Page 44 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Motor
The B category licence allows one to tow a braked or un-braked caravan or trailer, with a maximum GVM of 750 kg. B licence drivers must retake their learner’s and driver’s licence test in order to be granted an EB licence status should they wish to tow a trailer or caravan with a GVM greater than 750 kg.
There will be no cover if the insured is involved in an accident while towing without the appropriate licence (B or EB) that matches the GVM capacity or tare of the vehicle in relation to the type of trailer or caravan he/she is towing.
Imported vehicles/grey imports
The following must be considered prior to insuring imported vehicles:
○ Regardless of the availability of parts due to special arrangements the potential increase of part prices due to the exchange rate must be borne in mind. The likelihood is that small accidents might render the vehicle uneconomical to repair due to fluctuation in the exchange rate and the price of imported parts.
○ It might not be possible to achieve the desired salvage value due to the vehicle being an import as there may be no demand for salvage of this nature.
SAPVIN vehicles
A SAPVIN (or AAPV) vehicle is a vehicle which has been stolen and recovered with altered engine or chassis numbers. The vehicle is given a new number called a South African Police Vehicle Identification Number. The vehicle is normally 100% serviceable and is not a ‘rebuild’. The main issue with this type of vehicle is that one cannot get bank finance. This results in an average reduction in the value of 30% to 35%, but it could be more. This reduction often affects the trade value.
○ Rules:
– The vehicle must be inspected by an approved vehicle inspector or inspection centre.
– The vehicle must be insured for full retail value.
– The policy must be endorsed to the effect that the maximum payable amount in respect of total loss will be the agreed percentage of the retail value of the vehicle.
Vehicle manufacture date and vehicle registration date
When clients purchase vehicles at the end of the year, there are instances where the registration of the vehicle is delayed until the new year. Examples of why this could happen include, where the client has requested extras to be fitted to a vehicle and only takes delivery in the new year, or where a vehicle is purchased towards the end of December and it is only practical to register the vehicle in January.
When a vehicle is added to the policy, the proposal form would ask for the year of manufacture. For some vehicles, manufacturers bring out new versions of the same vehicle over time. The year of manufacture then helps us to link the vehicle to the correct version of the vehicle in the TransUnion or other accepted industry authority tables used.
Should a total loss claim occur thereafter, the claims settlement will however be based on the date of registration. By law, vehicles must be registered and licensed within 21 days of taking ownership.
Vehicles travelling across the border of RSA (Cross-border)
The personal lines territorial limits have been aligned across personal lines products. The countries which form part of the territorial limits for own damage are Angola, Botswana, eSwatini, Kenya, Lesotho, Malawi, Mozambique, Namibia, Tanzania, Uganda, Zambia and Zimbabwe. Third party liability cover will be limited to Botswana, Lesotho, Malawi, Namibia, Swaziland, Zambia and Zimbabwe. An endorsement will be provided upon request.
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