Page 96 - Bay Union - Prestige Policy Wording
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Paying out after a claim
How much we pay
If your personal computer is damaged or lost, we will pay you out based on the replacement cost.
How we pay
We can decide to replace your computer for you; alternatively, we will give you the money and you can purchase a new one yourself if we cannot repair it.
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 have lost a laptop that costs R8 000 to replace, we will pay you R8 000 or buy you a new one.
If you successfully claim R8 000 for a lost laptop, and the excess for that claim is R 1 000, your net payout from us will be R7 000.
Your laptop is insured with us for R6 000, but the cost to replace it is R12 000.
This means you are under-insured by half (or 50%). So if it costs R8 000 to  x, we can only pay out half of R8 000 - or R4 000. Equally, if the laptop is stolen, we pay you only half of the R12 000 replacement cost – or R6 000.
93 Bay Union - Prestige Policy Wording - 20 June 2012

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