Breaking up is hard to do – but not in the case of your insurance company. You can switch insurance to whichever company you want, whenever you want. It should never be difficult or ‘wrong’ to change insurance companies. You might want to hold out for a no-claims bonus or think that your loyalty will be repaid with lower premiums, however if you feel that your insurance provider no longer has your best interests at heart, it might be time to move on – no matter what time of year or at what point of your policy term you are. What is a policy and what is a term? Remember that short-term insurance is different from things like medical aid and life insurance in that it doesn’t impose blackout periods or conditions which stipulate when you are allowed to claim. You are 100% covered on your car, home contents or buildings from day one. You don’t get more covered as time goes by. If you pay premiums on a month-to-month basis, you can simply notify your insurer that you want to cancel your policy (your contract). That’s it – simple as that. They may try to woo you with reduced premiums but you are under no obligation to accept their offer. It doesn’t matter if you’re approaching your renewal date or if you are in the middle of your policy term (mid-policy or mid-term). If you’ve paid for a whole year in advance – i.e. for a 12-month term/duration – and you cancel halfway through this period, your insurance company will pay back your premium on a pro rata basis. The only reason why they won’t pay you back is if you’ve claimed to the value of the maximum insured amount. Tip: Remember that all insurance companies look at your claims history to determine your insurability as a client so if you’ve made a lot of claims during your term, a new insurance company might charge you a higher premium than your existing provider. A poor claims history, a previous insurance policy cancelled by the insurer due to excessive/ fraudulent claims and a high risk profile (e.g. geographical location or high performance vehicle combined with an inexperienced driver) are all reasons why you may be refused insurance. Reasons to switch insurers Here are a few common reasons why people decide to call it a day with their insurance company. Have a look to see if any of these apply to you and if it’s time to get a new quote:
Opportunities to relook your insurance Even if you are not unhappy with your current insurer, it might be a good idea to review your cover if: You recently got married or divorced, and you are restructuring your assets, responsibilities and finances. You want to add or remove a driver who no longer lives with you – e.g. a student child who has moved or a child who just got their driver’s licence. You’ve bought a new car or home, or a lot of new and expensive tools/furniture/electronic equipment. You’ve just welcomed a new dog into your home and want to raise your liability cover. You’ve changed jobs and want to update your mileage or where the car is parked, for example. Things to remember before changing Before you make a decision to switch insurers, be sure to compare the extent and limits of cover to your existing policy and check your new policy for excess fees. The deal you are getting may not be as great as you think if you discover that your new insurer offered you a much lower premium at the expense of your type of cover and insured amounts. If you would like us to review your current insurance and cover please contact Marizka in our Short-term department email service@daberistic.com (011)658-1333 Source: Santam
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The nightmare of load shedding continues in South Africa and we share in this article the risks that can affect your insurance during load shedding, advice how to prepare for loadshedding and how ensure that that you are accurately covered if you need to claim for a loadshedding or power surge related incident. Risks that can affect your insurance during load shedding 1. Generator and other alternative power sources It’s vital that alternative power supplies like generators are installed and certified by accredited electricians. If these devices are installed or used incorrectly, you might not be covered for any damages that may result. Before rushing off to buy your own alternative power supply first check how it’ll affect your home insurance. 2. Power surges Power surges that blow your appliances usually occur when the power come backs on. During load shedding, you can switch off all your appliances to prevent them from being damaged when that surge happens. The quickest and least expensive solution for protecting appliances is plugging them into a power strip with a built-in surge protector. These power strips are usually equipped with a fuse that is designed to fail in the event of a voltage spike, cutting off power to your appliances and protecting them. There are multiple power strip options available, so we encourage you to speak to a certified electrician about your options before deciding to purchase a specific one. 3. Fire risks when candles are used for lighting Make sure to always be cautious when working with any flammable materials, ensure you keep a handheld fire extinguisher in your home and have it serviced regularly. Also make sure everyone in the house knows where it is kept and how to operate it. 4. Opportunistic robbery, theft and burglary resulting from tripped and false alarm triggers. When there is load shedding there is a good chance that your home security measures may be affected, which may raise concerns around the safety of you and your family. If you secure your home with a motorised gate and a home alarm system, you may wonder if you’re going to be covered for theft and any other type of loss in the event of load shedding. In most cases, most insurance companies recognises that the cause of the loss was ‘beyond your control’ and will consider your claim for theft where your security systems did not function properly because of load shedding. How to prepare for loadshedding 1. Know what your alternative power options are, and the pros and cons of each. Do your homework on what safety requirements there are for installation. Also, research what the costs may be so that you can chose an option that will suite you and your budget.
2. Follow the load shedding schedule and unplug appliances and sensitive equipment: Unplug appliances or electronic devices that may be vulnerable to power surges. This includes cell phones, computers, servers and LCD screens, all of which could be badly damaged when the power comes back on due to a spike in electricity flow. 3. Test your alarm system: During load shedding, alarm power packs and batteries may wear out faster. This may also cause alarm systems to produce false alarm signals or even malfunction altogether. Many insurance policies require that you perform an annual or bi-annual alarm system check, which must be logged by your security company. Failure to do so could impact your claim, Colman warns. 4. Install reserve power: To ensure that electric fencing and gates still work during load shedding, reserve batteries should be installed and maintained. While reserve batteries generally last for six to eight hours when the power goes out, load shedding dramatically decreases a battery’s lifespan. 5. Secure your premises: Not only will this reduce the risk of the theft occurring, but it will also make the claims process a lot easier in the event that a theft or robbery occurs. 6. Light up your premises: Using solar power or battery-operated lighting can reduce the chance of opportunistic crime occurring. Keep them fully charged. 7. Be vigilant: Criminals may see blackouts as an opportune time to strike. Keep a torch in your car should you arrive home in the dark and need to open your perimeter security gate manually. Make sure you are accurately covered
Source: Santam, Businesstech; News 24
The COVID19 Pandemic has undoubtedly affected many people and businesses – particularly many restaurants who had to limit their capacity and even close temporarily for a certain period. Besides the reduced business volume on an ongoing basis, the complete national lockdown resulted in a tremendous loss of income. Many businesses started asking if short-term insurance cover such loss of income. There were two fundamental issues – first, as per the policy wording, an infectious disease pandemic is not an insured peril, because short-term insurance covers physical risks such as fire, flood, accidental, damage, theft, etc Secondly, the lockdown was a result of direct government intervention instead of the risk. For these reasons, the pandemic was not an insured peril. Insurer Hospitality & Leisure (H&L) – a division of the largest South Africa short-term insurer Santam – saw the devastating impact on their clients in the hospitality sector and decided to offer a Relief Payment to qualifying clients, who had both Business Interruption cover (loss of income) and the Infectious Disease extension. As a result, these clients received payment during the 2020 national lockdown, which boosted their cash flow during the difficult period. Furthermore, H&L emphasized that if the final claim amount ends up being less than the relief payment, the client does not have to refund the additional portion. Some of our own clients at Daberistic essentially benefited from insurance on this very exceptional basis. Testimonial One of our clients XYZ Company (Not real name), were paid R500,000 in 2020 as a relief payment. They then submitted their claim, and the final claim amount was actually R300,000 which means the client got R200, 000 more than what they should have received, and they were not required to pay it back. This once again demonstrates the value of insurance and how sizable and reputable insurers can play a critical role at a time when you need it most. Insurance has an invisible yet crucial role to play in our society, to ensure the stability of our financial system and, more importantly, people’s livelihood. If you would like us to do a quote or do a comparative quote on your current insurance email: service@daberistic.com tel: 011 658 1333 Written by: Edmond Lee (Short-term Broker) In South Africa, having a car is a necessity which at the same time brings the risk of a motor accident. In this article we share some info on what to do after an accident, so that you are better prepared.
Here’s our guide to what to do after an accident: 1.Remain calm and put safety first. Switch on your hazards to warn other drivers. Many people often get out of the car immediately check for damages (or in some cases, argue with the other party), without first checking surroundings. This is very dangerous, particularly on a highway or major roads. 2.If you can, move any cars that may disrupt traffic – before moving take pictures of position car was and any other car involved in the accident. If you can also make marks on the road with chalk or spray paint. If car can’t be moved, call your insurer to get towing service. 3.If you feel unwell after the incident, limit your movement, and wait for paramedics to arrive on the scene. If there are pedestrians that have been injured, or if there is property damaged, it is road law in South Africa you have to remain at the scene of an accident until the police have arrived. 4.Record the following details:
7.Inform your insurance broker after the incident and provide true and accurate information, so that the claim can be processed without delay. If you would like us to do a comparative quote on your current insurance email: service@daberistic.com tel: 011 658 1333. The last two weeks have brought immense loss and turmoil in the country. With the unexpected unrest in the country a lot of business owners are reassessing their insurance cover. SASRIA is the only insurer in South Africa that provides cover for loss or damage to insured property as a direct result, of civil commotion, public disorder, strikes, riots and terrorism. SASRIA does not do direct business with the public but is included in most commercial and domestic insurance policies. SASRIA will be for the following coverages:
On the SASRIA website https://www.sasria.co.za/, they note the following: “SASRIA cover excludes theft. Looting is not a stand-alone SASRIA peril and will only be considered as a valid claim in terms of SASRIA if it occurs during an active SASRIA peril for which SASRIA accepts liability.” The above statement speaks of looting, and it is important to understand what it means, SASRIA defines Looting as the following: “To steal goods, typically during a riot, strike, or civil commotion. Looting must take place during an event that SASRIA covers. SASRIA does not cover theft.” There may also be instances where a fire may occur and that may fall under SASRIA. The insurance company will always look at the cause of the accident. If the fire is caused by a gasoline bomb thrown through a window into the building during a riot, SASRIA will be responsible for the compensation of the claim. Currently insurance companies have paused activating any new business during this time of unrest especially on clients with no current insurance in place. It is therefore important to highlight that insurance cover should be taken before the risk is eminent. If you would like a quote for yourself or your business, please contact Marizka or Ed in our Short-term department service@daberistic.com tel:(011) 658-1333 The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA), in a statement say they have reached an understanding with non-life insurers that are most affected by business interruption cover claims that they will consider interim relief to their policyholders who have the appropriate contagious disease extension, while legal certainty on this matter is being sought from the courts. The interim relief will take the form of once-off payments to policyholders to enable them to continue running their businesses while awaiting the outcome of the legal process. This arrangement follows discussions between the authorities and the non-life insurers. The discussions were primarily aimed at addressing two main issues which are of concern to the FSCA. The first is the impact of the repudiation of contingency business interruption cover claims by some non-life insurers (and delays in processing policyholders’ claims) and the second is the impact of this matter on the reputation of the non-life insurance industry, the statement says. The authorities say they acknowledged in previous communications that business interruption cover is a complex issue. There are different business interruption policies. Those that have an extension for infectious/contagious diseases and the latter constitute approximately 3 to 5% of the policies. The FSCA says it is its view that claims in respect of cover with an extension for infectious/diseases in terms of these policies should be honoured where they meet the terms of the contract and that lockdown should not be used as a ground to repudiate these claims. This approach has also been adopted by some international conduct regulators but is being challenged by insurers and reinsurers globally and locally, which means that legal certainty will have to be obtained from the courts. The legal certainty will undoubtedly take time to achieve, with dire consequences for policyholders who have already been impacted severely by Covid-19 and the national lockdown, and it is in their interest that the authorities and the affected non-life insurers have reached understanding that interim relief payments should be made. The interim relief to be provided by non-life insurers will differ from case to case depending on reinsurer support, financial impact and the number and types of policyholders. The FSCA and PA say they have established the following guiding principles to be applied in determining the interim relief: The interim relief should at the very least focus on those businesses most impacted by lockdown (for example, the hospitality industry) and also on small businesses; The funds provided to a policyholder as interim relief shall not be claimed back by any non-life insurer from a policyholder should the courts decide in favour of insurers. However, should the courts find in favour of policyholders, these funds will be deducted from the total claim amount payable to a policyholder by a non-life insurer; and This relief should be on either an interim basis pending legal certainty or if non-life insurers wish to offer a full and final settlement, such settlement should reflect reasonable value to a policyholder and the implications thereof should be clearly explained in writing should a policyholder wish to accept the settlement on this basis. The authorities support the relief measures that will be provided by many of the non-life insurers that offer business interruption with the extension for infectious/diseases in line with these principles and view them as a necessary and appropriate interim response to the current situation, particularly when one considers that the said non-life insurers are providing financial relief to their policyholders without the support of their reinsurers at this stage. The exact details of relief measures by insurers to their policyholders will be communicated directly by each insurer to their brokers and policyholders. ADVERTISING The authorities say they have agreed with the most affected non-life insurers that, despite the time-barring clauses in the business interruption policies, non-life insurers would not raise the defence of prescription should policyholders decide to lodge court actions against non-life insurers at a later stage. For reinsurance purposes, non-life insurers may require policyholders to lodge their claims before certain dates and the authorities request policyholders, their brokers and legal representatives to co-operate with non-life insurers in this regard. “The authorities will continue to work with non-life insurers that are most affected by these business interruption cover claims to ensure that claims are resolved as quickly as possible and that trust and confidence in the non-life insurance industry can be restored. The efforts by these insurers to provide interim relief to their policyholders with no intention of claiming the funds back from their policyholders is appreciated by the authorities,” the statement says. If you would like to get a quote for your Business insurance contact Edmond and Marizka in our Short-term department email shortterm@daberistic.com, tel (011)658-1333 Source: Personal Finance In South Africa, having a car is a necessity which at the same time brings the risk of a motor accident. And let’s face it – motor accident is the last thing on our mind, hence when we encounter it, we often do not know what to do. The purpose of this article is to share some info on the topic, so that you are better prepared in the event of a motor accident. First and foremost, it is imperative that you remain calm and put safety first. Many people often get out of the car immediately in order to check for damages (or in some cases, argue with the other party), without first checking surroundings. This is very dangerous, particularly on a highway or major roads, hence this must be remembered. If you feel unwell after the incident, limit your movement and wait for paramedics to arrive on the scene. Secondly, you should not admit any liability. This is an accident which no one wanted to happen, so leave the liability matter to the insurer who will represent you in the case. Furthermore, record as much evidence as possible. Fortunately, these days we all have a cell phone, so you can take pictures and record key information such as:
So what should you call the police? If there are no injuries or major blockage of the road, then you don’t have to call the police – you can register the case at the nearest police station within 24 hours. If there are injuries, then the cars can only be moved after police arrives on the scene and takes proper record. In terms of towing, if the car remains drivable, then no towing service is needed. However, if you are worried that driving it may cause further damage (or the car is not drivable at all), then we suggest that you contact your insurer to arrange towing and storage by their appointed service provider to avoid any potential issues. If needed, the police has the right to tow the car for further investigation. Last but not least, remember to inform your insurance advisor after the incident and provide true and accurate information, so that the claim can be processed without delay. If you have any short-term insurance needs, you can contact us on the following channels:
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AuthorKevin Yeh Archives
January 2025
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