Short - Term Insurance Brokerage
 |
 |
|
|
|
||
 |
 |
|
Claiming
We provide answers on the following questions regarding your claim:
- Why must you notify your insurer of a claim within a specified period?
- How does my no-claim bonus work?
- About your excess
- When is a claim fraudulent and what are the consequences?
- What happens if I'm under insured?
- What happens if I'm over insured?
Why must you notify your insurer of a claim within a specified period?
It is your right to expect payment within a reasonable time after submitting a claim. It is also the right of the insurer to receive - within a reasonable period - notification of an event, which could give rise to a claim.
Failing to notify an insurer within the stated time may prove costly to the insurer. For example, delays may cause repairs or replacement costs to escalate. Delays can also cause an insurer increased legal liability. Where investigations are required about the theft of your vehicle for example, the sooner the process starts the better the chance of recovery.
In cases of theft or accidents involving your vehicle, or burglaries or theft of goods from your home, or theft or loss of items covered under an All Risks section, you have to report the incident to the police immediately.
The normal period of notification to the insurer is within 30 days of the event for which you are going to claim. If there are compelling grounds to do so, the insurers may choose to extend this period of notification.
How does my no-claim bonus work?
Premiums relate directly to the number of claims submitted. The fewer the claims, the better the premium.
Insurers offer a discount on household contents and vehicle insurance if no claims have been submitted. The best way of saving on premiums is to earn a no-claim bonus because of a claim-free history and then to protect the discount.
Once you claim, your no-claim bonus will be affected, irrespective of whether you are the guilty party. The phrase 'it's a no-claim and not a no-blame bonus' best describes this practice.
If you were the innocent party, Santam will, however, reinstate your no-claim bonus once the claim has been recovered from the guilty party's insurer. There is no time frame for a successful recovery. When third parties are honest regarding the circumstances of an accident, the recoveries are usually made quickly. Others try to give the impression that the Santam insured was the guilty party. It can then take some time to discover the truth.
The excess is the first payment that needs to be made in the event of a claim - regardless of whether the client is guilty or not. If you are not guilty, you can claim the amount back from the other party. Unfortunately, this can take a long time - especially if the guilty party is not insured.
There are certain circumstances when excess cannot be recovered. Amongst others, these include:
- The insured not having any third-party particulars;
- The third party not having any income or any assets to attach;
- The legal costs outweighing the recovery costs;
- The third party having left the country or being untraceable; and
- The merits of the claim not justifying the recovery.
When is a claim fraudulent and what are the consequences?
You make a fraudulent claim if you:
- Claim for items that you did not possess,
- Overstate the value of an item that was stolen, lost or damaged, and
- State incorrectly the circumstances of the loss.
Making a fraudulent claim is a criminal offence. It can result in prosecution and your insurance cover being cancelled. It may also result in you never being able to get insurance cover again.
It is the policy of most insurance companies to take legal action against anyone who submits a fraudulent claim.
What happens if I'm under insured?
When you submit a claim and are under insured, the principle of average will be applied to compensate you partially for your loss.
In accordance with the average clause in your policy, the extent to which you are under insured will be applied to your claim. Suppose your home or house contents are insured for only 50 percent of the replacement value and you submit a claim for R20 000. Only 50 percent of the claim, that is R10 000, will be paid out.
The home loans department of your bank or an expert in the building industry will be able to value your house. Santam suggests that you ask a reputable dealer to determine the insurance value of your vehicle.
What happens if I'm over insured?
When you submit a claim and are over insured, Santam will only pay out the replacement value of the insured items.
Say, for example, the content of your house is insured for R200 000, but it is only worth R100 000. Burglars clean out the house and you claim for the full sum insured. Santam will only pay out R100 000.
Claim forms
The following claim forms are available online:
- General Claim Form
- Motor Vehicle Claim Form
Visit one of our glass suppliers
- National Auto Glass (NAG) (under construction)
- TIGA www.tiga.co.za
- PG Autoglass www.pgautoglass.co.za
- Glasfit www.glasfit.co.za
