Page 6 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Fundamentals
○ Contact details
It is important that contact details such as a contact number and email address are obtained by the binder holder to communicate with the insured telephonically, as well as in writing. The binder holder must be able to prove that this has been done appropriately. For example, 31 days’ notice of change in terms and conditions must be in writing.
○ Previous claims and loss history
Previous claims, losses and terms and conditions imposed may influence whether the risk is acceptable or not. Claims experience must be checked with the previous insurer/s. (Keep in mind that clients may have more than one policy with different insurers, for different risks.) The client might not necessarily declare all claims, either due to having forgotten or by deliberate omission of certain details to qualify for lower rates. In extreme cases the client may be evasive in order to obtain insurance where cover was declined, cancelled or where special terms were applied by other insurers.
SOUTH AFRICAN INSURANCE ASSOCIATION (SAIA)
SAIA terminology
SAIA’s "Standardised Terminology" is a list of definitions that was developed by the SAIA Treating Customers Fairly committee workgroup, to address concerns expressed about the confusing use of these terms in the industry. Although we have not used the exact "definitions" in our policy documentation, we have aligned our meanings to be as close as possible and have undertaken to include this terminology in our training materials.
Please click here or refer to Addendum A for the comprehensive list. Everyone must familiarise themselves with this terminology and use it appropriately.
SAIA requirements
Below is a summary of the SAIA requirements as per the 2020 Code of Conduct. The full document which includes the Code of Motor Salvage can be obtained on https://www.saia.co.za/index.php?id=231.
○ Vehicle sums insured must be updated pro-actively by the insurer and binder holder when re-evaluating premiums on the anniversary of the policy. The SAIA Code of Conduct stipulates that values of vehicles must be adjusted on a regular basis, at least once per annum, without any prompting from the policyholder. The onus cannot be placed on the client to update the sum/s insured of the vehicle/s. This is a compulsory function at renewal. If you do not meet this requirement, Hollard needs to be made aware of it.
○ Hollard time standards require that the insured is notified within a reasonable time of acceptance, rejection or disputed claims. Normally this is within 14 days. If a claim is rejected, the client must be given the loss adjuster’s report or assessor’s reports if he/she requests it. All rejections must be agreed and signed off by Hollard and communicated on Hollard stationery. The reason for rejection must be clearly stated in the rejection correspondence.
○ Where dual insurance is discovered Hollard may arrange with the other insurer for simultaneous proportional settlement of the claim or pay the claim in full and then recover the rateable proportion from the other insurer. It is important to note that the recovery time limit is three (3) years after which the right to do so will prescribe. Premiums must also be refunded on a rateable proportion basis.
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