People sometimes have the perception that insurance quotes 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 Marizka in our Short-term department email; service@daberistic.com tel(011)658-1333 ext 108. Source: Apollotechnical.com, Business Report
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In this month’s article we share some changing trends in car insurance . Digital innovation and the pandemic has reshaped how we live, work and drive. Thanks to digital technology, you can benefit from better pricing, claims management, more transparency and more convenience in your insurance experience. And things are only going to improve as new digital innovations come to market. Here are some of the trends we expect to see unfold in car insurance over the year to come: 1.Trends in vehicle ownership and getting about In late 2021, fuel prices reached record highs in most countries. South Africa was no exception; after breaking through the R20 mark for the first time in December, the fuel price keep rising and have hit another record high as oil and gas costs soar amid fears of a global economic shock from Russia's invasion of Ukraine. Petrol prices are climbing, money is tight, and Uber offers a cheap and reliable way to get around if you’re not commuting every day. Following the hard lockdown in 2020, many families are wondering whether they really need two cars in the driveway. Surprisingly with most employees forced to work from home had a better outcome than companies and employees could have hoped for. Productivity, work life balances and the hybrid module worked out so well that many companies and people are not planning a full-time return to the office. Several studies over the past few months show productivity while working remotely from home is better than working in an office setting. On average, those who work from home spend 10 minutes less a day being unproductive, and are 47% more productive. Now that we’re not driving around as much as we used to before the pandemic and rising petrol prices, it’s a good time to rethink car ownership. More and more people are downsizing their second car to a smaller and less costly vehicle, delaying the replacement of their car, or even selling one of their cars because they don’t drive that much anymore. And if you decide not to ditch your second vehicle, you’ll want to get an insurance policy that lets you pay less during the times you’re not driving a lot. Daberistic can help you get the best option. 2. Online car shopping and everything that goes with it According to World Wide Worx, South African ecommerce retail sales totalled R30.2 billion in 2020 – more than double the R14.1 billion achieved in 2018. The explosive growth is largely thanks to Covid and social distancing, together with accelerated investment in the technology that enables ecommerce. Now that people are more comfortable with shopping online for groceries, they’re also more interested in buying larger things like cars and insurance via a website or app. We can expect exciting developments in online car retail in South Africa in the next year or two. We may see online dealers and marketplaces make it simple for you to compare financing offers, vehicles and insurance, then get it all in one place. In future, you could complete a car purchase online, from researching your options and applying for a loan, to ordering the car and getting insurance cover. One of Daberistics’ car insurance consultants can assist you easily online. Perhaps you’ll shop for cars by reading reviews and viewing ultra-high-definition videos, only booking a test drive once you’ve chosen a car and want to confirm your decision. This has the potential to put you in complete control of your experience – car dealers, lenders and insurers will all need to up their game in terms of pricing, convenience and transparency to win your business. 3. Mainstream Digital Insurance While insurance had previously lagged behind many other industries in giving consumers access to convenient digital processes, the last year or two has seen mass adoption of pure online insurance offerings internationally. South Africa has been no exception. With digital insurance providers using automation and self-service to drive down overheads and operate efficiently, the result is a significant cost saving being reflected in sustainably lower premiums. As more customers move online to claim from and manage their cover, we can expect continued innovation to lead the charge on lowering premiums. 4. The amount of data available for telematics vendors will continue to increase. There are ever greater numbers of sensors on cars, and the rise of assistive technology means the amount of data available is increasing rapidly. Telematics has already been introduced to the industry. However, the more data that becomes available, the more insurers can know about how their customers drive. Insurance providers will increasingly leverage telematics technology to better understand who their customers are and how they are driving to more accurately price policies. 5. Need to add credit shortfall New vehicles are exceptionally costly right now due to lack of inventory from supply chain. The costs for car claims is skyrocketing because of the higher new and used car valuations, inflation and supply chain issues. This means there is an increased requirement for people to add credit shortfall on their policy. Credit shortfall cover is , In the event that your vehicle is written-off or stolen, Shortfall Cover will pay the difference between your comprehensive insurance and the outstanding balance you owe to your finance house, ensuring you're never out of pocket. To contact one of our Insurance Broker contact Marizka in our Short-term department email; service@daberistic.com tel(011)658-1333 ext 108. Source: Apollotechnical.com, Business Report According to SAPS annual crime stats, almost 128 cars and motorcycles were stolen a day in 2019/2020. On average, 45 cars are hijacked every day in South Africa. In this article we proved steps on what to do after your car has been stolen or hijacked, the claims process and some FAQ. The most important thing is ensure you have the following information on your phone or written down: 1. Insurance and car tracking company contact number 2. Broker contact & emergency number Here are steps to follow after your car is stolen or hijacked:
First Stage 1. Remain calm and put safety first: Always lock your doors while driving or even sitting in the car in the parking area, avoid driving late at night and in high-risk areas, roll up your windows before stopping at a stop sign or redlight. Always be vigilant. In the event of a hijacking never argue with the hijackers, remember your life is more important than your car. The main goal is to get all the passengers out safely and without injury. Once everyone is out of the vehicle check if anyone has been hurt or needs medical attention. TIP: Take a photo of the area where incident occurred, take down the details of any eyewitnesses 2. Activate tracking device: Depending on your type of device, you could activate it yourself or you might need to call your tracking company to get it done. Either way, give them a call to make sure they are aware of the theft / hijacking. Remember to also ask for regular updates so that you can let the police know the status of the search. 3. Check with shopping centre security car guard and CCTV: Contact the centre management and ask for them to view the CCTV footage which may give more insight into the culprits and even the direction the vehicle may have gone or even the car they were driving to assist the police. Also try to see what information you can get from the security guards in the parking lot. 4. Report to the police: Go to the police station within same day and open a case and flag your car on their stolen vehicle database. Border crossings and roadblocks have access to this database and your insurance company should be able to access it as well. You’ll need to give the police specific details like your license plate number, VIN (Vehicle Identification Number, which you can find on your vehicle registration documents), the make, model, colour of your car and details of your tracking company, if you have one. They will also ask you details of the incident and more details about the car. Whether it has scratches, dents, marks, or any other unique features that may help them identify your car on the road. TIP: Take a photo of your police report. It’ll come in handy in the next step. 5. Report to your insurance company / broker: The sooner you let your insurance company know about your car being stolen, the better. This will set the claims process into motion and get you back on the road as soon as possible. Your insurance company will usually need:
After your insurer has received all of the information about your car, they will start processing the claim. Unfortunately, without a tracker installed, the chances of getting your car back are slim. The current recovery rate of stolen vehicles without trackers in South Africa sits at 5-10%, according to Tracker’s Ron Knott-Craig, whereas 80% of cars with trackers are recovered. Either way, getting these steps done as soon as you can improve your chances of getting back on the road ASAP. Remember: If you have car hire added to your policy, your insurer will set you up with a hired car to help you get around for the time being. Second stage Insurer to settle the outstanding amount on your car loan Once your claim has been given the “all clear”, your insurer will ask you if you have an outstanding loan with a finance house. If you do, you will need to request a settlement letter from your bank and forward it to your insurer. From there, your insurer will prepare the agreement of loss document which tells you how much will be paid to you and/or your bank. You’ll need to sign the agreement of loss document and send it back to your insurer along with your car keys and the original registration documents. Please bear in mind that your insurer legally as to settle the loan first before paying any remaining amount to you. The amount paid out will be the value of your car minus your excess. The amount you receive will depend on whether your insurer has insured your vehicle for trade, market, or retail value. TIP: It’s important to know what value your car is insured for. If the amount you owe the bank is more than what your car is insured for, you will need to pay the difference if your car gets stolen. This can easily be avoided with shortfall cover. When first insuring your car, you should always check if you might have a shortfall. Please speak to one of the brokers at Daberistic to find out more about credit short fall cover. FAQ for when a car is stolen or hijacked 1. What if the car is found during the claims process? Sometimes, cars are found and recovered whilst you’re in the process of claiming. If this happens, either the police or the tracking company will let you know and you will then have to let your insurer know. You will need to get a clearance certificate from the police to get your car taken off of the stolen vehicle database. Otherwise, you might be pulled over in your own car and have the police think you stole it! TIP: Never pay anyone for your vehicle clearance/information on your vehicle. Scammers often request money for information about your vehicle to get it released. It’s quite common for stolen cars that are recovered to come back damaged as they are usually stripped. If this happens to your car, report the damages to your insurer. The claim should then proceed as a damage claim rather than a theft claim. TIP: When you get your car back it’s important to go through your car with a sharp eye as it might’ve been used to commit other crimes – you wouldn’t want to be pulled over and have the police find something dodgy in the boot. If you do find anything suspicious let the police know about it ASAP. 2. What if the car is found after the claims process? If your stolen car is recovered after you have received your pay-out, the car will belong to your insurer. However, if any of your property was found in the car, it will be returned to you. 3. You can try to take things into your own hands to increase the chances of recovery (to a certain extent) Some thieves are not as clever as others, and you might just get lucky by looking for your vehicle on online marketplaces such as Gumtree and OLX. Social media can also be a good place to hunt for your car. If you do get lucky and find something, alert your insurer and the police immediately – they will take it from there. 4. Your car insurance doesn’t cover other valuables like your laptop that were in your car. You’ll need either home contents or single item insurance for that Having your car stolen is horrible but it can be even worse if your brand-new laptop and leather bag are stolen along with your car. Car insurance generally doesn’t cover these items so you would need to specifically insure these items under contents or single item insurance. If you have cover and important valuables were stolen along with your car, tell your insurer ASAP. Your insurer will ask for the usual details about your belongings as well as a picture of the police report. If other important documents/information like IDs or credit cards were inside your car, notify your bank and other providers as soon as possible. TIP: Also call a locksmith and have the locks to your home changed if you left your house keys in the car. 5. What do you do if the stolen car isn’t your car? (i.e. it’s a rental car/family/friend’s car) If you’re using someone else’s car and it is stolen whilst in your possession, the first thing to do is alert the police. Next, contact the owner as soon as you can, and they can help you alert the tracking company. The owner will then be the one to contact the insurance company. Source: Wheels 24, Business Insider
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 celebrations of Women’s month we focus on women-specific risk cover against unfortunate events. All Risk Cover Many women we never leave the house without their handbag, it is an extension of us in many ways. It safeguards your cell phone, bank cards, ID, and driver’s license and jewellery. Your handbag ensures you are prepared no matter what your day holds. If you lost your handbag or it was stolen, it would be devastating and a great loss. That is where All Risk Cover steps in. What is All Risk Cover? All risk cover is worldwide cover for personal effect you normally take with you outside. Risk Insurance is another name for Portable possession Insurance. * All Risk Cover can only be included if you have Home Contents or building Cover What items can be insured under All Risk Cover? All risk cover can be taken for any portable possessions you carry with you on a day-to-day basis. Which includes cell phones, cameras, smartwatches, jewellery, laptops, tablets and much more. Any portable electronic devise will not be covered unless you have specified it on your all risk policy, based on their correct value. Recently woman are also able to insure their hair weaves because of the increase in weave theft. A hair weave can cost anything from R2 000 – R10 000 and this can be added in some policies. What are the All Risk Cover sections? 1. Clothing and personal effects - the clothes you wear, as well as the personal items you carry with you, including personal sporting equipment (Limited to a certain amount per item); and 2. Specified items – items that need to be specified for cover, based on their correct value. This includes keys, locks, remote control units, certain collections, bicycles, laptops, tablets, and cell phones. What is included and excluded on all risk cover? With All-risk policy everything is included except if it is explicitly excluded by the insurance company. A great example of a general exclusion will be theft from any vehicle which is left unattended and where the items were not in the locked luggage compartment or locked interior of the vehicle. This will not be covered by the insurance company as it is a specific exclusion. If you would like us do a new or comparative quote, please contact Marizka in our Short-term department 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 |
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January 2025
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