Page 8 - Policy Wording - Hollard Business Binder (2020-06-24)

9.7 Any difference in premium following the declaration calculation will be either refunded to the Insured or collected, as the case may be.
9.8 The refund premium shall not exceed:
9.8.1 Stock – 50% of the provisional premium paid;
9.8.2 Business Interruption – 33.3% of the provisional premium paid.
10. AUTOMATIC SPRINKLER SYSTEMS
10.1 Automatic sprinkler systems are designed to prevent the spread of fire as well as to extinguish a fire.
10.2 The system is only effective if the water pressure is sufficient.
10.3 Water reservoirs are required in instances where pressure is insufficient.
10.4 A general guide as to when a system is or will be required:
10.4.1 the National Building Regulations, as contained in SABS 0400 section T, clearly states when a sprinkler system is required;
10.4.2 where the floor area is greater than 2 500 m2 (two thousand five hundred) square metres;
10.4.3 Risk consultants will advise on sprinkler requirements following a survey.
10.5 An ASIB Compliance Certificate is required for all sprinkler systems and inspections should be carried out every 6 months.
11. STOCK THROUGH-PUT AND BUSINESS INTERRUPTION
11.1 The Marine department is the most appropriate division to provide this cover.
11.2 Business Interruption cover may only be considered if the underlying Stock Through-put policy is issued in a subsidiary of Hollard and then only the Branch may issue the policy.
11.3 No Stock Through-put policies may be issued by a Binder Partner.
12. ADDITIONAL WORDING/ENDORSEMENTS/EXTENSIONS/LIMITATIONS
12.1 Any endorsement contained in the schedule will override the policy wording by either adding or removing cover.
12.2 If there is a need to amend the current wording or endorse the wording to amend cover, it has to be approved by Hollard first. When endorsing a policy, ensure that it does not contradict General Sections, impact the treaty intention or impact other sections.
13. MINIMUM PREMIUM
13.1 A minimum premium ensures that we cover the basic expenses incurred in accepting a risk.
13.2 It also assists in maintaining a lower loss ratio.
13.3 Each section in the guideline indicates minimum premiums and it must be applied.
13.4 A minimum annual policy premium of R3 500 (three thousand five hundred rand) must be applied.
14. TERRITORIAL LIMITS – UNDERWRITING ACROSS BORDERS
14.1 14.2
14.3
14.4 14.5
14.6
The territorial limits are defined by treaty.
We should not underwrite across borders due to the local conditions, jurisdiction, legislation and arbitration processes.
To protect the local insurance market, most countries have legislation in place that prevents insurers from outside the country insuring their local assets.
The Hollard Motor policy makes provision for incidental visits across the border only.
Upon advice of across border activity, the underwriter may issue the Riot & Strike optional extension if requested.
Countries within our agreed territorial limits are: Lesotho, Swaziland, Namibia, Botswana, Zimbabwe, Malawi, Zambia and Mozambique.
General Underwriting Principles
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020