![]() Did you recently get married? Move in with your partner? Or maybe you made some adjustments to your property. Every year, our lives change and every new year we ‘spring clean’ the clutter to make way for the new resolutions. But more often than not there is one thing we always put on the back burner. The dreaded, yet all-important, insurance contract. Your contract with your short-term insurer is automatically renewed, but for most consumers it simply ‘ticks over’ without having scrutinised it to check that you’re neither over or under-insured. This is all well and good, until disaster strikes. The ombudsman for short-term insurance, Deanne Woods, repeatedly encourages consumers to review their insurance policies every year. At Santam, we recommend ‘spring cleaning’ your insurance policy may even help you save some money in the long run. Marius Neethling, Personal Lines Underwriting Manager at Santam gives the below four tips on how you can ‘spring clean’ your insurance policy to help you save some money in the long run. 1. Adjust the amount you’re insured for: The main reason for reviewing your policy is to make sure that you are insured for the right amount – this is what insurers call the ‘sum insured or limit of indemnity’. Over the course of the past year, you may have bought a brand new bicycle and a couple of other items, all of which means you will have needed to adjust the contents of your home insurance cover. 2. Underinsurance: This may sound obvious, but, with the exception of motor insurance (see below), the value of the goods insured should equal what it would cost to replace them today, not the original purchase price. Very often we find that goods remain insured for their original value – for example, a leather couch bought 10 years ago would be insured for R6 000. But to replace the couch would cost R20 000 today, so you could be left very disappointed when you leave the shop with an inferior and smaller couch than the one it replaced. For this reason, insurance companies usually automatically adjust your sum insured each year so that the covered amount keeps pace with inflation, and this should be made clear in your policy document. 3. The structure of your home: If you’ve enhanced the value of your home by replacing your roof, redoing your kitchen or improved your home by installing a swimming pool, you need to increase the amount your house is insured for too. Your house (its structure) and your belongings (the contents of your home) must be insured at their replacement value – that is, what it will cost you, at the time of a claim, to replace/rebuild the building (your home) or belongings with similar, new structures or items. 4. Your car: Your car should be insured at a ‘reasonable market value’. Reasonable market value is the retail value, which is what a dealer would sell it for, considering its age, the mileage, the condition of the car and any extras. If you’re wondering what your car is worth, you are requested to contact your broker or Santam directly (should you not have a broker) to work out the reasonable market value of your car with a car calculator provided by Santam. Neethling concludes, “It is important to ensure that you update your insurer about any major changes for many reasons to avoid any disappointments when an incident that requires you to claim from your insurer occurs. Help us help you by ensuring that you are adequately insured for your household contents and vehicle.” To review your personal or business insurance please contact Edmond email: [email protected] Source: Personal Finance
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![]() As we enter the holiday season, many South Africans will be heading off for a well-deserved break. But, it’s also that time of the year where we need to take extra safety precautions. Here are some holiday safety tips to help ensure your clients are doing all they can to minimise risk. Safety at home Burglaries and damages are on the rise during the holidays. That’s why it’s important that your clients are properly covered if something goes wrong. Here are some steps they can take before they lock up and go:
We offer SOS services including roadside assistance, route assistance and home drive assistance, as part of our vehicle cover should anything happen on the road. Help your clients prepare properly by sharing these road safety tips:
Safety for small businesses Smaller businesses are often cash-intensive which makes them especially vulnerable to crime during peak holiday season. If your client is a business owner, there are some precautions they can take to ensure they are protected and prepared for any potential criminal attacks:
Source: Santam ![]() Insurance companies and clients don’t always see eye to eye. Here is some advice from the gurus at independent insurance comparison website CompareGuru on the most common causes of disputes and how to avoid them. Misrepresentation One of the leading causes for rejected vehicle claims is misrepresentation. This alludes to who the regular driver of the car will be. If you’re putting yourself down as the regular driver of the vehicle when somebody else will be using it instead, such as your teenage son, this will become a problem later on. Your claim will also be rejected if: • You have lied about your claims history; • You have lied about your credit history; • You have lied about your security system/devices and; • You have misrepresented whether the insured vehicle will be used for personal or business use. Possessing proof of your most valuable items When it comes to household content, most of the complaints center around how much the insurer is willing to pay out. In many instances last year, the insured was unable to provide proof of ownership or proof of value for the lost goods. These are reasonable requests from any insurance company. When validating a claim, especially when it comes to high-value items, the insured must be able to provide ownership evidence. It’s not a bad idea to keep an inventory of your valuable home contents and retain all proof of purchase where possible. It’s also smart to keep copies of these outside of your home, just in case they are damaged in a fire or taken during a burglary. Theft and burglary were the reasons behind 73% of household content claims. Maintaining Your Property On that note, you may remember that 2017 saw a large amount of storm and fire damage across the country . We had tornadoes tornadoes in the Vaal area, the devastating fires in Knysna, extreme drought in the Western Cape and flash flooding in KZN and Gauteng. Thirteen percent of all claims were due to natural events, and many disputes were about storm damage. The biggest problem came in when insurers refused to pay out claims due to the properties already being affected by gradual deterioration. Negligent property owners did not maintain the property properly and ignored a large amount of wear and tear. Those who did might not have kept adequate records of any maintenance performed. Driving under the influence Without question, the area where insurance companies and clients butt heads the most is when it comes to drunk driving.Most of the claims considered by the Ombud were rejected due to the driver being intoxicated at the time of the incident. In order to manage the risks involved with drunk driving, some insurance companies have even implemented ‘take me home’ type services. If one were to look at the DUI statistics of car accidents in South Africa, though, it becomes clear that we have a serious problem. For help with all of your insurance needs, log onto Compareguru.co.za and compare quotes from South Africa’s leading insurers. Contact the gurus for independent advice and assistance on the best option for you. For assistance with any of your claims please contact Rethabile or Edmond email: [email protected] tel:(011)658-1333 Source: Personal Finance ![]() Being involved in an accident is an awful experience that every driver is never prepared for. Are you aware of what you can claim for and your procedures going forward? It’s stressful enough if your is car written off by insurance, but if you’re unsure the processes involved, it’s even worse. Barend Smit, Marketing Director of MotorHappy, a supplier of motor management solutions and car insurance options, explains that your car is considered a “write off” when, after an accident, your insurer deems the cost of repairs higher than the insured value of your car. Smit says: "When you’re involved in an accident it’s obviously a highly stressful situation, especially if anyone has been hurt. Try to keep calm and ensure you get all the necessary information required." The following steps are important, if you’ve been involved in an accident:
“In some cases, it’s viable to repair the car, and in others it is safer and more economical to write it off. If your car is written off, and it’s still under financing, you must let your financing company know. Technically, the car is still owned by the financier until your insurance company settles the claim and pays the outstanding financing amounts to them,” says Smit. Your payout from your insurance company will largely depend on your excess (the amount you pay first when you make a claim), the amount you still owe if your car is being financed and the depreciation of your car (the decreasing value of your car based on wear and tear). "If you believe your car can be repaired economically and that it shouldn’t be written off, you can either escalate the issue at your insurance company to find a resolution, or you can appeal to the Ombudsman for Short Term Insurance," advises Smit. MotorHappy has partnered with some of South Africa’s top insurance companies to provide vehicle insurance. Various options are available but the most extensive option available is comprehensive car insurance, which covers you in the event of accidental damage, theft and hijacking. It also covers your car for damage caused by weather conditions such as storms and floods. Comprehensive insurance also covers you if you are responsible for an accident and need to pay for the repair of damages to the other car. "Comprehensive insurance might be the most expensive type of insurance, but it offers the most cover," says Smit. "Insurance might be deemed as a ‘grudge purchase’ but it can protect you from disastrous financial loss if you’re involved in a vehicle that’s not covered by insurance. It’s a fact that many cars on South African roads are not insured so it’s important to protect yourself by investing in insurance." Third Party: Another type of car insurance available to South Africans. Third Party only does not give you any protection or financial assistance if your vehicle is damaged but it does protect you if you cause damage to someone else’s vehicle, or if you injure another person. This type of coverage is the most affordable because of how limited the coverage is. Third Party with Fire and Theft protects you for damage you cause to other people and/or their vehicles, and your vehicle is also covered in the event of fire, theft or hijacking. There is no coverage if your vehicle is involved in an accident with another vehicle. If you would like to register a claim Contact Rethabile in our Short-term department, email [email protected] , tel (011)658-1333 Written by: DLeigh-Ann Londtrop Source: Wheels24 ![]() Don’t walk away from your vehicle before checking it is locked in order to mitigate the chances of falling prey to car-jamming, warns Marius Steyn, Santam underwriting manager. Steyn says, according to the State of Urban Safety in South Africa Report, there has been a 58 percent increase in car-jacking since 2011. He says that remote jamming, or car-jamming, is a practice where criminals use a signal-jamming device to prevent a car’s central locking and alarm systems from being activated, leaving a vehicle vulnerable to theft and vandalism. “Car-jamming continues to be an escalating safety concern for many South Africans. Motorist often walk away from their cars while pressing their remote without ensuring that their vehicles are physically locked. Because of this behaviour, criminals are provided the opportunity to commit a crime like car-jamming,” says Steyn. Asked whether insurers quoted clients higher premiums if, when taking out cover, they indicated that they regularly parked in public parking spaces, he responded: “Currently, at Santam it does not influence the premium.” Steyn says that if motorists do fall victim to car-jamming, they should not get in a “jam” with their insurance. The following conditions usually apply to most policyholders: “In most cases, personal insurance policies covers the theft of insured property from a locked vehicle subject to the limitations and conditions of the policy. To strengthen the success of the claims process, video footage from surrounding CCTV, would support (it). If, however, it is later proved that the vehicle was, in fact, not locked, the insurer has the right to reject the claim.” He says some policies require that theft from an unattended vehicle be accompanied by forcible and violent entry or exit. “The best practice is to understand the conditions of your insurance policy. It also cannot be stressed enough that it is important to always check and double check that your car is secure and that you’ve stored your belongings away in a safe place.” According to Aon insurance, remote jamming involves the blocking of car remotes using a household remote, as both car remotes and household remotes operate on a 400-megahertz frequency and criminals effectively prevent the locking action of the car from being activated and can then have easy access to the vehicle and its contents without any forced entry. “Parking areas outside schools are being targeted, as these are particularly easy pickings for criminals, as many parents leave valuables such as handbags, wallets, iPads and laptops in their cars while they walk their children into school. Quieter shopping centres with less security are also a favourite hunting ground,” says Aon. Steyn says you should check immobiliser devices and security systems regularly. If there are faults, get the devices repaired or replaced. Store items such as sunglasses and cellphones in a glove compartment or locked boot. This reduces the temptation to steal. For any Short-Term queries, please contact Edmond and Po-lin in our Short Term department [email protected] tel no: (011) 658 – 1333 Written by: Jospeh Booysen Source: Personal Finance ![]() In this month’s article, we focus on a question which our client often asks us: why is my claim taking so long? We will provide insights into the claims process and some of the key factors that affect the its duration. With “Nowism” being an integral part of our lives - where people want things now more than ever - many clients often get frustrated with the claims process which can be a lengthy one, due to the multiple stakeholders and steps involved. Although its intention is to ensure that the claim is settled in the most fair and reasonable manner for both clients and insurers alike, the clients are often not aware of the continuous effort happening in the background while the clock ticks away. To explain why the claims process takes long, let’s use motor repair claim as an example. Firstly, it is important to acknowledge that there are many stakeholders involved in a motor claim, namely client, broker, third party, police, claims handler, assessor, repairer, parts supplier, and quality assurer. At times, an investigator may also be involved if the insurer wants additional verification to be done. Due to this, a few days here, a few days there, the claims process becomes an inherently long process. Secondly, there are various due diligence in place. For example, a damage assessment is done by an independent assessor to check for all damages on the vehicle, after which an assessment report is sent to an insurer in three to five days. The insurer would then proceed to authorise the claim after they are satisfied with all the information at hand from various parties, including the clients themselves. If needed, the insurer may request the assessor to review certain aspects to ensure that all damages and repair values are accurate. Once authorisation is granted, the repairer would then proceed to order parts and start the repair process. The repairer strips the car and conducts a more thorough review, and more often than not, the repairer would find other damages which mean they need further authorisation from the insurer before any additional repair can be conducted. Thirdly, the duration of the repair depends on parts availability as well. For more popular brands such as Toyota and Volkswagen, parts are more readily available, but for other cars or models that require imported parts, it may take up to three weeks just to get the parts. The repair usually takes about one to two weeks for minor repairs, and two to eight weeks for major repairs. This process is technical in nature and involves various steps and divisions, such as panel beating, fitment, spray painting and quality assurance – all of which are done to ensure that the car is restored to its previous glory. In this regard, the insurer carefully screens and selects their approved repairers to provide peace of mind to the client. In certain cases, the insurers also send their own quality assurers to ensure that the repairs are indeed done to the approved specifications. The above outlines the reason behind a lengthy motor repair process. For a write-off and other losses, the process and stakeholders are very different, but the underlying principle remains the same. Although many people believe that insurers use different tactics to delay a claim, insurers actually want to settle claims as quickly as possible, because there are additional costs involved (many of them are outside of the insurers’ control) when claims take longer than expected. Hence we always advise our clients to include 60-day car hire as part of their cover, so that they are in no way inconvenienced by the claims process. We at Daberistic believe that by providing the right advice and solution to clients, we can create win-win relationships which will ultimately benefit everyone. If you are looking for advice on your short-term insurance needs, you can contact us on the following channels: -WeChat: daberistic -Email: [email protected] -Phone: 011 658 1333 ![]() In this article, we focus on Excess – the amount which you have to pay when you claim from your insurer (whether you are at fault or not) unless if you have elected to pay an additional premium for an excess-free policy. So, what exactly is an excess and why do insurers apply these charges to insurance claims? What is an excess? An excess is the uninsured portion of your loss or that portion of the claim you must pay for. When the amount that is claimed is less than the excess, no payment will be made by your insurer. Why do you pay an excess? Insurers use excesses as a way to make sure that you do not claim for every small loss. They do so not only for their own benefit but for all policyholders to ensure that insurance does not become unaffordable, because eliminating these claims and their associated costs helps keep premiums lower for you. An excess also acts as an incentive to ensure that you take responsibility for the safety and security of your possessions. Are there different types of excesses? There are many different types of excesses used by insurers. As a general rule of thumb – the lower the premium relative to the market standard the higher the excesses. Examples as follows:
The insurer needs to bring to your attention, when the contract of insurance is entered into, the standard excess and all other excesses that may be applicable when you claim. You can always enquire from your insurer if an excess can be completely done away with. This is referred to as an excess waiver. The important thing is that you understand why and when you pay an excess so that you can make an informed decision when taking out the insurance. Does an insurer have to recover the excess you paid? If someone else has caused your loss, the insurer may be able to recover the cost of the claim, including the excess you paid, from them or their insurer. The success of a full recovery however depends on several factors, including whether you identified the other party, whether they admitted fault, whether there are any witnesses, whether they have insurance and, if not, whether they have the ability to pay. What if your insurer does not recover the excess you paid? If the insurer decides that it is not going to attempt a recovery of the claim cost or it does not succeed in making a recovery, the insurer should advise you so that you can decide whether to attempt a recovery of your excess yourself. With the consent of the insurer, you may then proceed to recover your excess directly from the third party. We at Daberistic believe that by providing the right advice and solution to clients, we can create win-win relationships which will ultimately benefit everyone. If you are looking for advice on your short-term insurance needs, you can contact us on the following channels:
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