FREQUENTLY ASKED QUESTIONS
7
What is a No Claim Bonus (NCB)?
This is a discount of premium which is
earned for not claiming from the insurer
over a period of time. These bonuses are
affected by claims.
8
What is Claim Free Group (CFG)?
This is the same as the No Claim Bonus.
1
Why do I need to Insure?
One needs to insure against losses or
events beyond your control so that the
insurer can put you back into the position
that you were in prior to the loss or event.
2
What is an Excess?
In most instances when you submit a
claim you will have to pay an excess. The
amount of the excess (also known as First
Amount Payable) is the uninsured portion
of your loss for which you are responsible.
It is payable irrespective who is to blame
for the loss.
The excess is intended to discourage
claiming for minor losses and also to
maintain premiums at affordable levels for
you the client.
In certain circumstances the excess may
be recoverable from the third party (other
party at fault who caused the
loss/accident) and insurers will pursue
where possible, to recover your excess
and their claim costs.
Excess structures vary depending on
types of policies it is therefore advisable
that you check your policy or ask us your
brokers.
3
What is Average?
This very important condition applies to
various policies. Wherever applied it is
essential that the Sum Insured represents
the full value in accordance with the basis
of valuation applicable. If, following a loss,
there is found to be under-insurance, you
will be considered to be your own insurer
for the difference between the Sum
Insured and the full value at risk and will
have to bear the pro-portion of the loss
accordingly.
Example:
Sum Insured : R600 000 (i.e. 66.6% of full
value)
Full Value : R900 000
Loss : R120 000
Insurers will only pay : R 80 000 (i.e. 66.6%
of claim)
4
What is Insurable Interest?
You can only insure assets/goods where
you have a legal interest or relation
whereby you benefit by its safety or be
prejudiced by its loss or damage caused by
an insurable peril or event. Examples of
persons or bodies with Insurable Interest
Owners
Mortgagees (Banks providing a bond on a
property)
Financial Institutions (providing
loans/financing of machines, vehicles etc)
Trustees
5
What is a Warranty?
This is a condition in a policy of insurance
which must be complied with literally. Non
compliance with a policy, warranty or
endorsement could jeopardise insurance
cover and claims may be rejected.
6
What is SASRIA cover?
SASRIA (South African Special Risks
Association) is the insurer of damage
caused by Riot whether politically
motivated or not, Strikes, Civil
disobedience, Rebellion, Labour
Disturbances. All these are excluded by
virtually all standard policies of insurance
issued in South Africa and are therefore
only insurable by SASRIA in the form of a
coupon policy. SASRIA insurance is
underwritten by the South African
Government.
Franco Bottari & Associates is an Authorised Financial Service Provider.
We can assist you with all classes of short-term insurance,
commercial and domestic.
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