module 4 vehicles - santam · 2019-12-06 · module 4 vehicles yes. it is a car. and this is...

MODULE 4 VEHICLES

Yes. It is a car.And this is insurance.Simple, understandable, no-mystery insurance.

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Copyright ©Santam (Pty) Ltd. 2011 Course code: ASSESS-SPP2

CASE STUDYSECTION VEHICLES

MODULE INTRODUCTIONMr X owns a couple of vehicles. Since he is not sure about how he should insure the vehicles, he will gather information on the type of cover the policy offers in terms of Section Vehicles.

You will also be asked to assist him with the type of cover he should take out for his vehicles.

Lastly, it will be expected from you to complete the application form following on the information available to you.

MODULE OBJECTIVEThe goal of this module is to evaluate your knowledge of the following aspects with regard to vehicle insurance:

• The answering of general questions on the policy cover and underwriting; and

• The completion of the application form in terms of Section Vehicles of the Santam’s personal policy.

TASK 1On your visit to Mr X, he asks you to clear up the following:

Motivate your answers with the relevant facts throughout to qualify for the maximum allocation of marks as indicated per question.

QUESTION 1At first, Mr X wants to know which type of vehicles may be insured in terms of Santam’s personal policy.

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QUESTION 2Mr X would also like to know which type of cover is provided by Section Vehicles. (Mention at least three types of cover.)

3

QUESTION 3Mr X wants to know more about the various types of purpose for use, which could be insured in terms of Section Vehicles. Mention and describe every purpose of use.

6

QUESTION 4All the vehicles Mr X owns have fitted security systems. If it is not a requirement, will he receive a rebate for it?

1

QUESTION 5Mr X believes in having tools and basic parts in every vehicle. Nobody knows when bad luck hits you. He would like to know if these tools and spare parts are covered automatically and if he has to insure it as optional. If he has to, in terms of which section should it be insured?

2

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QUESTION 6All the vehicles have a radio and CD player. Will this be covered automatically in terms of the policy or should it be insured optionally? Give full details of the options.

3

QUESTION 7Some of the vehicles of Mr. X are still subject to hire purchase. He wants to know if the Santam’s personal policy provides for the outstanding amount on the postponed sales agreement.

2

QUESTION 8Mr. X would also like to know if Santam’s personal policy uses a no-claims bonus system. If so, explain the concept to him comprehensively.

3

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QUESTION 9If the vehicle is insured under the Vehicle section, does the insured automatically enjoy cover for vehicle liability or must the Vehicle section be extended?

1

QUESTION 10Mr X enquires if he is willing to be his own insurer for damage to his vehicle or if he can only take out liability insurance for damage based on the use of the vehicle?

1

QUESTION 11Discuss completely what type of liability can occur here and in terms of which section will it be covered?

2

TOTAL 29

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TASK 2Underwrite the cover you will offer for each on of the following vehicles: (If the photographs are not clear, you can view it on the CD – photographs 75, 80, 82, 83 and 85.)

Vehicle: Toyota Conquest 1300

Registration number: CA1001

VI number: 12345678910

Engine number: ABC 12345

Chassis number: CH 12345

Year of production: 1983

Driver: Mr X’ son at college

Registered owner: Mr X

Area: Bloemfontein

Value: R10 000 (No hire purchase agreement on the vehicle)

Details

• Mr. X’s son uses this vehicle at his college.

• The vehicle has a Raptor (VESA approved gearlever lock).

• A JVC radio/CD player with four speakers to the value of R2 500 was also installed in the car.

• During the evening, this vehicle is parked in an open parking area in the front of the boarding house.

• This vehicle was purchased three years ago. The radio/CD player had been stolen from the vehicle four times during the past three years.

• Mr X urges that his son should not be indicated as the only nominated driver on the policy. Mr X is afraid that his son’s friends will drive the vehicle without his knowledge/approval.

• Mr X will not, apart from the radio/CD player, specify any other accessories or take out any other type of cover.

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Underwriting: (Can vehicle be insured/radio and CD player/no claim bonus etc.)

2

Cover (Type of cover recommended)

2

Requirements

2

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Vehicle: Yamaha Scooter X50


Registration number: CA 1002

Driver: Mr. X’s daughter who lives with him

Registered owner: Mr. X’s daughter

Area: Cape Town

Value: R5 000 (no hire purchase agreement applies to the scooter)

Details

• Mr X’ daughter who is at school and lives with him, uses the scooter. This scooter is mainly used for transporting her to and from school. During the evening, it is kept in the yard behind a locked gate and under a lean-to.

• This scooter was bought brand new two years ago. No claim with regard to the scooter has been made.

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Underwriting: (Can vehicle be insured/radio and CD player/no claim bonus etc.)

1


1

Requirements

1

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Vehicle: Toyota Prado


VI number: 7878787878

Engine number: TPA 12345

Chassis number: CH 678910


Driver: Mr X and his wife

Registered owner: Mr X

Area: Cape Town

Value: R350 000 (Hire purchase from XYZ Bank Cape Town – hire purchase number: 112233)

Details

• This is the family car. Only Mr. X and his wife drive this vehicle.

• This vehicle is not at all used for business purposes. Once a month it is used on a 4x4 course.

• The vehicle was issued with a standard immobiliser/alarm system, as well as a Becker radio/CD player.

• Mr. X has installed a tracking system in the vehicle.

• During the evenings, this vehicle is parked in the garage at the risk address.

• This vehicle was bought three years ago. It was a demonstration model. To date, no claims have been received with regard to this vehicle.

• Mr. X requires the following additional cover:

- Difference between market value and hire purchase

- Car tools and parts to the value of R5 000

- Car-hire in the event of total and partial loss

- Waiver of excess

- Mr. and Mrs. X should be indicated on the policy as the only nominated drivers.

- Their respective identity numbers are 530115 0001 000 and 551210 0000 000.

- The career of Mrs. X could be classified as an entrepreneur.

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Underwriting: (Can vehicle be insured/type of use/cover for radio and CD player/nominated drivers/no-claim bonus, etc.)

2


2

Requirements

2

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Vehicle: Smart Car


VI number: 45454545

Engine number: SMT12345

Chassis number: SMCH 223344


Driver: Mr. X and any of his agents

Registered owner: Mr. X Properties CC

Area: Cape Town

Value: R100 000 (Hire purchase from XYZ Bank Cape Town – hire purchase number: 10001000)

Details

• This vehicle is registered in the name of Mr. X Properties CC. Mr. X mainly drives the vehicle, but it may also be driven by any of his agents.

• The vehicle is issued as standard with an immobiliser/alarm system as well as a radio/CD player (make not known).

• During the evening, this vehicle is parked on the pavement in front of the risk address.

• This vehicle was purchased two years ago. Two months ago another car collided with this car.

• Mr. X requires the following additional/specified cover:

- Car-hire in the event of total and partial loss

- Cover for radio/CD player to the value of R3 000

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Underwriting: Can vehicle be insured/type of use/cover for radio and CD player/no-claim bonus, etc.)

1


0

Requirements

0

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Vehicle: Isuzu KB 250 Bakkie


VI number: 555552222

Engine number: KB 112233

Chassis number: KBCH667788


Driver: Mrs. X

Registered owner: Mrs. X

Area: Cape Town

Value: R130 000 (Hire purchase from XYZ Bank Cape Town –hire purchase number: 2000002)

Details

• Mrs. X mainly uses this vehicle. She needs a light delivery vehicle (LDV) to transport the carpets, which she is selling from her home.

• The vehicle has a Raptor (VESA approved gearlever lock) as well as a factory installed immobiliser.

• The radio in the bakkie is a Sonyo radio/type and is factory fitted.

• During the evening, the vehicle is parked in the driveway of the risk address.

• Mrs. X should be indicated on the policy as the only nominated driver.

• This vehicle was purchased as second hand two years ago. Mrs. X has had four claims with regard to this vehicle:

- Two with regard to accident damage and two with regard to damage to the canopy where the motive was mainly to steal the Persian carpets and ornaments.

- The last claim with regard to accident damage has just been finalised.

• Mr. X needs cover for car-hire in the event of total or partial loss.

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Underwriting: (Can the vehicle be insured/type of use/cover for radio and CD player/no-claim bonus, etc.)

Cover(Type of cover recommended)

Requirements

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TASK 3Complete the application form following on the above-mentioned information. Remember that any requirements you may require following on your inspection will have to be indicated clearly on the application form.

The allocation of the no-claim bonus should be based on the statistics available to you.

Task 3 Complete the application form following on the above-mentioned information. Remember that any requirements you may require following on your inspection will have to be indicated clearly on the application form. The allocation of the no-claim bonus should be based on the statistics available to you. VEHICLES Details of Car/LDV Car 1 Car 2 Registered owner Nominated driver(s) (3 only, incl. applicant) Is the applicant a nominated driver? Details of nominated driver(s) (if applicant is also a nominated driver ………………………………………………. …………………………………………… only two further names may be added) 1) Surname, initials and title ………………………………………………. …………………………………………… Gender ………………………………………………. …………………………………………… Date of birth ………………………………………………. …………………………………………… Marital status ……………………………………………… …………………………………………… ID number Occupation ………………………………………………. …………………………………………… 2) Surname, initials and title …………………………………………………. ………………………………………….... Gender ………………………………………………... …………………………………………… Date of birth ..………………………………………………. …………………………………………… Marital status ………………………………………………… …………………………………………… ID number Occupation …………………………………………………………... ……………………………………………

Applicant Spouse Financially dependant

child Applicant Spouse

Financially dependant

child

Yes No Yes No

Yes No Yes No

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VEHICLES (continued) Year of manufacture ……………………………………………… …………………………………………………….. Make (e.g. Toyota) ……………………………………………… …………………………………………………….. Model (e.g. Corolla 1.6.GL) ……………………………………………… …………………………………………………….. Vin number ……………………………………………… …………………………………………………….. Engine number ……………………………………………… …………………………………………………….. Chassis number ……………………………………………… …………………………………………………….. Class of use Registration number ……………………………………………… …………………………………………………….. Type of cover (For third party only cover see vehicle liability) Sum insured of car/LDV No-claim bonus (in years) Additional value of improvements (extras) Type of improvements (e.g. alloy Wheels, sunroof, etc.) ……………………………………………… …………………………………………………….. Is the vehicle equipped with the following: VESA approved immobiliser VESA approved gear-lever lock Tracking Device Type: ………………. Type: ………… Is the vehicle kept in a lock-up garage Overnight? Voluntary excess (cannot be taken with “waiver of excess”) Specified accessories (e.g. radio or Telephone) Make and Model …………………………………………………….. …………………………………………………… Difference in market value/hire Purchase Tools, spare parts and travel accessories Car-hire – Comprehensive (Total loss and partial damage) Car-hire – Limited Total loss only) Vehicle breakdown service Waiver of excess (only basic and Theft/hijack) (Cannot be taken with “voluntary excess”) Hire-purchase owner …………………………………………………….. …………………………………………………… Name of branch …………………………………………………….. …………………………………………………… Hire-purchase number …………………………………………………….. ……………………………………………………

Endorsements

Premium

Private Business Farming Private Business Farming

0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7

Comprehensive Comprehensive

Third party, fire and theft Third party, fire and theft

Theft excluded Theft excluded

R R

R R

Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No Sum insured:R Sum ins. R

Yes No Yes No Sum insured:R

Yes No Yes No

Yes No Yes No Sum insured:R

Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No

Sum ins. R

Sum ins. R

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Vehicles (continued) Details of Car/LDV Car 1 Car 2 Registered owner Nominated driver (s) (3 only, including the applicant) Is the applicant a nominated driver? Details of nominated driver (s) (if applicant is also nominated driver, only two further names may be added) 1) Surname, initials and title ……………………………………………………………. ……………………………………………… Gender …………………………………………………………... ……………………………………………………… Date of birth …………………………………………………………. ……………………………………………………… Marital status …………………………………………………………… ……………………………………………………… ID number Occupation …………………………………………………………… ……………………………………………………… 2) Surname, initials and title …………………………………………………………… ……………………………………………………… Gender …………………………………………………………… ……………………………………………………… Date of birth ……………………………………………………………. ……………………………………………………… Marital status ……………………………………………………………. ……………………………………………………… ID number Occupation ………………………………………………………………... ………………………………………………………

Applicant Spouse Financially dependant Applicant Spouse Financially

dependant child

Yes No Yes No

Yes No Yes No

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VEHICLES (continued) Year of manufacture ……………………………………………… …………………………………………………….. Make (e.g. Toyota) ……………………………………………… …………………………………………………….. Model (e.g. Corolla 1.6.GL) ……………………………………………… …………………………………………………….. Vin number ……………………………………………… …………………………………………………….. Engine number ……………………………………………… …………………………………………………….. Chassis number ……………………………………………… …………………………………………………….. Class of use Registration number ……………………………………………… …………………………………………………….. Type of cover (For third party only cover see vehicle liability) Sum insured of car/LDV No-claim bonus (in years) Additional value of improvements (extras) Type of improvements (e.g. alloy Wheels, sunroof, etc.) ……………………………………………… …………………………………………………….. Is the vehicle equipped with the following: VESA approved immobiliser VESA approved gear-lever lock Tracking Device Type: ………………. Type: ………… Is the vehicle kept in a lock-up garage Overnight? Voluntary excess (cannot be taken with “waiver of excess”) Specified accessories (e.g. radio or Telephone) Make and Model …………………………………………………….. …………………………………………………… Difference in market value/hire Purchase Tools, spare parts and travel accessories Car-hire – Comprehensive (Total loss and partial damage) Car-hire – Limited Total loss only) Vehicle breakdown service Waiver of excess (only basic and Theft/hijack) (Cannot be taken with “voluntary excess”) Hire-purchase owner …………………………………………………….. …………………………………………………… Name of branch …………………………………………………….. …………………………………………………… Hire-purchase number …………………………………………………….. ……………………………………………………

Endorsements

Premium

Private Business Farming Private Business Farming

0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7



Theft excluded Theft excluded

R R

R R

Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No Sum insured:R Sum insured:R


Yes No Yes No


Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No

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VEHICLES (continued) Details of caravan/trailer Caravan/Trailer 1 Caravan/Trailer 2 Registered owner Type Make (e.g. Jurgens) ………………………………………………………. …………………………………………………………… Year of manufacture ………………………………………………………. …………………………………………………………… Registration number …………………………………………………….. …………………………………………………………… Sum insured of caravan /trailer No -claim bonus (in years) Contents of caravan Hire purchase owner ………………………………………………………. …………………………………………………………… Name of branch ………………………………………………………. …………………………………………………………… Hire-purchase number ………………………………………………………. ……………………………………………………………

Endorsements

Premium

Details of motorcycle Motorcycle 1 Motorcycle 1

Registered owner

Type Type of cover For third party only cover see (vehicle liability) Year of manufacture …………………………………………........ …………………………………………….... Make (e.g. Honda) …………………………………………........ …………………………………………….... Model (e.g. Goldwing) …………………………………………........ …………………………………………….... Registration number …………………………………………........ …………………………………………….... Sum insured of motorcycle No -claim bonus (in years) Hire purchase owner …………………………………………….. …………………………………………………. Name of branch …………………………………………….. …………………………………………………. Hire-purchase number …………………………………………….. ………………………………………………….

Endorse ments

Premium

Applicant Spouse Other Applicant Spouse Other

Caravan Trailer Caravan Trailer

0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7

Applicant Spouse Dependant child Applicant Spouse Dependant

child Private Business Private Business

0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7

NOT APPLICABLE




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SUMMARYFollowing on the information available to you with regard to this section:

• How will you classify the insured and risk? Describe it in your own words.

• Categorise the insured and risk by making a cross in one of the following blocks.

Low frequency/high risk Low risk/high frequency No potential risk

module 4 vehicles - santam · 2019-12-06 · module 4 vehicles yes. it is a car. and this is...

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