Source – Santam 25/01/2019
The policy wording provides cover for accessories in the definition for Retail value, in Defined Events and Accessories (found in Subsection
The wording describes accessories as “accessories and parts fitted to the vehicle at the time of loss or damage”. When we refer to accessories, it is always to this wider description (i.e. accessories and parts).
All accessories fall into two categories, namely:
accessories that are permanently part of or fitted to the vehicle, and
accessories that are not permanently part of or fitted to the vehicle.
Accessories permanently part of vehicle
These accessories can be fitted to vehicle during its manufacture. Accessories may also fitted by the new owner when taking delivery of the vehicle or during time of ownership. After deciding on a particular vehicle, the owner may advise the dealership of “optional” accessories they wish to add.
The most important feature of permanently fitted accessories is that they are usually not removable, and that if it were removed, it usually affects ability to drive the vehicle.
Examples include leather seats, cruise control, sunroof, xenon lights, rear view camera, climate control, keyless go, mounted crane, metallic paint, park distance control and heads up display. If you remove the leather seats, where would the driver sit? If you remove a sunroof, there would a hole left in the roof.
When an accessory is permanently fitted, it is included in the insured amount of the vehicle. PolicyCenter allows the Insured to list all accessories.
No values are provided for these accessories, as accessories are now considered as included in the insured amount of the vehicle.
There is no need to show separate values for these accessories because these accessories are permanently part of the vehicle.
It is important that the vehicle insured amount includes any accessories that are permanently fitted. As we would not know the value of these accessories, we rely on the Insured to make sure that the vehicle insured amount is correct.
In the event of loss or damage to the vehicle, the claim settlement is based on the vehicle insured amount – always with the assumption that it automatically includes any accessories that are permanently fitted to the vehicle.
The claim is therefore settled in the usual way for the vehicle as a whole unit; accessories are not considered as being separate to the vehicle.
The claim free group may be affected.
The first amount payable for the vehicle and event is applicable to the claim as a whole. There is no different first amount payable applied for accessories that are permanently fitted to the vehicle.
We do not give back to the Insured accessories or parts that are permanently fitted to the vehicle, as this is will have been settled in the claim.
Accessories not permanently part of or fitted to the vehicle
Accessories that are not permanently fitted to the vehicle are usually items that can be put onto or taken off the vehicle. They are removable. The owner may add to and customise the vehicle with a wide range of accessories for many different purposes.
Examples include items such as a canopy, winching equipment, bull bars, nudge bars, roof carrier rack and spotlights.
We provide the Insured with place in the schedule to list these accessories each with their own insured amount.
Claims for accessories not permanently part or fitted to of the vehicle
The policy wording refers to loss or damage arising in two very different ways, namely:
1. when the accessory is lost or damaged with no loss or damage to the vehicle in the same event, and
2. when the accessory is lost or damaged and there is also loss or damage to the vehicle in the same event.
In the circumstances where the accessory is lost or damage without any loss or damage to the vehicle, the claim will only be for the accessory or accessories affected.
The claim settlement is the lesser of the value stated in the schedule or replacement value of a similar item in a new condition at the time of loss.
Average may be applicable.
The claim does not affect the claim free group.
If the item is part of a pair or set, we settle for the entire pair or set.
The first amount payable that is stated for the affected accessory will be applied to the claim for the accessory.
In the circumstances where the accessory is lost or damaged and there is loss or damage to the vehicle in the same event, the claim for the accessory is handled with the claim for the vehicle. They are handled as one claim and not separately.
The value of the accessory is added to the vehicle’s insured amount.
The Company’s payment will be the following:
• the vehicle’s retail value (refer to the definition for retail value) or its insured amount (whichever is the lesser), which is set out in proviso (a) of Defined Events of Sub-section 1, plus
• the insured amount of the accessory or its replacement value of a similar accessory in a new condition (whichever is the lesser).
The first amount(s) payable for the accessory/accessories stated in the schedule does falls away and the first amount(s) payable applicable to the vehicle and event is applicable to the entire claim including the accessories.
In the event of total loss, we do not give back undamaged accessories or parts, as payment for these will have already been included in our settlement amount.
The claim free group will be affected.
SASRIA SOC LTD.’S IMMINENT DANGER SECURITY COSTS COVER COMMUNICATION
The country is presently experiencing a spike in strikes and riots. With this comes an increase in the likelihood of assets being damaged which leads to a surge in special risk claims.
During times of such volatility, companies go into preservation mode and hire additional personnel to help secure and protect their assets. We would like to remind the industry that Sasria SOC Ltd as the only special risk insurance company has suitable security costs cover for such instances.
Our imminent danger security costs cover, provides protection for assets or property prior to damage or loss. Sasria would like intermediaries and agents to remind their customers of this cover. The security costs cover is broken down in the attached circular.
Despite the spike in claims, Sasria is committed to ensuring the best service to customers and the industry. We are equipped and trained to handle any special risk claims assistance your customers may need.
Imminent danger security costs cover (Protection of property prior a loss)
Sasria has reviewed the extension for security costs in prevention of possible impeding loss, and has deemed it prudent to verify the limit of indemnity in relation to the capping of limits on this extension.
The extension is limited to R10 000 000 (ten million rands) total annual aggregate. This cover is only available as an extension to the Material damage and Contract works sections. The cover does not reinstate following depletion of the limit.
The security costs, preventative measures or protection of property cover is available on the following basis:
1 Reasonable security costs, preventative measures costs or protection of property costs incurred to prevent imminent loss as a result of a Sasria SOC Ltd related peril only.
2. Cover is limited to the sum insured as stated on the coupon if below R10 000 000.
3. The R10 million cover is an annual limit that cannot be reinstated following a claim.
4. This extensions is not subject to the R500 million coupon annual aggregate.
5. In the event that limit required is higher than R10 million the following applies:
• Base R10 million cover has to be purchased from Sasria SOC Ltd, and extended cover above R10 million can be bought in open market.
• Should you wish to purchase cover in the market from ground up, you are only allowed to do so with express written permission from Sasria SOC Ltd.
6. The Sasria rate applicable is that of the corresponding Fire coupon and or Contract works coupon.
7. The cover can be included mid-term subject to the following:
• The cover is not retrospective.
• Pro-rated premium must be collected and the coupon endorsed.
8. Cover is applicable and can only be activated on the following basis:
• An active Sasria peril should be present within 10km radius of the insured premises.
• Only registered security companies will be recognised.
• Indemnification is subject to average costs of security service over 6 months prior to claim.
• Cost does not include capital additions made to the premises.
