How much should I insure for?

• Normally a policy should cover the value of the asset – either the market value while insuring, or the cost of replacing the asset should it be lost or destroyed.

On what basis is a claim paid?

• Generally when you need to make a claim, your insurer will make an assessment of the claim based on the details of the claim and the policy that you bought. The ceiling for a claim is the Sum Insured and this usually applies for the period of the policy. Claims are paid on the actual extent of the loss incurred as validated by documents (bills). If the asset is underinsured, you, the client, will be subject to the condition of average and as such shall bear a rateable proportion of the loss. (See glossary for explanation of Average)

What is an excess?

• Simply put, your ‘excess’ is the amount you are responsible for before the Insurance Company will cover any expenses from your loss. In the case of Motor Insurance -if you are not at fault, the excess should be returned to you if/when your Insurer is able to recover from the other party’s Insurer.

Should I report all automobile accidents to my insurer?

• Yes you should. Even if the accident appears minor, it is important that you let your insurance company know about the incident. If the other driver sues you weeks or months later, your failure to report the accident will make it very difficult for your insurer to gather evidence to represent you. In some cases failure to report an accident may cause your insurer to refuse to honour your policy.

What is a write-off

• Your insurer has the option to decide whether to pay for repairing your car or to declare it a total loss and pay you its market value (net of any salvage). Most standard auto policies will not pay to repair a vehicle if the repairs represent the majority of, or exceed the market value of your car.