23 October 2018
I M P O R T A N T N O T I C E
TO ALL OUR VALUED CLIENTS
AVOIDING UNDER INSURANCE / INCREASE IN SUMS INSURED / FREE FUNDS SCHEME / RTGS POLICIES & RTGS POLICY WITH MONTHLY ADJUSTMENTS
Taking into account conditions currently prevailing in the economic market, it is important to remind you all that, with prices rapidly increasing across every sector, the sums insured of your assets are also being affected. May we take this opportunity to remind you again of the options available to help you avoid or reduce under insurance.
OPTION 1 FREE FUND INSURANCE SCHEME (US DOLLARS)
There is a Free Fund Insurance Scheme available. The advantage of the Free Fund Insurance Scheme is to protect your assets from under-insurance in the event of a loss. For all policies underwritten under the Free Fund Insurance Scheme, average condition will not be applied (subject to valuations having being done at inception or renewal.)
Cover is in US Dollars, and premiums are payable in US Dollars.
Payments can be made in US Dollars Cash, or transferred into the Reinsurer’s approved External Account.
If you have access to “Free Funds” we can provide further information on request.
OPTION 2 AUTOMATIC INCREASE IN SUM INSURED (RTGS POLICIES)
If you opt to purchase this option, Insurers can extend the current insurance to include an automatic increase in sums insured. Below is a guideline of additional costs. The option can be incorporated at any time, there is no need to wait for a renewal date.
|Percentage Increase in Sum Insured||Premium Loading|
If you are interested in this option, please request details of the additional premium from our Underwriting Dept.
OPTION 3 NORMAL RTGS POLICY
Not all clients will have access to US Dollars at this time, and the Insurers continue to offer RTGS policies.
This means you are insuring your property using RTGS values and paying premium by RTGS or equivalent.
This option requires you to ensure that sums insured are constantly adjusted in line with current market values to avoid under insurance and average being applied. * The “average condition” can be explained as per below:
*Average is applied if the sum insured of your vehicle (for example) is less than the market value ie. if your vehicle is insured for 50% of the market value, the Insurers’ maximum liability would be 50% of the repair costs, with the balance to be met by the Insured.
In the event of a Total Loss, Insurers would pay out the market value or sum insured – whichever is the lower – and the onus is on the client to ensure that the sum insured is adequate.
(The same principle would apply to all other assets.)
OPTION 4 RTGS POLICY ADJUSTED MONTHLY
Insurers are offering to adjust values on a monthly basis using the Old Mutual Implied Rate. You would then be invoiced every month in accordance to these adjustments. If you take up this option, the average clause will be waived. (This can also be done on a quarterly basis.)
IMPORTANT NOTES PERTAINING TO CLAIMS PROCEDURES FOR RTGS POLICIES
As a result of the challenges currently being faced by Insurers in terms of claims processing, clients opting to remain on RTGS Policies are advised of the following immediate changes in the submission of Claim Documents:
- Estimates must be submitted within 24 hours of the date of accident
- The insurers will accept TWO comparative estimates (unless the quote is obtained from a Preferred Repairer – in which case only ONE estimate is acceptable. Details of Preferred Repairers are available on request.
- Claims where other Repairers are used will be settled on a Cash in Lieu basis and therefore Release Forms need to be signed and returned as a matter of urgency
Please feel free to contact our Broking Team to discuss any of the above options. Alternatively, we strongly urge you to please pay attention to your sums insured on a regular basis, to ensure that your insured values are correct.
As always, we thank you for your support.
EATON & YOUNGS INSURANCE BROKERS
A f r i c o m L i n e s :
086 440 97481 / 2
M o b i l e N u m b e r s :
0785 570 347 0783 181 394