Page 117 - Commercial - Underwriting Mandates & Guidelines Binder

Motor
• 3 valuations:
– 1 x dealership (same brand as the vehicle);
– 2 x independent dealers (required annually at every renewal).
3.3.2.2 The basis of valuation is retail value x 65%.
2.2.3 Golf carts
2.2.3.1 Carts are usually only used within the confines of a golf estate. Any other use must be declined.
2.2.3.2 Limit Third Party cover to R250 000.
2.2.4 Off-road use
This risk is declined and should be insured by a specialist underwriter.
2.3 Territorial limits
2.3.1 Our territorial limits include Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zambia, Zimbabwe, Malawi and Mozambique.
2.3.2 Only insure vehicles that are registered in RSA.
2.3.3 Reasons for not insuring vehicles registered in other countries are (but not limited to):
• deregistration almost impossible;
• salvage has no value without deregistration;
• unable to register a stolen vehicle and as such recovery is impossible;
• if settled, Reserve Bank to clear money transferred;
• import duties and VAT must be declared;
• potential SARS issues (customer avoiding VAT);
• potential Customs issues (avoiding import duties);
• signatures and negotiations problematic.
2.3.4 Across border cover
2.3.4.1 The policy is extended to cover the insured vehicle whilst travelling to any of the territories listed above. However, third party liability cover must be purchased from the country being visited and a third party liability motor car insurance certificate will be required at the border post.
2.3.4.2 Cover is subject to the Hollard Business Policy terms, conditions, provisions, exceptions and exclusions.
2.3.4.3 If branches are required to issue a cross-border letter, the letter issued should contain the following minimum information:
• policy number;
• name of policy holder;
• name of broker/administrator;
• name of insurer;
• vehicle details, including:
– year/make/model;
– registration-, engine- and VIN numbers;
• cover type (Comp, TP or TPFT);
• vehicle use as per policy and purpose of use outside RSA;
• period of stay across border (actual dates);
• designated driver and licence details (i.e. EC);
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