Page 61 - Policy Wording - Hollard Business Binder (2020-08-26)

Theft
3.5 Motor Vehicles
Motor vehicles in terms of Motor Traders Internal risk no longer requires a separate item under the Theft section. However, in the event that vehicles need to be covered under the Theft section, the policy must be endorsed as follows:
"Vehicles in the Open
It is hereby warranted that:
1. Theft of accessories and/or spare parts are excluded unless the entire vehicle is stolen.
2. Vehicles are to be locked and keys kept in a locked safe at the close of business failing which theft cover is excluded."
3.6 Hold-up
It is important to consider the hold-up risk, particularly for businesses open after 'normal hours', for example, petrol filling stations, late-night cafes, superettes, etc., especially at night. Reduced cover, security arrangements, excesses and increased premiums must all be considered.
3.7 Area
3.7.1 Consideration should be given to the area into which a risk falls when accepting risk and rating risk. For areas see Area Classification.
3.7.2 Remote areas should be avoided or underwritten carefully.
3.8 Petrol in tanks
3.8.1 Cover may be extended to include theft as a result of forced breach of tank filler caps or delivery pumps, or following assault, violence or threat of violence.
3.8.2 Consider:
3.8.2.1 daily dipstick readings of tank capacity must be taken and kept on record;
3.8.2.2 a separate item in the schedule;
3.8.2.3 farmers may keep fuel in tanks where they do lots of work with equipment. If so, the tanks must be locked and if possible contained in a fenced and locked area;
3.8.2.4 generally the tanks are close to the main activities on the farm and it is suggested that the 'locked in a fenced-in area' principle is always applied.
3.9 Target Goods (cover should be restricted as noted below)
3.9.1 The basic rates do not in all instances take cognizance of highly attractive or target goods. For example, certain restaurants may hold large stocks of cigarettes and expensive liquor.
3.9.2 Examples of target goods are (but not restricted to this group):
Type of contents
Limitation to policy
Risk Classification
Cigarettes, cigars and tobacco
Liquor, wine and spirits
Watches, projectors and cameras
Photographic equipment and binoculars
Audio/sound equipment
Television, radios, video equipment
Drugs in any format
R5 000
R10 000
R15 000
R15 000
R20 000
R20 000
NA
4
3
4
3
4
3
5
values after a loss
3.10
Second-hand-goods dealers/pawnbrokers/auctioneers
3.10.1 3.10.2
3.10.3
These risks should be avoided in view of the problems incurred in establishing and the difficulty in establishing ownership of goods.
Pawn shops are under obligation to list all items. If this practice is strictly adhered to the policy must be endorsed to reflect this condition and value as per list plus 10% (ten percent) could be arranged.
In the absence of any of the above, agree on the basis of settlement prior to acceptance as the value will become an issue once a claim arises.
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020