In the US, 2021 ranked as the ninth-lowest peak-to-trough drawdown in a calendar year out of the past 94 years of data. That’s quite a feat, seeing as 2021 was by no means a dull year – global bonds bottomed out, we saw the Evergrande debacle unfold, Chinese tech stocks slumped and then the contagion of it all to emerging markets. Fast forward four months into 2022 and we are back to a period where market volatility and uncertainty are the order of the day and to say that 2022 has been volatile would probably be somewhat of an understatement. In partnership with Morningstar: There is certainly no shortage of things to worry about at the moment. As with all things unknown and uncertain, it is human nature to speculate how things will pan out. Although we have no actual control over the outcome, being mentally prepared for a certain outcome brings some sort of comfort – especially when it comes to our investments. Forecasting outcomes for life is one thing but humans are notoriously bad at correctly forecasting the markets and the subsequent impact events might have on their money. |
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