Value added products (Optional Additional Products)
There are various other products called Value added products available to a transport contractor or business. We will outline a couple of them but the list is by no means exhaustive, there is a lot more available! Please contact one of our consultants to discuss these and other exciting value added products.
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Additional products available:
- Business All Risks
- Credit Shortfall cover
- Deposit protector
- Recovery and Cross Border Towing
- Personal Accident cover for drivers
Business All Risks
Goods and valuables that will be covered under the Business All Risk section can include the following:
- Driver’s cellphone
- GPS tracking system in the truck
- Any extras specified on the truck eg. A bullbar or after-market side mirrors
- Any other valuables that is not part of the truck
Credit Shortfall cover
In the event that the insured’s vehicle is involved in an accident and the extent of the damage results in the vehicle being written off or if the vehicle is stolen or hijacked and not recovered the company will pay the difference between the settlement amount paid and the statutory settlement balance with the bank that financed the deal up to certain pre-defined maximums.
Deposit Protector
Where the insurance company declares the vehicle to be a write off or total loss or if the vehicle is stolen or hijacked and not recovered by the claim settlement date, the insurance company will pay an amount of 10% of the insured value to the client as a deposit on his next truck or trailer, subject to certain maximums.
Recovery and Cross Border towing
One of the biggest concerns facing any transport company doing cross border work is the issue of towing a vehicle after an accident situation. General policy wordings used by the major truck insurers will include the following wordings under the defined events section:
Defined events
Loss of or damage to any vehicle described in the schedule and its accessories and spare parts whilst there on, provided that:
Repatriation (outside the RSA’s Borders).
The policy covers vehicles in terms of the territorial limits whilst vehicles are travelling outside the borders of the RSA subject to the following exceptions (including exceptions to sub–section A):
- Any parts stripped from the vehicle whilst left unguarded and / or unattended at the scene of an accident or whilst in transit back to the RSA.
- All and any imposed duties, customs, charges, bribes, release fees or stamps.
- Towing and recovery costs.
- If following an accident the insured vehicle is not returned to the RSA and it is declared by the company to be a constructive total loss outside the RSA.
In other words, they will pay for the damages to the vehicle but it is the insured’s responsibility to get the damaged vehicle back to South-Africa and the towing charges obviously for his own account. These amounts can be truly astronomical because of the lack of competition and infrastructure in our neighbouring countries. In South-Africa you get a lot of companies competing for the same business where in other SADC countries you might struggle to find one company able to assist. It is the insured’s responsibility to get his damaged vehicle back to the nearest and closest South-African border post from where the insurance company or broker would normally organise for a towing vehicle to tow the damaged vehicle from the border post to the nearest repairer, all of this for the insurance company’s account.
For this specific region we have a unique product available called “Recovery and Cross Border Towing” which a client can add to his truck insurance policy for an additional amount of premium monthly. This will then provide an amount that may be used for paying of such towing services in other countries up to a maximum of R 50 000.
Personal Accident cover for drivers
This section will cover the insured, all drivers and co-drivers against death or disability. If the insured’s truck is involved in an accident, the driver could suffer serious injuries which can result in a permanent disability or even death of the driver. A personal accident insurance policy will pay out a certain pre-defined amount to the owner of the policy so that he can then distribute the money as he/she sees fit.
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