Page 46 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Motor
○ In order to consider these vehicles to be insured the following rules must be complied with:
– the vehicle must be assessed by an approved motor engineer/assessor or an AA report confirming that
the vehicle is roadworthy must be provided
– the vehicle must be insured for its full retail value
– the policy must be endorsed that the maximum payable amount in respect of a total loss will be the percentage agreed (e.g. 70% of the retail value)
– a valuation of the vehicle by two accredited vehicle dealers must be supplied
– confirmation that all parts are readily available in the Republic of South Africa and there are no
additional costs involved in the sourcing of parts.
Code 4 vehicles
A code 4 vehicle is a vehicle which has been involved in a serious accident and is considered to be beyond repair. Such vehicles must be scrapped and must not be used on a public road again.
Non-standard-type vehicles
Accepting cover on non-standard vehicles or vehicles changed beyond the manufacturer’s specifications should be avoided. Risks of this nature must be approved by Hollard in writing.
The accident portion of the premiums takes into account the cost of parts as well as labour. Non-standard vehicles may have parts that are unique to the actual modification or upgrade which are not catered for in generic rating. The time to repair such vehicles as well as additional labour costs are also problematic. Delays in repairs due to the unavailability of parts can potentially lead to dissatisfaction and brand damage.
Note: If a part needed for the repair of the vehicle is not available in South Africa as a standard (ready-made) part, we will pay an amount equal to the value of that part up to the limit stated in the schedule. We will also pay all reasonable costs to transport the part (but not by air).
The following can be regarded as non-standard-type vehicles:
○ upgraded or modified vehicles
○ kit-cars
○ code 3 vehicles.
Vehicles registered in a foreign country:
○ foreign vehicles must not be insured as Hollard will not be able to process the wreck and be compensated for the salvage in the event of a write-off.
○ SARS does not permit insurers to dispose of foreign vehicles in RSA.
○ foreign vehicles are easy targets in RSA as the vehicle cannot be circulated on the National Police System in the
event of theft.
○ the policyholder must ensure that the vehicle is registered in South Africa or the applicable province within 21 days of having permanently moved to the country or province.
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