Page 45 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Motor
All requests for vehicles travelling across the border of the Republic of South Africa require the relevant cross-border letter issued to the client stating the following:
○ the insured vehicle description, VIN, engine and registration details
○ the insured’s personal details
○ the time allowed outside the border as agreed
○ the country agreed to (must be part of the territorial limits stated in the policy wording).
The following must be referred to Hollard for approval:
○ cover for countries outside the territorial limits
○ any extended time period exceeding 30 continuous days or a total of 90 days during a 12-month period, that the vehicle will be travelling across the border.
In terms of liability to third parties, certain countries require that the driver of the insured vehicle effects separate third party liability insurance specific to the country concerned.
Vehicles over R1 000 000
Risks of this nature must be approved by the underwriting manager and the following underwriting rules apply:
○ no unsupported Motor – it must be supported by Buildings and/or Household contents cover
○ named driver/s with full names and date of birth
○ proof of previous claims history must be provided
○ no drivers under 25 years of age
○ the driver’s licence must be more than five years old
○ VIN number is required
○ such vehicles must be garaged at night.
Where there is a deviation in these rules, the risk must be referred to Hollard for approval.
Code 3A vehicle:
A code 3A, is a vehicle which is permanently unfit for use – only usable parts can be sold to the second-hand market and the rest of the vehicle will be demolished. These vehicles may not be rebuilt. At time of claim, the vehicle will be de-registered, the registration documents will be retained by the insurer and the vehicle will never be registered again.
Code 3 vehicles
○ This is a vehicle which has been involved in an accident and cannot be repaired to comply with the manufacturer’s specification.
○ If the damage is properly repaired the vehicle is insurable despite the fact that it will forever reflect a code 3 allocation and will undergo the stringent procedures set out in applicable legislation.
○ Repairs are normally carried out by means of using second-hand or grey parts and cheaper labour.
44 Personal Underwriting Mandates & Guidelines – Binder – Version 3