Page 117 - Policy Wording - Hollard Business Binder (2020-08-26)

2.2
2.1.3.1 This basis will apply to certain trailer, caravans and special types where the current retail value cannot be established and the vehicle is not classified as classic, vintage or imported.
2.1.3.2 The broker must ensure that the sum insured is reviewed annually at every subsequent renewal and adjusted accordingly.
2.1.3.3 Points 2.1.2.6 and 2.1.2.7 noted under Agreed value basis will also apply to vehicles insured according to broker value.
Vehicle types requiring special attention
2.2.1 Exotic/Executive/Hi-performance vehicles
2.2.1.1 The above vehicles have become high risk and therefore, a decision was made that these vehicles must be referred to Hollard for approval.
2.1.3 Broker
2.1.2.9.1 2.1.2.9.2
2.1.2.9.3 2.1.2.9.4
2.1.2.9.5 2.1.2.9.6
value
Classic vehicles are generally vehicles of 20 years and older, but age is not the only deciding factor.
Classic and vintage vehicles appreciate in value and are therefore considered worthy of preserving and restoring or they have some element of uniqueness that attracts enough interest for it to be classified as a collectable.
The annual mileage is restricted to 10 000 km. Should a higher mileage limit be required, please send the request to Hollard for approval.
Owners of classic vehicles can approach a Classic Car Club for a valuation indicating the condition and value.
Minimum rate of 1.2% must apply.
The following warranty must be stated in the schedule:
Keep fire extinguisher in the vehicle – Classic cars
You must keep an SABS-approved and fully serviced portable fire extinguisher in the insured vehicle. Hollard may reject the Insured's claim for loss or damage to the vehicle caused by fire if the Insured does not comply with this condition.
Motor
2.1.2.3 The SAIA code of conduct places the full onus on the broker to review the vehicle sum insured annually.
2.1.2.4 If a vehicle is insured on an agreed value basis, a valuation and photographs must to be obtained at inception and thereafter annually at every subsequent renewal of the policy.
2.1.2.5 Photographs of the vehicle must include all four sides as well as the glass, engine, interior and the odometer reading (while the vehicle is switched on).
2.1.2.6 Risks accepted on the agreed value basis must be approved by Hollard in writing.
2.1.2.7 The request to agree a value must be accompanied by a dealer valuation confirming the condition and value of the vehicle.
2.1.2.8 The following warranty must be stated in the schedule:
"Agreed value
If the Insured has supplied Hollard with written proof of the value of the insured vehicle received from an expert, such as a motor dealer or motor club, then Hollard will accept that figure and call it the agreed value. All claims will be settled based on this agreed value, provided the Insured supplies an updated valuation annually at every renewal date of the policy. If the Insured does not comply with this requirement, Hollard will obtain a valuation from an expert, taking into account the condition and mileage of the insured vehicle and this value will be used at claims stage."
2.1.2.9 Classic vehicles
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020