Page 133 - Policy Wording - Hollard Business Binder (2020-08-26)

1. GENERAL
1.1 In keeping with the market, cover in terms of Internal and External risks are combined into one section named Motor Traders.
1.2 Do not extend cover for unaccompanied demonstration.
1.3 Cover for own vehicles (registered in the name of the Insured) is excluded.
1.4 Trader’s cover is not limited to motor dealers but can be bought where the Insured is responsible for loss of or damage to customers’ vehicles (e.g. panel beaters, car wash/valet service, auto electricians, etc.).
2. UNDERSTAND THE RISK
2.1 Motor vehicles as defined:
2.1.1 vehicles forming part of the dealer stock register, which can be new or used vehicles;
2.1.2 vehicles demonstrated;
2.1.3 customers’ vehicles on the insured premises for servicing, repair, cleaning, etc.
2.2 Ensure that the following information is obtained as this will impact on theft and storm damage exposures:
2.2.1 areas which may impact on theft:
• Are vehicles locked when not being worked on?
• Are vehicle keys locked away when not in use?
• Are vehicles parked behind bars, gates, etc.?
• Are there security guards on-site? 24 hours or after hours only?
• What kind of access control is in place?
2.2.2 vehicles in the open:
• Are vehicles parked under hails nets or similar structures?
• Is the premises located close to a body of water (rivers, dams, etc.)?
• Are the vehicles parked close to structures that can fall over?
2.3 There is only one own damage sum insured which applies to both internal and external risks. However, cover can be restricted to Internal or External risks only with the appropriate discount being allowed.
2.4 Theft cover is now automatically included whether the vehicle is on the insured premises or on the road.
2.5 Cover for windscreen/glass and work way from premises is also automatically included.
2.6 Vehicle stock must be covered under the Fire section due to the risk of accumulation.
2.7 At claims stage the vehicle value can be determined in two ways:
a) current retail value with an adjustment for accessories and/or extras as noted in the TransUnion Auto Dealer’s Guide (or similar accepted industry authority);
b) value stated in the books of the dealer, being purchase price plus additional costs to improve the condition of the vehicle or to maintain roadworthiness.
2.8 Vehicle delivery companies are considered high risk and cover should therefore be declined.
3. UNDERWRITE THE RISK
3.1 3.2
Trader’s policies only to be issued with supported business.
Obtain a completed questionnaire at new business stage and annually at every subsequent renewal and keep a copy on record.
Motor Traders
MOTOR TRADERS
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020