Page 135 - Policy Wording - Hollard Business Binder (2020-08-26)

Motor Traders
Period of cover
R200 000 R150 000 R75 000
R200 000 x 145% = R290 000 ÷ 65% = R446 153
Say R450 000 R150 000 x 135% = R202 500 ÷ 65% = R311 538
Say R320 000
11 months
R75 000 ÷ 11 x 12
= R81 818 + 7.5%
= R87 955 x 125%
= R109 944 ÷ 65%
= R169 145
Say R170 000
R450 000 + R320 000 + R170 000
= R940 000 ÷ 3
= R313 333
Say R320 000
(R320 000 ÷ R500 000) x %
= 64% (based on own damage limit)
Period of cover
Year 2
(01/04/2016 to 31/03/2017)
Notes
Projected claims ÷ loss ratio
Premium required
Rounded up to the nearest 10 000
Calculation
Year 3
(01/04/2015 to 31/03/2016)
Gross claims x trend
Gross claims x trend
Projected claims ÷ loss ratio
Premium required
Rounded up to the nearest 10 000
Year 1
(01/04/2017 to 18/02/2018)
No. of months expired
Annualised gross claims
Annualised claims + IBNR
Sum x trend
Projected claims ÷ loss ratio
Premium required
Rounded up to the nearest 10 000
Average premium required
Sum of premiums per year
Average for 3 years
Premium required
Rounded up to the nearest 10 000
Rate on own damage
Premium ÷ own damage limit x %
Rate
5.5
Method 2 – flat rate
Internal and external cover
Description
Notes
Rates
Premium calculation
Private type motor vehicle and LDV’s with a GVM < 3500kg
a) Applicable to own damage limit
b) Includes theft cover
c) Includes third party liability cover of
R2 500 000
30%
Own damage limit x rate
Commercial vehicles with a GVM > 3500kg, busses
a) Applicable to own damage limit
b) Includes theft cover
c) Includes third party liability cover of
R2 500 000
35%
Own damage limit x rate
134
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020
Gross claims
01/04/2015 to 31/03/2016
01/04/2016 to 31/03/2017
01/04/2017 to 18/02/2018