Page 39 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Non-motor Claims Procedures
4.1 Proximate cause
Proximate cause means the ac ve, e cient cause that sets in mo on a train of events which brings about a result, without the interven on of any force started and working ac vely from a new and independent source.
4.2 Fire
Ac ve principle opera ve is combus on, in which substances join chemically with oxygen in air and usually give out bright light and heat, ame, incandescence.
There is no re within the meaning of a re policy unless there is an igni on either of the property Insured or of the premises where it is situated. Damage caused by heat or fermenta on, unaccompanied by igni on is not covered. The loss to the insured property must be proximately caused by the igni on. Loss due to lightning is not covered by a re policy but if the lightning results in re, damage caused so is covered. The fact that the Insured's negligence caused the re will not exempt the Insurer from liability. Similarly the Insured may recover where the re is caused by the wilful act of a third party without his knowledge or consent. But the Insured will not be able to recover where the loss is caused by his own wilful act or that of someone ac ng with his knowledge or consent. The onus will be on the Insurer to prove the Insured commi ed arson. Damage by water used to ex nguish the re or to prevent it from spreading will be covered. So will damage caused by explosion caused by re. Loss by the during the re will be covered. So will expenses incurred in the reasonable removal of property in order to save it from the re.
4.3 Lightning/thunderbolt
Visible electric discharge between clouds or cloud and ground causing damage to the insured property. The electric ash is usually followed by thunder.
Damage as a result of power surge from the power supplier is not insured. (It presents itself in a similar manner as lightning.)
4.4 Explosion
Damage caused to insured property due to: sudden expansion of gas, gunpowder, bomb, boiler, etc. with loud noise owing to release of internal energy (with very violent sha ering e ect); sudden violent burst with a loud report, an outburst. Loss or damage by explosion of gas for domes c purposes in a building is deemed to be loss by re.
4.5 Subterranean re
Damage caused to insured property by re exis ng, occurring, or done under the earth's surface, underground. There was a very good example of this in the Witbank area some years ago when one of the underground coal-mines caught alight. This will be covered as long as the policy does not exclude damage as a result of mining opera ons.
4.6 Earthquake
Damage caused to insured property by convulsion of earth's surface due to faults or volcanic ac on, a heaving of the ground, or a shaking of the earth. Most policies exclude damage due to mining opera ons, or have other limita ons rela ng to mining opera ons.
4.7 Storm
Damage caused to insured property by violent disturbance of the atmosphere with thunder, strong wind, or heavy rain or snow or hail, a tempest, a wind just short of a hurricane; any intense meteorological phenomenon, a fall of snow, long frost.
4.8 Wind
Air in more or less rapid natural mo on, breeze or gale causing damage to the insured property; a current of air usually horizontal, either natural or produced by ar cial means; air in mo on.
4.9 Flood
Damage to insured property as a result of the in ow of de, river stream, sea. Erup on of water over land, inunda on, outpouring of water, torrent downpour, in great quan es; a great ow of water, deluge, a condi on of abnormal ow of water.
Binder Claims Mandates and Guidelines – 2015/2016 Page | 37