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Know Your Policy – Part 9; Underinsurance – Don’t let it happen to you

            What is House Contents cover? House Contents insurance is a section on your personal policy, which may include your vehicles, buildings and specified all risks items. House Contents insurance covers your personal belongings inside your home for fire, theft and various other risks. What is the danger of being underinsured for House Contents? There are two very important points to understand; 1. You must include ALL of your belongings in your sum insured 2. You must insure your belongings at NEW REPLACEMENT value In other words, you cannot leave out your lounge suite from your house contents sum insured just because it is old, or you don’t want to insure it. If you do, you will be underinsured and

Know Your Policy – Part 10; Understanding your brokers role better

            What does my broker actually do for me? In the case of Kayser Baird, almost everything! You get many different types of brokers, from small one or two person brokers that deal with the insurance call center on your behalf, to large global brokers that also have their own insurance licenses, the key is to choose a broker that suits your particular needs and wants. Santam for example is an intermediated insurance company which means that they do very little direct insurance, almost all of their clients are with brokers. If you are a Kayser Baird client, your broker does 98% of the administration pertaining to your policy. Kayser Baird manages your insurance policy on its own systems, either directly interfacing with

Know Your Policy – Part 8; Your Motor Excess

            What does your motor vehicle excess really mean? There are a number of common misconceptions about motor excesses and the way they are treated under different types of motor claims. The most common of these is that consumers often believe they won’t have to pay an excess if somebody else causes an accident. Both drivers would be responsible for the excess under their own policy, however if one insurance company recovers money from the other insurer then their client would be refunded their excess. In some instances the driver at fault may not have insurance, or he may deny being at fault when approached by his insurer. In both instances there may be no recovery, and therefore

Know Your Policy – Part 7; Optional extensions on your personal policy

            Optional Extensions on your personal policy Because everybody has different circumstances, there is no “one size fits all” personal policy and you need to discuss your policy with your broker to make sure that you are covered where we you need cover, and that you are not paying for insurance that you don’t need or want. Some of the most common optional or paid extensions that you can take on your personal policy include the following; Car Hire Clothing and Personal Effects / Portable Possessions cover Mechanical / Electrical Breakdown for your house contents Accidental Damage for your buildings Car Hire In the event of you having an accident or some other insured event that puts your car

Know Your Policy – Part 6; Load shedding and your insurance policy

          From an insurance perspective, many questions have arisen about how load shedding affects personal and business insurance policies. In Part 6 of our “Know Your Policy” articles we answer some of the most important questions and welcome further comment or questions that you may have. Security Your personal insurance policy may require you to have a linked alarm system fitted at your home. If this is the case, it is your responsibility to ensure that the alarm system is in good working order, and that the monitoring company is receiving a signal when there is an activation. Your security system relies on electricity for power and in the absence of electrical supply, electric fences become ineffective and alarm

Know Your Policy – Part 5; Convenience Benefits

          Kayser Baird underwrites your personal insurance policy with either Santam or Hollard, the two largest insurers in South Africa. Both the Santam and the Hollard personal policy contains a range of very useful convenience benefits. In the case of Santam clients, these benefits are built into the premium and are automatically included in the cover, for Hollard client’s you are able to opt in or out of this service which costs R20 per month. What is covered? The three most frequently used benefits offered are; Home Safe Chauffeur Road and Accident Assist Home Assist Other useful benefits are; Emergency Medical Assist (access only – costs for your account) Legal Assist How Do I access these benefits? If you

Outsurance looks to brokers for future growth

After years of attacking the broker model of insurance and encouraging client’s to supposedly save money by “cutting out the middle man” – Outsurance looks set to change their core strategy by adopting the broker model themselves. Outsurance have just released a job advert on LinkedIn for somebody to set up a broker distribution model for their Commercial Insurance product, something that is almost certain to be seen as a U-turn on one of their core branding pillars – cut out the middle man, save money. We called Outsurance today and Tanya Els, Business Client Care Manager, confirmed that Outsurance recognised that some of their clients “still want the personal touch” and that they would offer their Commercial Insurance products through brokers from January 2015. Bizarrely, as at today Outsurance still states

Know Your Policy – Part 4; Your Policy Excess Structure

Having an excess or first amount payable is by no means compulsory, you can elect to waive the excess but in return the insurance company will charge you a higher premium. When you reach the age of 55 Kayser Baird will waive your excess for free but up until this age it is an important component of your insurance which helps to keep your monthly insurance premiums down. The vast majority of insurance products in South Africa include an excess on the Vehicle, Buildings and All Risks sections of the policy. The lower the excess, the higher the premium and vice versa. Some insurance policies carry a “hurdle amount” which means that you don’t pay an excess for small claims, but when your claim

Know Your Policy – Part 3; Residential Buildings Insurance

Historically in South Africa it was a bank requirement that you had to insure your building with the bank that held your bond. This is no longer compulsory and you may insure your residential building with any of the leading insurers. Despite this, many homeowners still have their building insured with their bank, often paying high rates while being underinsured at the same time. If your buildings insurance for your house has been with the bank for a long time, it is possible that your sum insured for your house is still based on your original purchase price, and may be significantly lower than the correct insurance value which would be the cost to re-build your house and the other fixed improvements. Different banks

Know Your Policy – Part 2; All Risks Cover

Most people understand that House Contents insurance covers you for fire, storm and theft of your belongings whilst inside your residential property. When people leave their houses and take belongings with them however, things become a bit vague. This post is to tell you more about how to correctly insure your belongings when you are away from your home. Your personal insurance policy has a section called “All Risks”, “Out and About” or a variety of other names. This section enables you to individually specify items such as camera’s, laptops, jewellery, sporting equipment etc and also to take blanket cover for clothing and personal effects when you are away from your house. The cover is generally referred to as “All Risks” because it covers you for any type of loss,

Know Your Policy – Part 1; The Average Clause

It is a harsh reality that policy holders don’t always get paid out in full for their claims. There are many reasons for this but the most common reason is underinsurance. If you have insured your house contents for R200,000 and you actual replacement value is R400,000 you will only be paid out 50% of any house contents claim, irrespective of how much you are claiming. This is known as the “Average Clause” and although it may seem unfair at first, it is a vital part of any insurance contract. The average clause does not only apply to personal insurance policies, but to a number of other types of insurance contracts as well. How does it work? You and your neighbour may live in identical houses,

Directors and Officer Liability Insurance – A Mandatory Cover

Since the introduction of the King III Report and Code of Governance and the introduction of the Companies Act in 2008, Directors and Officers Liability Insurance has been rendered crucial for all companies regardless of size or incorporation, and mandatory when a Board of Directors is assembled. What does Directors and Officers Liability Insurance cover? Wrongful acts such as breach of duty, error, omission, misstatement, sexual harassment, defamation, wrongful termination are typical areas of cover. The insurance protects the individuals personal assets, spouses, heirs and estates from claims against them for damages caused by a wrongful act. In addition, the policy will cover costs, charges and expenses incurred for defence of allegations of criminal acts, wilful misconduct, reckless trading and breach of trust.

House Contents Insurance – more than just an afterthought

Many South Africans, particularly younger people consider House Contents cover to be an add-on to their vehicle insurance and a way to keep their vehicle rates low. Insurance companies provide cheaper rates on your car insurance if you include house contents cover on your policy and as a result, people will often just add the minimum sum insured for the contents of their home. Being under insured for House Contents places the policy holder at significant risk, because the insurance company will apply average in the event of a claim and the amount paid out could be significantly lower than the amount of the loss. Another factor influencing under insurance for house contents cover is that people usually underestimate the value of their

Is your company in a product supply chain? The Consumer Protection Act affects you!

The new 2008 Consumer Protection Act came into effect in April 2011 and immediately companies could be held liable for loss or damages cause by their products irrespective of whether or not they are negligent. Prior to the new act, a consumer would have to prove that the person or business that they received the product from had been negligent following loss, injury or damage caused by the product. Under the new act, the consumer can choose where to go in the product supply chain to look for recourse, and is no longer required to prove negligence. Products Liability insurance has had to adapt – with the “no fault” clause being removed to cater for new claims where the insured’s client is not

Kayser Baird introduces “Intelligent Alerts” for policy holders

Kayser Baird has taken the lead in the industry and has started sending policy holders “Intelligent Alerts” about possible weaknesses in their insurance cover. Repudiated or underpaid claims are the single biggest source of frustration for policy holders, and one of the biggest challenges for insurance companies. It gives insurance a bad name, and is a major contributor to the high “churn” in the insurance industry – when policy holders move their insurance frequently from one insurer to another. Insurance companies do not actually want their clients to be paid out less than what they expected when they claim. It causes them to lose business. Clearly the insurance company cannot be expected to pay out for something that is not insured on the

EU gender price ban to raise womens insurance costs

Women Driver Car Insurance

New European rules have come into force banning insurers from charging different rates based on gender (Kayser Baird) It is generally accepted that women have lower car insurance premiums because statistically they have less accidents than men. In March 2011 a European Court of Justice ruled that it was sexual discrimination to charge people different premiums on the basis of gender alone. The insurance industry was given time to prepare for the change but the changes have now come into effect and women will see their premiums go up by up to 40%, while men could see their premiums coming down by an estimated 10%. Could the same thing happen to the South African insurance industry? Insurance companies here do use gender as a

Over the limit? Get chauffeured home for free with Kayser Baird’s Santam Personal Policy

Kayser Baird Designated Driver by Santam

Kayser Baird introduces the Home-Drive service to its Santam personal policy holders. Our clients can dial a toll free number and be chauffeured home with their vehicles if they find themselves over the legal limit. The service is offered in conjunction with Europ Assistance South Africa and is a complimentary benefit of our Santam Personal Policy. This service is limited to six call-outs a year and is available to Santam clients within 50kms of the city centers of Johannesburg, Pretoria, Nelspruit, Polokwane, Durban, East London, George, Cape Town and Bloemfontein. For trips further that 50km Europ Assistance will bill at R9 per additional kilometer. Our clients can also book additional trips through Europ Assistance at a discounted rate. Up to 5 passengers can