Page 87 - Bay Union - Prestige Policy Wording
P. 87

You always pay the  rst amount, or excess
You will always have to pay the  rst part of any claim settlement. This is known as the excess, and is listed in the excess schedule.
What if you are under-insured?
If you have insured your property for less than its replacement value – i.e. you are under-insured – then you will have to bear a proportion of any loss in the event of a claim. In calculating this, we will apply the principle of average.
If you successfully claim R2 000 for a lost watch, and the excess for that claim is R 250, your net payout from us will be R1 750.
Being under-insured
Your diamond ring is insured with us for R40 000, but the cost to replace it is R80 000.
This means you are under-insured by half (or 50%). So if R10 000 of the diamonds are lost, we can only pay out half of R10 000 – or R5 000. Equally, if the ring is lost we pay only half of the replacement value of R80 000 – or R40 000.
Bay Union - Prestige Policy Wording - 20 June 2012 84

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