Page 11 - Hollard Namibia – Motor & Household Policy Wording

Understanding your policy
We do not pay interest
Although we strive to settle all claims promptly, we cannot be held responsible for any interest on an outstanding claim. No interest will be payable on any amount due by us in terms of this policy unless a Namibian Court of Law orders otherwise.
What happens if you are under-insured?
If you insure your property for less than its new replacement value – this means that you are under-insured – then you will have to bear a proportion of any loss in the event of a claim. In respect of vehicles, where you do not qualify for a new vehicle, you must insure the vehicle for its retail value, including optional extras and added equipment. In calculating underinsurance, we will apply the principle of average.
Under no circumstances will we ever pay out more than the sum insured.
You must comply with security terms and conditions
If you submit a burglary, theft or hijack claim, you must be able to prove to us that at the time of the insured event the required / declared security measures or device:
o was already installed; and
o was in a working condition; and
o that the security device was armed; and
o that your contract was active; and
o that you complied with the conditions of that contract.
The payout is always reduced by the excess
Don’t forget that for every valid claim, you will always have to pay the first amount where applicable, also known as the excess.
You must not dispose of or abandon damaged insured property
If there are damaged items as a result of a claim, you must not abandon them or get rid of them until we agree that you can do so. In the event of payment by us for a total loss, the salvage shall become our property.
You must obtain our approval
You must obtain our written approval before repairing or replacing any damaged or lost property. This does not apply to emergency repairs to your car or for expenses to safeguard your property up to the amount stated in the LIMIT SECTION.
We will make payment to the credit provider
Where a credit provider has an interest in the insured property, payment may be made to the credit provider in terms of the credit agreement. The credit provider's acceptance thereof shall discharge our liability towards you for that portion of the claim.
Example of how underinsurance / average is calculated:
a) Loss:
b) Sum Insured:
c) Replacement Value: d) Settlement:
e) Outcome:
N$24 000
N$75 000
N$100 000
N$24 000 x (75 000 / 100 000) = N$18 000 less the excess 25% Underinsured (own insurer) and 75% payment due by us
Example
If there is an excess of N$2 000 on a N$20 000 claim, then you will receive a payout from us of N$18 000. The excess payable on all claims is stated in the SCHEDULE.
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