Page 16 - Hollard - Private Portfolio Policy Wording

How we may se le a third-party liability claim
In the event of a claim for liability towards a third party, we may nalise the claim by paying you the limit of liability, or any lesser amount for which the third-party claim may be se led. This will release us from any further liability for the claim.
We do not pay interest
Although we strive to se le all claims promptly, we cannot be held responsible for any interest on an outstanding claim. We do not pay interest on any amount due by us unless ordered to do so by a South African court of law.
The pay-out is always reduced by the excess
Don’t forget that for every valid claim, you will always have to pay the rst amount, also known as the excess. For example, if there is an excess of R1 000 on a R20 000 claim, then you will receive a pay-out from us of R19 000. The excess payable on all claims is listed in the Schedule.
Wait before disposing of damaged property
If there are damaged items as a result of a claim, you must not abandon them or get rid of them un l we agree that you can do so.
What happens if you are under-insured?
If you insure something for less than its value – i.e. you are under-insured – then you will have to bear a propor on of any loss in the event of a claim. In calcula ng this, we will apply the principle of average.
Under no circumstances will we ever pay out more than the sum insured.
Claims
Example
Your household contents are insured with us for R200 000, but the cost to replace all the items is R400 000. This means you are under-insured by half (or 50%). Put another way, you are only ever insured for half of any claim you make.
So if R50 000 worth of your contents is stolen in a the , we can pay out only half of R50 000 – or R25 000. This is referred to as the principle of average.
The pay-out is calculated as follows:
Replacement value Sum insured Storm damage
Under-insurance calcula on:
R200 000 R50 000 R400 000 X 1
R400 000 R200 000 R50 000
= R25 000
14 Hollard Private Por olio