Page 36 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Motor
○ the regular driver’s risk address. If the person does not live at the same risk address special attention should be paid to the overnight parking arrangement of the vehicle.
○ if the regular driver has had special terms applied it must referred to the binder underwriting manager to either apply terms and conditions or decline the risk.
Number of claims in the preceding 36 months (black box rating model)/No Claim Bonus (NCB)/Claim-free Group (CFG)
The number of claims/losses in the preceding 36 months (or NCB/CFG) is an important rating factor not only to accurately rate the risk but also to track driver behaviour and must be calculated at a driver level. This means that should a specific driver have a claim, it must affect the premiums for all the vehicles where he/she is noted as a regular driver on the policy. The allocation of a discount or loading must be consistent with the business rules provided under the ’General’ section of this underwriting guide.
The following information must be available on file:
○ Written proof/confirmation from the previous insurer or detailed information pertaining to a telephonic conversation (i.e. date, time, person who confirmed the detail) must be attached to the proposal form to ensure accurate rating.
○ All losses must be captured accurately (whether claimed for or not). Claims for extensions, such as keys, locks and remote controls and windscreen claims, must be recorded in the proposal form, but will not be noted as a claim where the claims/losses rating model is used. Where the client profile warrants a better rate, a discount can be considered in line with the business rules provided in this document.
Number of years of uninterrupted insurance cover
The number of years of uninterrupted insurance is another important rating factor for Motor cover. It was previously required that a premium loading be applied if a client noted no previous insurance cover or had interrupted insurance for a period longer than three months. Management of premium loadings/discounts relevant to this rating factor is now built into the rating model.
The allocation of a discount or loading must be consistent with the business rules provided under the ’General’ section of the guidelines.
Business use vs Commercial use
A personal lines policy is not designed for motor vehicles used for commercial purposes, carrying fare-paying passengers, racing of any form, courier services, etc. Note the differentiation between business and commercial travel below.
Business use or commercial use?
○ Business use: When you use your vehicle for business, such as visiting clients, but without carrying tools, machinery and stock. However, you may carry small samples of the stock you trade in, such as Tupperware, carpets or materials. A doctor who regularly does house calls and visits patients at their homes is using their vehicle as part of their profession most of the time, and should insure their vehicle for Business use. If a doctor only uses their vehicle to visit a patient once a month, then they are not using their vehicle as part of their profession most of the time, and their vehicle should be insured for Personal use.
○ Commercial use: We do not insure vehicles used for commercial use. For instance, if you use your vehicle to load machinery (such as generators or lawnmowers), tools (such as for plumbing or carpentry) or stock (such as pipes, wood, bricks, cement) for a job or project. Or if your vehicle is an employee pool-vehicle and can be used by multiple drivers.
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