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.
What is Claim Free Group (CFG)
This is the same as the No Claim Bonus.
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.
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.
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.
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)
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
- Mortgagees (Banks providing a bond on a property)
- Financial Institutions (providing loans/financing of machines, vehicles etc)
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.
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.