Page 75 - Policy Wording - Hollard Business Binder (2020-08-26)

3.
UNDERWRITING THE RISK
3.1 Area
3.1.1 Consider the area into which goods are being transported. Do you have knowledge of the area? Do you understand the conditions, roads, crime, policing, etc.?
3.1.2 The type of goods (food transported under refrigerated conditions, distance to assistance, etc.) may impact on acceptance.
3.1.3 Be mindful of accepting risks in remote areas.
3.2 Premium calculation
3.2.1 It is unusual for any business not to know the amount representative of the annual carry. However, if the annual carry is not available, make sure the higher rate is applied to the load limit and that premium is charged per conveying vehicle.
3.2.2 If rating is based on load limit, ensure that you obtain the following:
3.2.2.1 number of vehicles in fleet;
3.2.2.2 highest value any one load;
3.2.2.3 number of loads per day.
3.2.3 More than one load limit or type of load can be accommodated; the Insured may have different load values and type of goods.
3.2.4 A declaration must be obtained at quoting stage as well as at each subsequent renewal and terms adjusted accordingly.
3.2.5 A minimum annual carry figure of R1 500 000 must be used when calculating premium.
4.
RATING
Please refer to Annexure C for the definitions of the risk classifications.
4.1 Rating on Annual Carry
Goods in Transit
Risk Classification
All Risks Cover
Restricted Cover
Min Annual Premium
Excess
Limit 1
Limit 2
Limit 3
Limit 4
Limit 5
Hijacking Extension
0.385% 0.245%
0.475% 0.290%
0.565% 0.350%
0.850% 0.500%
Decline Decline
25% of base
rate
R2 500
R3 500
R4 000
R5 000
Decline
R2 500
R3 500
R4 000
R5 000
Basic – 10% of claim Minimum R2 500
Theft – 20% of claim Minimum R2 500
N/A
Additional 25% of claim
Basic – 10% of claim Minimum R2 500
Theft – 20% of claim Minimum R2 500
N/A
Additional 25% of claim
4.2 Rating on Load Limit (applicable per vehicle)
Risk Classification
All Risks Cover
Restricted Cover
Min Annual Premium
Excess
Limit 1
Limit 2
Limit 3
Limit 4
Limit 5
Hijacking Extension
3.85% 2.45%
4.75% 2.90%
5.65% 3.50%
8.50% 5.00%
Decline Decline Decline
25% of base rate
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020