auto electrical specialist module 4 - santam4 vespa 125cc scooter 2002 2 r 5 000 c _____ subsection...
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Auto Electrical Specialist Module 4
Copyright © Santam Ltd. 2007 Course code: ASSESS123 / Module 4
Copyright © Santam Ltd. 2007 2 Course code: ASSESS123 /Module4
Auto Electrical Specialist
Module Introduction One of your current clients, Motolek, has been on SA Insurers’ books for the past six months. Motolek contacts you with regard to their insurance portfolio. They tell you that they are now, since the acquisition of the business, financially fit to extend their insurance cover. After the acquisition, they only addressed the basic insurance needs, mainly the items which at that stage were prescribed by the financial institutions. The insured will approach you about various aspects of the sections/extensions he needs cover for. You will have to do a review of the premises before informing him on the underwriting measures involved and giving him a quotation.
Take note that you should rather focus on the various types of cover and underwriting measures than tariffing or premium. The following sections are relevant to this case study: Section: General Section: Fire Section: Office Contents Section: Theft Section: Business All Risks Section: Public Liability Section: Electronic Equipment Section: Motor Section: Motor Traders - Internal Risks Section: Motor Traders - External Risks
Copyright © Santam Ltd. 2007 3 Course code: ASSESS123 /Module4
If you use the following guidelines in relation to this risk, you will be able to complete this module effortlessly. 1. Firstly, read the module thoroughly. 2. Then, complete the questions of Task 1. 3. Study the content of Task 2.
• Complete the inspection reports. • Complete the quotation and recommendation/requirement form. • Complete the application form, as well as the underwriting/clause
form. 4. Now, complete the questions of Task 3. Module objective The goal of this module is to evaluate your knowledge of the following aspects of a workshop risk: • General questions asked when the insured wants to extend his current insurance
portfolio; • Risk evaluation with the necessary recommendations; • Completion of an application form and the application of underwriting principles; and • The answering of questions on possible changes in the risk.
Copyright © Santam Ltd. 2007 4 Course code: ASSESS123 /Module4
Motivate your answers with the relevant facts throughout to qualify for the maximum allocation of marks as indicated per question. Case study Task 1 As soon as the current owners of Motolek acquired the business, they arranged for cover by SA Insurers. The cover was only for the goods under hire-purchase from various financial institutions. Their cash flow was limited and they were forced to insure only the most necessary. In the mean time, they have grown their business considerably and are now able to extend their insurance to provide in all their insurance needs. During your visit to the client at his premises the following questions were posed to you: Question 1 For the past six months and due to the high investment costs, Mr M took out only the most necessary insurance cover. He wants to know if he will have to pay the full premium for the rest of the year for the additional cover he is going to take out. ______________________________________________________________________________
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Question 2 Motolek has a lot of machinery and equipment which comprises partly of electronic components. They want to know if they have to insure it in terms of Section Fire or Section Electronic Equipment. What is your suggestion? Since Section Machinery Breakdown was not covered in the SMK 3 course, you may leave this section out. _______________________________________________________________________________________________
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1
Copyright © Santam Ltd. 2007 5 Course code: ASSESS123 /Module4
Question 3 The insured wants to know if our policy provides cover for vehicles which have been repaired and are parked outside the building. These vehicles are parked in the parking area, directly in front of the building which forms part of the insured’s premises. When the parking area is full, they are parked in the street. Explain comprehensively to the insured when these vehicles will be covered and under which section(s). ______________________________________________________________________________
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Question 4 Due to the nature of their business they often use hand tools. They take it along with them when they work off the premises. Will our policy cover the tools when it is used elsewhere? If it does, under which section should it be insured? Provide comprehensive advice to the insured. ______________________________________________________________________________
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Copyright © Santam Ltd. 2007 6 Course code: ASSESS123 /Module4
Question 5 The client wants to know more about liability. Suppose they have worked on one of their client’s vehicles and damage to the vehicle occurred after it has been returned to the client. Is it insurable? ______________________________________________________________________________
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Question 6 Mr M tells you that they deliver vehicles to clients after it has been repaired. He wants to know whether the vehicles will enjoy cover when it is driven or towed at the back of a trailer. (Refer to the visual material where the insured was busy loading a motorcycle onto a trailer.) _______________________________________________________________________________
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Question 7 Mr M would like to know how the sum insured for Section Motor Traders – Internal Risks and Motor Traders – External Risks is determined. _______________________________________________________________________________
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Copyright © Santam Ltd. 2007 7 Course code: ASSESS123 /Module4
Question 8
Mr M would like to know how the premium for Section Motor Traders – Internal Risks and Motor Traders – External Risks is determined and if it is similar to standard motor tariffs.
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Question 9 Motolek offers a standby service and often has to work on other premises. Mr M would like to know if he enjoys cover when any damage to clients’ vehicles are caused on other premises (e.g. at the client’s house or work premises). ______________________________________________________________________________
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Question 10 Mr M tells you about a bad experience he had years ago when he was an employee at a garage. One of their client’s vehicles fell off the motor hoist. He wants to know if events like this will be covered by our policy and what he should do to obtain this type of cover.
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TOTAL
4
3
2
30
Copyright © Santam Ltd. 2007 8 Course code: ASSESS123 /Module4
SA VERSEKERINGSMAATSKAPPY INSURANCE COMPANY Reference Mister M 49 Factory Street Stikland 7530 Policy number 123746389 Dear Sir It is our pleasure to include with this a copy of your policy. Yours sincerely Head of Underwriting
Copyright © Santam Ltd. 2007 9 Course code: ASSESS123 /Module4
SCHEDULE
Insurer: SA Insurance Company Product: Multimark III Insured: Motolek 49 Factory Street Stikland 7530 Business: Auto Electrical Specialists Agency: ABC Brokers Agency number: 00002 Manner of payment: Monthly debit order in advance Institution: National Bank Date of payment: 1st day of the month Insured period: 1 March 2004 to 31 March 2004
Any consecutive period of one calendar month to which the company agrees to renew the policy or any section of it.
Office: Stikland Signed at Stikland on 10 March 2004. On behalf of the insurer
SA Versekeringsmaatskappy
Insurance Company
Copyright © Santam Ltd. 2007 10 Course code: ASSESS123 /Module4
SCHEDULE SUMMARY
Effective sections Additional/Refund premium
Renewal premium Monthly Annually
Fire 0,00 R 116,00 R 1392,00 Theft 0,00 R 33,33 R 400,00 Electronic Equipment 0,00 R 20,83 R 250,00 Motor 0,00 R 2 041,66 R 24 500,00 Public Liability 0,00 R 62,50 R 750,00 Policy fee R 10,00 R 120,00 Total premium (14% VAT included) R 2 284,33 R 27 412,00 After inception of cover, this schedule will become a tax invoice for the payment of the amount due (VAT number: 1234). Prescription date: 1 March 2005 Policy number: 123746389 Insured: Motolek Effective date: 01/03/2004 ___________________________________________________________________ Endorsements applicable to monthly policy (Endorsements attached to policy and which form part of it) Section Reference General 001 Premium adjustment clause Fire N.A. Theft Electronic Equipment N.A. Motor 115 Premium adjustment clause Public Liability (Claims made basis) N.A. ___________________________________________________________________
SA Versekeringsmaatskappy
Insurance Company
Copyright © Santam Ltd. 2007 11 Course code: ASSESS123 /Module4
General provision If, in the schedule of this policy, the sum insured, limit of indemnity or compensation is: • left blank or has no monetary amount stipulated against it; • reflected as nil or not applicable or not covered or no indemnity extended; it means the defined event or circumstance shown in the schedule is not covered by the policy.
Copyright © Santam Ltd. 2007 12 Course code: ASSESS123 /Module4
SCHEDULE SECTION FIRE
Policy number: 123746389 Insured: Motolek Transaction number: Effective date: 01/03/04 ___________________________________________________________________ Stand no. Details of premises/Item description Sum insured/ Indemnity limit
1 49 Factory Street, Stikland Machinery R348 000 Construction: Standard Occupation: Motor electrician Additional perils Extension: Earthquake Extension: Special perils Extension: Malicious damage ___________________________________________________________________ Optional extensions applicable N.A. ___________________________________________________________________
SA Versekeringsmaatskappy
Insurance Company
Copyright © Santam Ltd. 2007 13 Course code: ASSESS123 /Module4
Memorandums Machinery on hire-purchase at National Bank and insured in terms of this section: Motor hoist (model HW 2500) R220 000 2 x ABC mechanical lathes (model S100) R 80 000 (R40 000 each) Bosch drill-press (model Kw100) R 20 000 4 x Bosch portable drills (model K999) R 4 000 (R1 000 each) 4 x Makita angle grinders (model AG100) R 4 000 (R1 000 each) 4 x sets of Gedore socket spanners R 10 000 (R2 500 each) 4 x sets of Gedore hand tools R 10 000 (R2 500 each) ___________________________________________________________________ Optional extensions not applicable Extension: Riot and strike Extension: Leakage Extension: Subsidence and landslip Clause: Stock declaration conditions Extension: Escalator clause Clause: Disposal of salvage
Copyright © Santam Ltd. 2007 14 Course code: ASSESS123 /Module4
SCHEDULE
SECTION THEFT Policy number: 123746389 Insured: Motolek Transaction number: Effective date: 03/03/04 ___________________________________________________________________ Stand no. Details of premises/Item description Sum insured/ Indemnity limit 1 49 Factory Street, Stikland
First loss cover R5 000 Excess 10% of claim min R500
Construction: Standard _____________________________________________________________________________________________ Optional extensions applicable Keys and locks: R2 500 __________________________________________________________________________________ Memorandums Memo 1 – Excess applicable to theft claims amounts to 10% of claim with a minimum of R500. __________________________________________________________________________________ Optional extensions not applicable Buildings – Increased limit
SA Versekeringsmaatskappy
Insurance Company
Copyright © Santam Ltd. 2007 15 Course code: ASSESS123 /Module4
SCHEDULE SECTION ELECTRONIC EQUIPMENT
Policy number: 123746389 Insured: Motolek Transaction number: Effective date: 01/03/04 ________________________________________________________________
Details of premises/Item description Sum insured/ Indemnity limit
PENTIUM IV COMPUTER AND MAG 796 MONITOR (17DM) R7 200 (Serial number 22uw 123) First amount payable 10% of claim min R250 1 x HP LASERJET PRINTER R2 150 (Serial number 2233Bl 123) First amount payable 10% of claim min R250 _______________________________________________________________________________ Optional extension applicable N.A. _________________________________________________________________ Memorandums N.A. ___________________________________________________________________ Optional extension not applicable Telkom access lines Incompatibility cover
SA Versekeringsmaatskappy
Insurance Company
Copyright © Santam Ltd. 2007 16 Course code: ASSESS123 /Module4
SCHEDULE SECTION MOTOR
(SPECIFIED BASIS) Policy number: 123746389 Insured: Motolek Transaction number: Effective date: 03/03/04 ___________________________________________________________________ Item no. Make/Model Description Year CFG Sum insured Cover
1 Ford Ranger LDV 2002 2 R115 000 C 2 Fiat Uno P/V 1995 2 R 35 000 C 3 Venter Trailer 1998 2 R 25 000 C 4 Vespa 125cc Scooter 2002 2 R 5 000 C _____________________________________________________________________________________________ Subsection B Indemnity limit With respect to any event that occurs directly or indirectly because of a fire or explosion. R2 500 000 Liability to passengers R2 500 000 Any other event and the total of (a), (b), and (c) R2 500 000
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Cover A = Fire and Theft B = Balance of third party, Fire and Theft C = Comprehensive D = Third party only E = Balance of third party and Fire
SA Versekeringsmaatskappy
Insurance Company
Copyright © Santam Ltd. 2007 17 Course code: ASSESS123 /Module4
Optional extensions applicable Extension: loss of keys R 5 000 First amount payable - R100 Extension: windscreen R 2 000 First amount payable - 25% MIN R250 Liability limits (theft of radios) R 2 500 Extension: Contingent liability R2 500 000 Extension: Parking facilities and movement of third party vehicles R2 500 000 __________________________________________________________________________________ Memorandums Memo 1 Loss of use is included as attached. Memo 3 Up to R100 000 5% of claim min R1 000 R100 000 – R150 000 5% of claim min R1 500 R150 000 – R250 000 5% of claim min R2 000 R 250 000 and more 5% of claim min R3 500 Optional extensions not applicable Riot and strike Wreckage removal Unauthorised passengers Credit shortfall
Copyright © Santam Ltd. 2007 18 Course code: ASSESS123 /Module4
SCHEDULE
SECTION PUBLIC LIABILITY
Policy number: 123746389 Insured: Motolek Transaction number: Effective date: 01/03/04 ___________________________________________________________________ Item no. Description Indemnity limit
1 Liability Claims made basis R1 000 000 Excess 5% of claim min R1 000/ maximum R25 000 Retrospective date: 01/03/2004
Optional extensions applicable Extension: Legal defence costs R 10 000 Optional extensions not applicable Extension: Products liability Extension: Defective workmanship liability Extension: EC Liability Extension: Wrongful arrest and defamation __________________________________________________________________________________
SA Versekeringsmaatskappy
Insurance Company
Copyright © Santam Ltd. 2007 19 Course code: ASSESS123 /Module4
You inform him that you have to do a review before you will be able to quote on the other three sections and/or the increased amounts. Use the following site layouts and visual material to evaluate the risk. GROUND LEVEL
SLIDING GATE
IRON
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Copyright © Santam Ltd. 2007 20 Course code: ASSESS123 /Module4
UPPER LEVEL
VIEW TO PARTS (STORE)
TIMBER PLATFORM
OFFICE OFFICE
OFFICE BOARDROOM
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Copyright © Santam Ltd. 2007 21 Course code: ASSESS123 /Module4
Inspection reports Complete the following inspection reports to determine the risk. The sections on which no information was made available in the visual material, site layout or other information pieces have already been filled-in or marked as “N.A.”. Take note: Where “N.A.” is marked on the inspection report, it does not necessarily imply that it is “not applicable” to all similar risks. It is only “not applicable” to this specific risk/case study.
FIRE SURVEY REPORT
TO: ………………………………………….…….…. FROM: …………………………………………… BRANCH: ………………………………………….… SURVEYOR: ……………………….……...…… DEPARTMENT: ………………………………..…… SURVEY NUMBER: ………………..…………. REFERENCE: …………………………………….… DATE: …………………….………….…………. DATE: ………………………………………………. Name
Addess
Occupation
Area class ( ) Retention class: Construction class:
GENERAL DESCRIPTION
Locality Industrial Commercial Closed shopping centre
Residential Other
Details (if other)
Construction – Roof Reinforced concrete Corrugated iron r Tiles
Thatch Saw tooth Details other
Box guttering Condition of gutters Good Poor
Sky lights Plastic Fibre glass
Walls Reinforced concrete Brick I.B.R.
Details other Is bilding older than 10 yrs? YES NO r Number of floors Number of basements
Construction of floors Concrete Timber
Condition of premises Good Average Poor
Adjacent exposure Low Average High
Rivers/Canals Debris Block-up
Detail (type of exposure)
Adjacent risk communicates Yes No r
Seperation by
Security Chain link fence 2m Wall Access control
Street Lights r Floor lights 24 hr Security
Electric perimeter fence
S.A.I.D.S.A. Corporate Alarm Other alarm – name
Copyright © Santam Ltd. 2007 22 Course code: ASSESS123 /Module4
Electrical Municipal supply Eskom Supply
Contact Breakers Condition appears to be- Good r Otherwise
Flexible extenstion leads noted YES NO r
Are plug points overloaded? YES NO r
Process (if major process involved, attach on separate sheet)
None Storage/Retail/Distribution only
Heat Process/Welding/Grinding Flammable liquids Quantity 2
Flammable liquid store – brick under concrete slab YES NO r
LP Gas installation ons site r Number of cylinders 2 Size …………………KG
Is wall block manifold in good condition YES r NO
All goods stored on racking or pallets Ja Nee If ‘Yes’, height of floor ……………..mm
Construction of racking Timber Steel
Storage Neat, tidy and well organised Ja Nee
Risk congested Disorganised Untidy
Spray painting (detail) Deep fat cooking
Grease extraction filters clean YES NO
Fire Protection
Local Fire Brigade ( ) would attend any ourbreak of fire Fire Station is = ………8……………kms from risk
Appliances on Site – hand held YES NO
Size Number of extinguishes
Service dates marked YES r NO Last date 7/2002
30m Hose Reels YES Number of None
Have staff been trained in the use of Fire Extinguishers YES NO
Easy Access to appliances YES NO Hydrant ring main YES NO
Automatic Sprinklers YES NO
A.S.I.B. Certificate Valid YES NO
Sprinkler Detail – contact number
Edition ……………….…………………………Supply …….…………………………………………Units ………….…………………….. Hazard…………………………………………Stack Height ………………………………………… Requirements (A.S.I.B.) YES NO Smoke Detectors YES NO
Water Supply Municipal r Bore Hole Dam
Copyright © Santam Ltd. 2007 23 Course code: ASSESS123 /Module4
LOSS HISTORY
Date 15 October 2003
Amount – R8 550-80
CauseBurglary Remedial action Install alarm with armed reaction unit. MANAGEMENT & HOUSEKEEPING
General Standard Good Average Poor
Waste Disposal Good Average Poor
Smoking Permitted YES NO r
If no, were used smoking materials noted YES NO r
Are no smoking signs on display? YES NO
Specified rules for smoking (i.e. smoke areas, etc.)
Are flammable materials located against or between buildings YES NO r
MAXIMUM PROBABLE LOSS (M.P.L.)
All under one roof with free internal communication MPL 100% YES NO
Risk separated by fire break wall or detached buildings YES NO
If in your opinion less han 100% supply site plan
Are buildings less than 5 metres apart? YES NO
Seperation of buildings
OPINION OF RISK
Good r Average Poor
Risk acceptable YES NO
Moral Hazard Good r Poor
Inception Hazard High Medium Low
Spread Hazard High Medium Low
Fire Load High Medium Low
FURTHER COMMENT
If yes, see attached
Risk improvement requirements attached? YES r NO
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Surveyor
……………………15/12/2004…………………………
Date
Copyright © Santam Ltd. 2007 24 Course code: ASSESS123 /Module4
Comment and give recommendations following on the inspection reports ______________________________________________________________________________
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Copyright © Santam Ltd. 2007 25 Course code: ASSESS123 /Module4
Insurable items As previously mentioned, the insured took cover only for goods under hire-purchase, as compelled by the financial institutions involved. Mr M provides you with the following list of items to insure now that he is financially able to: (He doesn’t want any cover for riot and strike.) Rest of machinery and equipment R 450 000 Stock in trade (parts) R 500 000 Electronic Equipment 1 x 22” CTX Computer screen S/N OU7-75300583 R 2 450 1 x 133 Pentium 148 MB Computer S/N 011171126 R 4 300 1 x GEM Electronic lathe R 100 000 (electronic component is 35% of lathe) 2 x Electrical battery testing system R 40 000 (electronic component is 75% of system) Cover for theft R 30 000 Hand tools and equipment taken along when technicians are on standby or are repairing vehicles at the premises of the client. R 10 000
(replacement value) (limit per item R2 000)
Increase general public liability limit to R2 000 000 Defective workmanship R 100 000 Internal Risks (comprehensive cover) R 30 000 (Article I) Additional cover: only one motor hoist @ R50 per hoist External Risks (Third party, Fire and Theft) R 100 000 (Article I) No extensions – only basic cover, including passenger liability and demonstration risks (Salaries and wages R120 000 p/m) Cover for vehicles falling off the hoist R 100 000 The policy should be extended to include the above-mentioned from 1 October 2004.
Copyright © Santam Ltd. 2007 26 Course code: ASSESS123 /Module4
Quotation on total insured package (including existing insured items)
Section Sum insured Tariff Premium
Fire 0,400%
Electronic Equipment
3%
Theft 8%
Business All Risks
12%
Public Liability
R 1 400
Motor Traders – Internal Risks
0,819%
Motor Traders – External Risks
3%
Motor (Specified basis)
See list - R24 500
Total (VAT included)
Copyright © Santam Ltd. 2007 27 Course code: ASSESS123 /Module4
Recommendations/requirements ______________________________________________________________________________
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Copyright © Santam Ltd. 2007 28 Course code: ASSESS123 /Module4
Application form Complete the application form for Sections Business All Risks, Motor Traders – Internal Risks and Motor Traders – External Risks with reference to the last-mentioned information. It is not necessary to use existing clause numbers. Create your own clause numbers for the purpose of this exercise and list it at the bottom of the application form (if necessary). Example “Clause 1” – Burglar alarm condition with armed response unit
Copyright © Santam Ltd. 2007 29 Course code: ASSESS123 /Module4
BUSINESS ALL RISKS
Policy number and name (for amendment purpose) [Mark applicable choice with a . Areas marked with grey MUST ALWAYS be completed]
GENERAL SECTION DETAILS
Additional CPC limit: ( exceeding R10 000 included) R ……………………………… Premium: R…………………………………… Increased cost of working limit R ……………………………… Premium: R…………………………………… Riot and strike Premium: R……………………………………
ITEM DETAILS
Item Item Item Item
New
Am
ende
d
Can
cel
New
Am
ende
d
Can
cel
New
Am
ende
d
Can
cel
New
Am
ende
d
Can
cel
For an existing policy/item, please indicate:
From: / / / / / / / /
Location * 1 2 3 1 2 3 1 2 3 1 2 3 Premises (only location 1):
Postal code (lcoation 2 & 3)
Specified article Yes No Yes No Yes No Yes No
Limit any one item R R R R
Property description:
Make
Model
Serial/Identification
Sum insured:
R R R R
Com
plet
e fo
r ce
ssio
n no
ted
on it
em
Cession/HP
Cession holder: Cession-/HP no.:
Expiry date: / / / / / / / /
First Amount Payable: 10 % Of claim % Of claim % Of claim % Of claim
Minimum R500 Minimum R Minimum R Minimum R
Basic and extensions Item Item Item Item
Basic cover Premium
R R R R
Replacement condition Yes No Yes No Yes No Yes No
Alarm condition Yes No Yes No Yes No Yes No
* Location
1 = Only while in a specific building
2 = In any building
3 = In and outside any building
Yes No
Copyright © Santam Ltd. 2007 30 Course code: ASSESS123 /Module4
OFFICE USE ONLY Item Item Item Item
Type of article code:
Slip number:
Bordereau number
Total Fac %
Reinsurer
Reinsurer’s policy number
Reinsurance %
Contact Person
Survey number
Survey data
Surveyor
Clauses applicable (Complete according to inspection report)
Number % Amount Number % Amount
Notes:
Copyright © Santam Ltd. 2007 31 Course code: ASSESS123 /Module4
MOTOR TRADERS INTERNAL RISKS
Policy number and name (for amendment purpose) [Mark applicable choice with a . Areas marked with grey MUST ALWAYS be completed]
GENERAL SECTION DETAILS For an existing policy please indicate: New Amend Cancel from: .…/….…/…….. Type of cover: Comprehensive (C) Situation postal code: Limit: Article I Article II Increase to: Basic Premium: Rebate: No claim bonus: Salaries/Wages: Extensions Premium Work away from premises Yes No R Riot and strike Yes No R Car Hoists Yes No R Premises First amount payable:
Description Excess Basic R % of value % % of claim 10 %
OFFICE USE ONLY Item Item Item Item Slip number: Excess of loss
Bordereau number Priority R R R R
Participating company Reinsurers policy number
Participation R R R R Contact person
Clauses applicable Number % Amount Number % Amount
Notes:
R
R2 500 000 R
R
10 %
R
Copyright © Santam Ltd. 2007 32 Course code: ASSESS123 /Module4
MOTOR TRADERS EXTERNAL RISKS
Policy number and name (for amendment purpose) [Mark applicable choice with a . Areas marked with grey MUST ALWAYS be completed]
GENERAL SECTION DETAILS
For an existing policy please indicate: New Amend Cancel from: .…/….…/…….. Type of cover: Comprehensive (C) Situation postal code: Limit: Article I Article II Increase to: Basic premium: Rebate: Salaries/Wages: Extensions
Limit Premie
Windscreen Yes No R
Social events Yes No R
Names:
Unauthorised use by employees Yes No R
Legal liability of passengers Yes No R
Riot and strike Yes No R
Loss of use Yes No R R
Legal liability of passengers (motor cycles only) Yes No R R
Driving of motorcycles Yes No R
Modifications
Exclude own vehicles Yes No
Exclude passengers liability Yes No
Exclude demonstation risk Yes No
Cover limited to Motorcycles only Yes No
Cover special type vehicles only Yes No
First amount payable:
Description Excess
Basic R
% of value 10 %
% of claim %
R
R2 500 000 R
R
10 %
R
Copyright © Santam Ltd. 2007 33 Course code: ASSESS123 /Module4
OFFICE USE ONLY Item Item Item Item
Slip number: Excess of loss
Bordereau number
Priority R R R R
Participating company
Reinsurers policy number
Participation R R R R
Contact person
Clauses applicable Number % Amount Number % Amount
Notes:
Copyright © Santam Ltd. 2007 34 Course code: ASSESS123 /Module4
Task 3 More questions
The insured wants to know what will happen if:
1. For example, a Motolek staff member borrows the company’s LDV over a weekend to
remove garden refuse or to transport something of this sort in his personal capacity. If this vehicle is involved in a collision, will it be covered in terms of the policy?
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2. An employee takes a client’s vehicle, which is on the premises to be repaired, to his home without the client’s permission and is involved in a collision.
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3. Some of the employees move their clients’ vehicles on the premises (for example from the motor hoist to the parking area) and a vehicle is damaged or collides with another vehicle or equipment.
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2
2
Copyright © Santam Ltd. 2007 35 Course code: ASSESS123 /Module4
4. Electronic equipment is being repaired after a claim by a repairer and he charges
additional costs for speedy delivery and overtime work. _____________________________________________________________________________
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5. The engine of a client’s vehicle seizes, after the vehicle has been repaired and returned. After closer investigation, the insured discovered that a part which had been replaced has a defective design. The manufacturer confirms this. The insured wants to know if such an event will be covered in terms of the policy. What will you tell the insured?
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TOTAL
2
1
10