7/30/2019 Renewal Letter - Mpala Oscar

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Credsure House, 69 Sam Mujoma Ave,

Harare Tel: 04 - 706101/738944

MPALA OSCAR1399 MAINWAY MEADOWSWATERFALLSHARARE

Dear Sir/Madam

RE: RENEWAL NOTICE COVER LETTER

This letter is an invitation to renewal of your policy, which expires in the periodSeptember/October (See Schedule Attached). Kindly provide us with your renewalinstructions before the expiry date to ensure continuity of cover. Enclosed is yourschedule for updating and please note we have updated all third party liability limitsto reasonable amounts but if you feel otherwise you are free to amend them. Thelimits have been revised upwards having taken into account the number of highvalued vehicles moving on our roads today.

Third Party Liability LimitsThird party liability limits should be set at sufficient levels to cover costs of damageto other persons property as well as death, injury and / or related costs should yoube responsible for the accident. Should the third party claim exceed your policylimit; you will be responsible for any amount in excess of this limit. Please note wehave already factored in the increase of $2,000.

Sums Insured Vis- a Vis Average ConditionPlease ensure that values (sums insured) represent current market values formovable property and replacement/ rebuilding cost for non-movable property at alltimes. If sums insured are less than the current market values or replacement costs,you will be considered your own insurer for the difference between the sum insuredand the market value. Below is an example of how a claim would be settled in theevent of underinsurance:

Correct Market Value USD$20,000Vehicle insured for USD$10,000Repair Costs Claimable USD$1,000

7/30/2019 Renewal Letter - Mpala Oscar

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Claim Settlement Calculations:

Sum Insured plus 20% inflation Provision ($12,000)_______________________________________________ X Loss ($1,000)

Market Value ($20,000)

Settlement Amount: $600.00 less partial loss excess of 10% = $500.00.Therefore shortfall is $400 excluding 10% excess.

As you can see if you are underinsured your policy will not provide you with fullbenefits as you will be considered your own insurer for the difference between suminsured and the replacement value or market value (as appropriate) and theinsurance company will pay a ratable proportion of the loss. If you are over-insuredyour policy will only pay you up to the current market value or replacement cost ofthe asset lost. Hence the need to ensure that your sums insured are adequate. Ifyou need assistance on valuations of your assets please contact the undersignedand an evaluation will be arranged. Premiums can be paid termly or annually. Wenow await your renewal instructions.

Thanking You for Credsure.

I ChibvuriUnderwriting Departmentichibvuri@credsure.co.zw