Page 118 - Policy Wording - Hollard Business Binder (2020-08-26)

Motor
2.2.1.2 The following criteria will apply:
• no unsupported motor;
• named driver/s with full names and ID numbers irrespective of value;
• proof of previous claims prior to quoting;
• no drivers under 30 years of age;
• driver’s licence valid for more than 5 years irrespective of value;
• VIN number is required;
• vehicles to be garaged at night;
• minimum rate of 2%;
• percentage based excess only – based on value:
– vehicles valued up to R999 999 – 5% of claim, minimum R10 000;
– vehicles valued from R1 000 000 – 5% of claim, minimum R15 000.
2.2.1.3 Please see Annexure F for the list of vehicles which are considered "exotic".
2.2.2 Rebuilt and re-registered vehicles
2.2.2.1 If cover is agreed, the following reports must be submitted to confirm roadworthiness and the insurability of the vehicle:
• engineer’s report on the mechanical condition of the vehicle;
• AA report in all instances;
• motor assessor’s report;
• 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.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 117