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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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:
Being involved in an accident is an awful experience that every driver is never prepared for. Are you aware of what you can claim for and your procedures going forward? It’s stressful enough if your is car written off by insurance, but if you’re unsure the processes involved, it’s even worse. Barend Smit, Marketing Director of MotorHappy, a supplier of motor management solutions and car insurance options, explains that your car is considered a “write off” when, after an accident, your insurer deems the cost of repairs higher than the insured value of your car. Smit says: "When you’re involved in an accident it’s obviously a highly stressful situation, especially if anyone has been hurt. Try to keep calm and ensure you get all the necessary information required." The following steps are important, if you’ve been involved in an accident:
“In some cases, it’s viable to repair the car, and in others it is safer and more economical to write it off. If your car is written off, and it’s still under financing, you must let your financing company know. Technically, the car is still owned by the financier until your insurance company settles the claim and pays the outstanding financing amounts to them,” says Smit. Your payout from your insurance company will largely depend on your excess (the amount you pay first when you make a claim), the amount you still owe if your car is being financed and the depreciation of your car (the decreasing value of your car based on wear and tear). "If you believe your car can be repaired economically and that it shouldn’t be written off, you can either escalate the issue at your insurance company to find a resolution, or you can appeal to the Ombudsman for Short Term Insurance," advises Smit. MotorHappy has partnered with some of South Africa’s top insurance companies to provide vehicle insurance. Various options are available but the most extensive option available is comprehensive car insurance, which covers you in the event of accidental damage, theft and hijacking. It also covers your car for damage caused by weather conditions such as storms and floods. Comprehensive insurance also covers you if you are responsible for an accident and need to pay for the repair of damages to the other car. "Comprehensive insurance might be the most expensive type of insurance, but it offers the most cover," says Smit. "Insurance might be deemed as a ‘grudge purchase’ but it can protect you from disastrous financial loss if you’re involved in a vehicle that’s not covered by insurance. It’s a fact that many cars on South African roads are not insured so it’s important to protect yourself by investing in insurance." Third Party: Another type of car insurance available to South Africans. Third Party only does not give you any protection or financial assistance if your vehicle is damaged but it does protect you if you cause damage to someone else’s vehicle, or if you injure another person. This type of coverage is the most affordable because of how limited the coverage is. Third Party with Fire and Theft protects you for damage you cause to other people and/or their vehicles, and your vehicle is also covered in the event of fire, theft or hijacking. There is no coverage if your vehicle is involved in an accident with another vehicle. If you would like to register a claim Contact Rethabile in our Short-term department, email shortterm@daberistic.com , tel (011)658-1333 Written by: DLeigh-Ann Londtrop Source: Wheels24 After the annoyance and possible embarrassment of a minor vehicle accident, most people will wonder how much it will cost to fix the scratch or the dent on their car and whether to involve their insurance provider. After all, even damage from a small incident can turn out to cost thousands of rand to fix. Let’s consider some of the factors you should consider in your decision: What is the excess payment? The excess is an amount of money that will come out of your pocket when you claim from your car insurance. If you have a low excess - say, R1500 - it could make sense to claim for a typical small scratch/dent, which is usually in the region of R3000 to R5000 to repair. But if your excess is larger - for example, R10000 - it will probably be more than the cost of the repair. So, you could claim and get a small amount or nothing back for your trouble. On top of that, your insurer may consider that you made a claim during the year when it’s time for your annual premium review. It may assess you as a higher-risk customer and increase your premium as a result. Your premium increase over a couple of years could be higher than the cost of paying for the repair of your car, out of your own pocket. Do you have a no-claims bonus? Many car insurers offer a no-claims bonus. As the name implies, this is an incentive not to claim from your car insurance. The bonus is usually a percentage of your premiums paid back to you in cash, after a set period of time, provided you have not made a claim. You will lose this bonus if you claim after a minor incident, even if it turns out that your claim was lower than your excess. Was another vehicle involved? This is when it starts to get a bit trickier to decide. If the accident was not your fault, the other driver might apologise profusely and promise to pay personally, without involving insurance companies. You should be careful of accepting such an offer, even if it seems attractive not to hassle with insurers and excesses, and all the accompanying red tape. First, you will be on your own, without your insurer to fight in your corner if the person does not honour the deal. You could find yourself chasing them for weeks for the money they promised to pay. Second, it is possible that something that looks like a minor dent on your bumper could hide deeper damage to your car, that might be more expensive to repair than the other person anticipated. Likewise, if the accident was your fault, you can offer to settle out of pocket, but it might not always be a good idea. It could be that it will cost far more to repair the other vehicle than you expected or can afford. Additionally, the other driver might try to hit you with unfair claims, for additional damage and injury, which is when you’d like to have your insurer at your side. Are policies for minor damage worth your while? Many insurers now offer policies that cover scratch and dent damage - the premium may be as low as R100 a month. Be aware that such policies cover only up to a small amount - for example, R3000 per incident. This does not mean the insurer will pay for the first R3000, but that it will pay only if the repair will cost less than R3000. So, if the damage is deemed to be R3000.01, your claim will be rejected. In practice, this cover is seldom enough to result in a valid claim, because even a tiny dent on a mid-range sedan can cost R5000 or more to fix these days. Plus, you will need to accept the word of the insurance company’s assessor about whether the damage will cost more than R3000 to repair. Your friend at the autobody repair shop might be able to do the job for less, but that doesn’t matter. Check the wording of your policy carefully and choose a reputable provider if you are going to go this route. So, what can you do? Scratches and dents are a reality of car ownership. Save some cash in a rainy-day fund for minor repairs and other day-to-day hassles. Try to find an affordable and reputable car repair shop you trust to buff out scratches or do micro-location paint jobs for you. Think about your cash flow and risk tolerance when shopping for car insurance. If you are really worried about paying for repairs out of pocket, opt for a policy with a lower excess. If you are buying from an online provider, you can experiment with different excess values online, or on the app, to understand how reducing or increasing the excess will affect your monthly premium. For any queries please contact Rethabile and Edmond email: shortterm@daberistic.com tel:(011)658-1333 Written by Sumarie Greybe Source : Personal Finance In this article, we focus on Excess – the amount which you have to pay when you claim from your insurer (whether you are at fault or not) unless if you have elected to pay an additional premium for an excess-free policy. So, what exactly is an excess and why do insurers apply these charges to insurance claims? What is an excess? An excess is the uninsured portion of your loss or that portion of the claim you must pay for. When the amount that is claimed is less than the excess, no payment will be made by your insurer. Why do you pay an excess? Insurers use excesses as a way to make sure that you do not claim for every small loss. They do so not only for their own benefit but for all policyholders to ensure that insurance does not become unaffordable, because eliminating these claims and their associated costs helps keep premiums lower for you. An excess also acts as an incentive to ensure that you take responsibility for the safety and security of your possessions. Are there different types of excesses? There are many different types of excesses used by insurers. As a general rule of thumb – the lower the premium relative to the market standard the higher the excesses. Examples as follows:
The insurer needs to bring to your attention, when the contract of insurance is entered into, the standard excess and all other excesses that may be applicable when you claim. You can always enquire from your insurer if an excess can be completely done away with. This is referred to as an excess waiver. The important thing is that you understand why and when you pay an excess so that you can make an informed decision when taking out the insurance. Does an insurer have to recover the excess you paid? If someone else has caused your loss, the insurer may be able to recover the cost of the claim, including the excess you paid, from them or their insurer. The success of a full recovery however depends on several factors, including whether you identified the other party, whether they admitted fault, whether there are any witnesses, whether they have insurance and, if not, whether they have the ability to pay. What if your insurer does not recover the excess you paid? If the insurer decides that it is not going to attempt a recovery of the claim cost or it does not succeed in making a recovery, the insurer should advise you so that you can decide whether to attempt a recovery of your excess yourself. With the consent of the insurer, you may then proceed to recover your excess directly from the third party. We at Daberistic believe that by providing the right advice and solution to clients, we can create win-win relationships which will ultimately benefit everyone. If you are looking for advice on your short-term insurance needs, you can contact us on the following channels:
By Edmond Lee, Insurance Advisor
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: - Date, time and location of the incident - Accident scene - Damages to cars and properties - Police name and case number - Other parties’ driver license, license disc and contact details - Name and contact details of witnesses, towing trucks and other relevant parties So when 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 derivable, then no towing service is needed. However, if you are worried that driving it may cause further damage (or the car is not derivable 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: - WeChat: daberistic - Email: ShortTerm@Daberistic.com - Phone: Working hours 011 658 1333. After hours 076 200 5488 |
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January 2025
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