Page 12 - Claims Binders Mandates and Guidelines

NOTE:
The payment requisition should not be approved by the authorised signatory unless all the requested documents are on file, at the Hollard office i.e. Stolen Recovered Vehicle or Salvage Department. Documents include the signed agreements of loss, vehicle de-registration papers and the like. Note that payment will only be affected if the required documents are on file at the Hollard office i.e. Stolen Recovered Vehicle or Salvage Department.
7.3.4 Goodwill (ex-gratia) payments
On receipt of the signed goodwill payment form, ensure that all conditions which may have been stipulated on the goodwill payment form have been complied with.
NOTE: Goodwill payments are non-VAT rated (zero rated).
7.3.5 Service providers
On receipt of the invoice, ensure that the amount is as per the approved fee structure negotiated discount. This can be checked and verified on Hollard Insure's Procurement Pages.
Ensure that the invoice complies with the guidelines as in 7.2.1 above.
7.3.6 Interest payable in the event of late payment:
According to PPR Rule 17.3.1 (d), the claims processes must at least provide for:
(d) documented procedures setting out the circumstances in which interest will be payable in the event of late payment of claims, the process to be followed in such an instance, and the rate of the interest payable;
7.3.6.1 7.3.6.2
In this regard it is important for binder holder partners to abide by the same process and principles as it applies to Hollard Insure.
Additional Information and guidance
Why do we pay interest on late payments?
• Should there be any unreasonable delay to make payment on a valid claim, the binder holder may, at its own discretion, pay the interest on the claim.
• As a general rule Hollard Insure is not liable for any loss or damage including interest caused by its delay or failure to pay a valid claim.
• When and how do we pay interest on late payment of claims? The rule requires us to stipulate interest, however it does not stipulate a specific timeline or interest percentage.
• Hollard Insure will allow 10 (ten) business days after the accurately completed and signed offer of settlement is received (signed AOL), for a claim to be paid.
• The claimant’s logged complaint must be supported by documentary and valid proof that a financial loss was suffered, and that the payment was paid after more than 10 (ten) business days of the settlement acceptance.
• Interest payable will be calculated from day 11 (eleven), up to and including the date that we receive the formal complaint, together with proof of financial loss suffered.
• Interest payable shall not exceed the lesser of 5% (five percent) per annum, or the current interest rate in South Africa.
• Hollard Insure shall not be liable to any party to pay compensation for any loss/ damages incurred by the third party.
• It is not advisable to pay against the claim, as this will affect the claimant’s loss ratio.
• Any interest payable on late payment of claims, must be paid out of Opex.
• No VAT is payable on the interest amount.
General Procedures
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Claims Binder Holders Mandates and Guidelines – V6: 2022