Page 37 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Risk address and overnight parking
The overnight parking arrangement for the vehicle should be considered carefully. This does not pertain only to the actual theft of the vehicle but also to theft out of the vehicle as well as exposure to hail and fire perils. For example, if the vehicle is parked in a complex with access control and not under cover, you might want to consider the theft out of the vehicle and hail risk carefully.
If you are not comfortable with the risk, specific perils could be excluded by means of an endorsement. Vehicles parked in the street are prone to theft claims and an additional theft excess could be considered. If these vehicles are not fitted with an early-warning tracking device the risk must be referred to the binder underwriting manager.
Minimum security requirements for Motor
○ All vehicles with a sum insured in excess of R500 000 must be fitted with an early-warning tracking device, failing which the additional theft/hijacking excess stated in the schedule may apply.
○ The insured may be given fourteen days from the date the cover incepts to install an early-warning tracking device. Theft/hijacking of the vehicle during this fourteen day period will be subject to the excess stated in the schedule. The risk must be diarised and theft/hijacking cover must be suspended if the underwriting manager has determined that the requirement for the tracking device cannot be waived and the client has not installed one within the prescribed period. A pro-rata premium refund of the premium must be paid to the client retrospectively.
Should a vehicle be recovered and require repairs, the basic excess must apply. The driver age or license age excesses will not apply.
Hollard does not have a preferred supplier or specific make/model of tracking device to be installed. The only prerequisite is that the tracking device must be an early-warning-type which means it must have an advance-warning movement detector and the device must notify the tracking company who will send out a recovery unit, when the vehicle moves.
Security requirement – theft of spare wheels
Cover for spare wheels fitted to the outside of a vehicle will be limited and subject to an excess unless it is secured by with a factory fitted or VESA-approved wheel lock.
Please click here for detail pertaining to the specifications of the lock required. Basis of settlement
The vehicle can be insured for either its retail value, retail plus value or an agreed value. At renewal, the sum insured must be adjusted, the premium must be retained and not reduced. The effects of inflation and the average cost of claim continue to rise and must be taken into account. The method of determining the value of the vehicle must be disclosed to the policyholder at all times.
Motor
○
Retail value
The retail value is usually prescribed by the ‘Auto Dealer’s Guide’ published by TransUnion or any similar accepted industry authority. This retail value accommodates all standard factory-fitted accessories/extras. Aftermarket accessories are those items not originally fitted by the manufacturer during the production of the vehicle. The client either asked the dealer to fit them when purchasing the vehicle or bought them separately afterwards. The detailed description and value of these accessories and extras must be noted on the schedule and attract additional premium. In addition to this the condition and mileage of the vehicle will influence the retail value.
36
Personal Underwriting Mandates & Guidelines – Binder – Version 3