text starts here - qm.discovery.co.za

Discovery Insure Training guide

Discovery Ltd. registration number: 1999/007789/06. Companies in the group are authorised financial services providers.

Short-term insurance by Discovery

Training guide Version19_ August 2021

of 249

Confidential

Introduction to the training manual

The purpose of this document

Disclaimer This document is for training and information only and must not be seen as advice as defined and

contemplated in the Financial Advisory and Intermediary Services Act, 37 of 2002.

Although Discovery has taken reasonable care to ensure the content, material and data are accurate and

secure; Discovery does not warrant or guarantee the correctness or accuracy of these amounts or data.

Reliance on them is at your own risk.

All examples and case studies in this document are for illustrative purposes only and the product specific

technical documents must always be referenced and relied on for technical product details.

Discovery will not be liable for any actions taken or advice given by any person based on the correctness of

this information.

This guide was designed and developed by the Discovery Institute of Training and may not be amended,

reproduced, distributed or published without the prior written consent of the Discovery Institute of Training.

This Training Guide is designed to assist you through the learning process as you become

familiar with Discovery Insure. There is a focus on the Discovery Insure product, Vitality Drive

and all the elements of the processes, specifically new business, SmartAdvice, servicing,

integration, commission and claims. As part of the preparation for our training on Discovery

Insure, start with the ‘Introduction to short-term insurance’ training guide that covers the

basics of short-term insurance. The ‘Introduction to short-term insurance’ training guide will

include the basics of short-term insurance for each particular section, e.g. the basics of

short-term insurance for motor vehicle cover, the basics of short-term insurance for

household contents cover etc. In conjunction with this Training Guide, there is a

Presentation Pack, workbook, the Discovery Insure Plan Guide, financial technical guide and

annexures. It is advisable to make notes as you go through the presentation.




of 249

Confidential

Table of contents Introduction to the training manual .............................................................................................................................. 2

The purpose of this document .................................................................................................................................. 2

Table of contents ........................................................................................................................................................... 3

Key to the symbols used in this guide ........................................................................................................................... 9

Icons........................................................................................................................................................................... 9

Discovery Insure Plan suite .......................................................................................................................................... 10

Our plan options are: ............................................................................................................................................... 10

Different rewards programmes ................................................................................................................................... 10

What is a rewards programme? .............................................................................................................................. 10

Different rewards programmes available in the market ......................................................................................... 11

What is Vitality Drive? ................................................................................................................................................. 13

Vitality Drive reward options................................................................................................................................... 13

Vitality Drive status ..................................................................................................................................................... 13

Diamond Vitality Drive status .................................................................................................................................. 13

Clients Can Earn Up to 1 600 Vitality Drive Points Every Month................................................................................. 14

Clients can earn up to 1 100 Vitality Drive points a month for improving their driving behaviour ........................ 14

Clients earn up to 350 Vitality Drive points a month for improving their knowledge and awareness ................... 19

When client’s Vitality Drive points will reflect ........................................................................................................ 24

Vitality Drive Fuel Cash Back Option ........................................................................................................................... 25

Fuel cash back .......................................................................................................................................................... 25

Three simple steps to start earning fuel cash back ................................................................................................. 25

The Insure Funder Account (IFA) – clients can double their fuel cash back by having it paid into their Insure Funder Account ....................................................................................................................................................... 27

Perfect driving days ................................................................................................................................................. 31

Young Adult benefit ................................................................................................................................................. 32

Drive Your Discount Reward Option ........................................................................................................................... 34

Joining Discovery Insure with Drive your Discount ................................................................................................. 34

Clients transitioning between Drive your Discount and fuel cash back .................................................................. 36

Rewards and Benefits Available On All Plans And ....................................................................................................... 37

Reward Options (Fuel Cash Back and Drive Your Discount) .................................................................................... 37

Drive Me benefits .................................................................................................................................................... 44

Vitality Drive 65+ ..................................................................................................................................................... 45

Vehicle Safety Features ............................................................................................................................................... 46

Impact Alert ............................................................................................................................................................. 46

Vehicle panic button ................................................................................................................................................ 47




of 249

Confidential

Find my vehicles ...................................................................................................................................................... 47

Weather warnings ................................................................................................................................................... 48

Crowd Search: Intelligent technology to keep drivers safe ..................................................................................... 48

Standalone DQ-Track safety features ...................................................................................................................... 48

Vitality Drive Telematics Devices................................................................................................................................. 49

Benefits and features of Vitality Drive telematics devices ...................................................................................... 49

How do we use a client’s Vitality Drive telematics device information? ................................................................ 49

Telematics device options ....................................................................................................................................... 50

When will driving data reflect ................................................................................................................................. 55

Cancelling cover or switching vehicles .................................................................................................................... 55

Testing the telematics device .................................................................................................................................. 56

Ctrack terms and conditions .................................................................................................................................... 56

Responsibility restrictions ....................................................................................................................................... 57

Vitality Drive For Motorcycles ..................................................................................................................................... 57

If the motorcycle is insured with other vehicles ..................................................................................................... 57

If the motorcycle is the only vehicle insured........................................................................................................... 58

Vitality Drive programme rewards and safety features for motorcycles ................................................................ 58

Vitality Drive Example ................................................................................................................................................. 59

Client selects the Vitality Drive programme ............................................................................................................ 59

Discovery’s motor insurance ....................................................................................................................................... 62

Important terms you need to understand .............................................................................................................. 62

Discovery’s motor insurance ................................................................................................................................... 63

How is a vehicle covered for loss or damage? ........................................................................................................ 66

What happens when the clients claim? .................................................................................................................. 67

Extra equipment cover ............................................................................................................................................ 67

How are 4x4 vehicles covered? ............................................................................................................................... 68

Wheel and tyre cover .............................................................................................................................................. 68

Driver options – Who is allowed to drive the vehicle?............................................................................................ 69

Selecting the correct driver on the policy ............................................................................................................... 69

Vehicle usage ........................................................................................................................................................... 69

Excess structures ..................................................................................................................................................... 70

Benefits included ..................................................................................................................................................... 72

Optional benefits ..................................................................................................................................................... 77

General .................................................................................................................................................................... 89

Legal claims.............................................................................................................................................................. 95

Understanding claim rejections ............................................................................................................................... 97




of 249

Confidential

The repair process ................................................................................................................................................... 99

SmartAdvice........................................................................................................................................................... 101

Risk Management .................................................................................................................................................. 103

Household contents .............................................................................................................................................. 107

Discovery’s Household Contents insurance .......................................................................................................... 108

Benefits Included ................................................................................................................................................... 117

Optional benefits ................................................................................................................................................... 122

Exclusions .............................................................................................................................................................. 123

General .................................................................................................................................................................. 124

What every client should know ............................................................................................................................. 125

Discovery Insure Claims process ........................................................................................................................... 126

Understanding claim rejections ................................................................................................................................. 127

Buildings insurance, covers ................................................................................................................................... 131


Summary of Plan exclusions on Essential Plan ...................................................................................................... 139

Exclusions .............................................................................................................................................................. 140

General ...................................................................................................................................................................... 141

Electric fence ......................................................................................................................................................... 141

Understanding how water damage is covered ..................................................................................................... 142

What every client needs to know .......................................................................................................................... 144

Discovery Insure Claims process ............................................................................................................................... 146

Understanding claim rejections ............................................................................................................................. 147

Building Claims: Reason why claims get rejected. ................................................................................................ 147

The settlement process ......................................................................................................................................... 147

SmartAdvice............................................................................................................................................................... 148

Portable possessions cover ....................................................................................................................................... 150

Important terms you need to understand ............................................................................................................ 150

Understanding portable possessions cover .......................................................................................................... 150

Discovery Insure’s portable possessions cover ..................................................................................................... 154

What items are covered? ...................................................................................................................................... 154

Features of the Discovery Insure portable possessions policy .............................................................................. 155

My Jeweller ............................................................................................................................................................ 157

Theft from unattended vehicles ............................................................................................................................ 158

Upgrade to the latest Apple or Samsung phone every year ................................................................................. 158

Safe deposit box benefit ........................................................................................................................................ 158

Dual insurance ....................................................................................................................................................... 159




of 249

Confidential

Screen protector benefit ....................................................................................................................................... 160

General information .................................................................................................................................................. 161

Understanding laptop cover .................................................................................................................................. 161

What every client should know ................................................................................................................................. 161

Clients need to be aware of the following ............................................................................................................ 161

General clothing and personal effects .................................................................................................................. 161

Specified items ...................................................................................................................................................... 161

The claims process ................................................................................................................................................. 162

Portable possessions claims: reasons why claims are rejected ............................................................................ 163

Exclusions .............................................................................................................................................................. 164

SmartAdvice............................................................................................................................................................... 164

Discovery’s Watercraft Insurance ............................................................................................................................. 167

Important terms you need to understand ............................................................................................................ 167

What is Watercraft Insurance?.............................................................................................................................. 167

Events that are covered......................................................................................................................................... 168

Benefits included ................................................................................................................................................... 169


Conditions for cover .............................................................................................................................................. 171

Exclusions .............................................................................................................................................................. 171

What every client should know ............................................................................................................................. 173

Discovery Insure claims process ................................................................................................................................ 174

Understanding claim rejections ............................................................................................................................. 174

SmartAdvice............................................................................................................................................................... 175

Discovery’s Personal liability insurance ..................................................................................................................... 177

What is Personal liability insurance? ..................................................................................................................... 177

Benefits included ................................................................................................................................................... 179

Exclusions .............................................................................................................................................................. 181

SmartAdvice............................................................................................................................................................... 182

Services ...................................................................................................................................................................... 184

Roadside assistance when an insured vehicle breaks down ................................................................................. 184

Direction Assist ...................................................................................................................................................... 186

Trip Monitor .......................................................................................................................................................... 186

HomeAssist ............................................................................................................................................................ 186

HomeProtector ...................................................................................................................................................... 186

FastTrack claims..................................................................................................................................................... 186

Smartphone app .................................................................................................................................................... 187




of 249

Confidential

The services and benefits provided through SmartClaims include ....................................................................... 188

Auto claims ............................................................................................................................................................ 188

Legal support benefit: ........................................................................................................................................... 189

Insure quote analysis (IQA) ................................................................................................................................... 190

SmartAdvice........................................................................................................................................................... 190

Integration ................................................................................................................................................................. 191

Select clients .......................................................................................................................................................... 192

Summary of Integration ........................................................................................................................................ 193

Quoting and Tools ..................................................................................................................................................... 195

SmartAdvice........................................................................................................................................................... 195

FAZ ......................................................................................................................................................................... 195

Ai Quote ................................................................................................................................................................. 196

Other tools for you to use ..................................................................................................................................... 197

Commission ............................................................................................................................................................... 201

Overview ................................................................................................................................................................ 201

Binder agreements ................................................................................................................................................ 203

Claims ........................................................................................................................................................................ 204

Why claims are not paid ........................................................................................................................................ 204

The type of cover is not available .......................................................................................................................... 204

The asset was not insured ..................................................................................................................................... 205

The policy terms and conditions have been breached.......................................................................................... 205

Events not covered ................................................................................................................................................ 206

Conditions that influence the outcome of the claim ............................................................................................ 206

General claims ....................................................................................................................................................... 207

Towing and storage process .................................................................................................................................. 209

Towing procedure after repatriation .................................................................................................................... 209

Windscreen and window glass .............................................................................................................................. 209

Notifying the police ............................................................................................................................................... 209

Claims preparation costs ....................................................................................................................................... 209

Settlement of the claim ......................................................................................................................................... 210

Legal proceedings in the client’s name ................................................................................................................. 210

Discovery Insure functions on the Discovery Smartphone apps ........................................................................... 210

Proof of ownership ................................................................................................................................................ 210

Online Vault ........................................................................................................................................................... 211

How to log a claim ..................................................................................................................................................... 211

Payments ................................................................................................................................................................... 213




of 249

Confidential

What can the client insure on the Discovery Insure Plan? .................................................................................... 213

When does the cover start? .................................................................................................................................. 213

To which period do the client premiums relate? .................................................................................................. 213

How long will the plan be valid for? ...................................................................................................................... 213

What if I make changes to the client’s cover? ...................................................................................................... 214

What if the client cancels the Plan? ...................................................................................................................... 214

Debit order dates................................................................................................................................................... 214

Gap in cover ........................................................................................................................................................... 215

Credit control rules ................................................................................................................................................ 218

SASRIA payment .................................................................................................................................................... 219

Calculating a pro rata premium for additions ....................................................................................................... 219

Calculating a pro rata premium on removals ........................................................................................................ 219

Consent .................................................................................................................................................................. 219

Competitor Analysis .................................................................................................................................................. 222

Discovery Insure competitor comparison ............................................................................................................. 222

Like-for-like comparison ............................................................................................................................................ 223

Discovery Insure set out four objectives to achieve with the launch of their product ......................................... 223

Discovery’s competitive advantage ....................................................................................................................... 224

Objection Handling .................................................................................................................................................... 225

Client objections you may face .............................................................................................................................. 225

Objection handling: Key focus areas ...................................................................................................................... 225

Steps in the Objection handling process ............................................................................................................... 226

Key selling features .................................................................................................................................................... 229

The key areas of risk that are crucial to mention to clients .................................................................................. 231

Important terms and glossary ................................................................................................................................... 234

References ................................................................................................................................................................. 249

Other documents used: ............................................................................................................................................. 249




of 249

Confidential

Key to the symbols used in this guide

Icons

Features of the product

Benefit to the client

Technical detail of the product

Did you know? (Additional information)

Word wealth (definition)

Note (important information to take note of)

Example

Tools

Reminder about important information




of 249

Confidential

Discovery Insure Plan suite

Discovery Insure provides comprehensive car and home insurance with unique rewards and safety features.

Clients can select one of four Plans depending on their needs.

Our entire Plan range offers comprehensive cover, safety features and rewards for good driving, while also

catering for different client profiles through innovative, optional benefit features to suit every need.

Our plan options are: ▪ Discovery Insure Classic Plan

▪ Discovery Insure Purple Plan

▪ Discovery Insure Essential Plan

The Classic Plan The Classic Plan is ideal for clients who are financially prudent and value the features, benefits and cover

limits provided. Clients can earn up to 50% of their fuel and Gautrain spend back in rewards every month for

driving well.

The Purple Plan The Purple Plan is ideal for more high-net worth clients who require insurance for assets amounting to more

than R5 million and value personalised service. Clients can earn up to 50% of their fuel and Gautrain spend

back in rewards every month for driving well. Other benefits include Multi Vehicle benefit, wider (all Risks)

cover and cellphone upgrades yearly.

The Essential Plan The Essential Plan is ideal for price-sensitive clients who require at least R250 000 in household contents

cover. Essential Plan clients who are good drivers, can earn up 25% of their fuel and Gautrain spend back in

rewards every month for driving well.

Different rewards programmes

What is a rewards programme? A rewards programme is a customised, strategically-aligned recognition and rewards system that helps

nurture a positive culture, and boosts client engagement, and ultimately, gives the financial adviser a

competitive advantage.

A rewards programme is designed to: ▪ Build a strategically focused, high-performance product through tailored client motivation solutions.

▪ Align clients to strategy, define goals, set targets, engage interest, recognise and reward achievements.

▪ Attract, retain and develop better clients.

The approach should be multi-dimensional, strategically aligned and measurable. This ensures that each

client is able to get the best results that are tailored to his unique requirements.




of 249

Confidential

Different rewards programmes available in the market There are a variety of rewards programmes out there, especially in the short-term insurance industry.

Here are a few examples:

▪ Santam: Multiplex

▪ Mutual and Federal: Allsure

▪ Alexander Forbes: Priceless

▪ CIB: Vertex

▪ Alexander Forbes: Envoy

▪ Echelon

▪ Momentum: Multiply




of 249

Confidential

Vitality Drive

Vitality Drive




of 249

Confidential

What is Vitality Drive? Vitality Drive is Discovery Insure’s unique driver behaviour programme that rewards clients for driving well. Vitality Drive uses the latest motor vehicle telematics technology to collect information about your clients’ driving behaviour, such as acceleration, braking, cornering, speed, night-time driving, distance driven and cellphone use. Clients have the option to join Vitality Drive when they take out comprehensive insurance on their motor vehicle or motorcycle. Vitality Drive is activated at plan level and costs R85 a month on the Purple and Classic Plans and R68 a month on the Essential Plan. Once a planholder selects the Vitality Drive programme, every primary driver on their plan will automatically be subscribed to Vitality Drive and the monthly fee is payable for each driver.

Vitality Drive reward options Vitality Drive has two reward options to choose from. Your clients will be able to join the Vitality Drive fuel cash back option and earn up to R800 fuel cash back each month and have access to other fuel-related benefits. Alternatively, they can join Vitality Drive through Drive your Discount and get an upfront and ongoing premium discount of up to 20%, based on how well they drive. Plans cannot have a combination of the Drive your Discount reward option and the fuel cash back reward option. One of the reward options would need to be chosen for all primary drivers on the plan. Both Vitality Drive reward options are available on all of our plans.

Vitality Drive status Clients can earn up to 1 600 Vitality Drive points a month. Clients earn Vitality Drive points by driving well, improving their driving behaviour, knowledge and awareness, and by making sure their vehicles are safe to drive. At the end of each month, clients will receive a Vitality Drive status based on their Vitality Drive points. The more Vitality Drive points they earn, the higher their Vitality Drive status and the more rewards they receive. We apply actuarial algorithms to the driving data to develop a scientific measure of drive. This provides an easy way for clients to understand how well they drive and how they can improve.

Vitality Drive status and Vitality Drive points needed Vitality Drive status Vitality Drive points needed Blue 0 to 299

Bronze 300 to 599

Silver 600 to 999

Gold 1 000 to 1 600

Diamond Earn a monthly average of 1 000 or more Vitality Drive points and remain claim free for 12 consecutive months.

Diamond Vitality Drive status Clients can achieve Diamond Vitality Drive status by earning a monthly average of 1 000 or more Vitality Drive points and remaining claim-free for 12 months. Each primary driver can achieve and maintain this status monthly.




of 249

Confidential

Technical details

▪ In the first year of their plan, clients can achieve Diamond status after their ninth month of cover, provided they are claims free since starting their plan, have an average monthly score of at least 1 000 Vitality Drive points, and at least seven months of driving behaviour data.

▪ If a client is a Diamond status driver and they claim, their status will change to Gold status in the following month. For the next 12 months, the highest status the client can achieve is Gold. As soon as the client is claim free for 12 months, they can qualify for Diamond status again, provided their 12-month rolling average Vitality Drive points is at least 1 000.

▪ If a client is a Diamond Vitality Drive status driver and remain claim free but they get less than a total of 12 000 Vitality Drive points for the 12-month period before the fuel cash back calculation date, their status will be changed to Gold or below, depending on their actual month-end Vitality Drive points. As soon as the client gets a total of 12 000 or more Vitality Drive points for the 12-month period before the fuel cash back calculation date, they will move to Diamond status again.

▪ The definition of ‘claims free’ follows the Vitality Drive points definition with regards to what is and what is not considered a claim. Therefore, vehicle glass and SOS claims do not affect a client’s claim-free years.

Clients can earn up to 1 600 Vitality Drive points every month Clients can earn up to 1 600 Vitality Drive points by improving their driving behaviour, completing knowledge and awareness activities and ensuring their vehicle is safe to drive. The better clients drive and the more point-earning activities they complete, the more Vitality Drive points they earn and the more rewards they get.

DRIVING BEHAVIOUR Up to 1 100 points

Driving Profile Up to 750 points Distance points Up to 100 points Night-time driving points Up to 150 points Claim-free years Up to 100 points

KNOWLEDGE AND AWARENESS Up to 350 points

Online driver assessment 50 points Driving courses 150 points EyeGym Up to 150 points

VEHICLE SAFETY Up to 150 points

Passing the Tiger Wheel & tyre Annual Multipoint check

100 points

Service history up to date 50 points

Clients can earn up to 1 100 Vitality Drive points a month for improving their

driving behaviour When clients join Vitality Drive, they must install a Vitality Drive telematics device so that we can measure their driving behaviour and reward them for driving well. Clients have the option of installing either the Vitality Drive Sensor or the Crowd Search Sensor in their vehicle. These devices are smartphone-enabled devices that are made up of a sensor, which is installed in the vehicle, and a smartphone app on Android or iOS phones. The smartphone must be compatible to the sensor to allow the app and the sensor to link to each other to measure client’s driving behaviour. If clients do not have a compatible smartphone to have the Vitality Drive Sensor or Crowd Search Sensor, they must install the standalone DQ-Track in their vehicle. If clients install the standalone DQ-Track, we will not be able to measure their cellphone use. This means that the maximum driving behaviour points they can earn each month




of 249

Confidential

is 950 Vitality Drive points, as opposed to the total 1 100 Vitality Drive points with the other devices, as explained below. If clients do not install a telematics device, they will not earn Vitality Drive points for their driving behaviour.

Driving Profile – Up to 750 Vitality Drive points 1. At the start of each day, clients will be allocated 25 Drive points if they have the Vitality Drive Sensor or Crowd

Search Sensor. Clients with the standalone DQ-Track will be allocated 20 Drive points at the start of each day since cellphone use can’t be measured for this device.

2. Clients must maintain their daily Drive points balance by driving well throughout the day by: ▪ Accelerating smoothly ▪ Cornering smoothly ▪ Driving within the speed limit ▪ Not using their cellphone ▪ Braking smoothly Harsh driving events will reduce clients’ daily Drive points balance, based on the type and severity of the driving event, according to the table below:

Behaviour Points basis Severity Drive points deducted Acceleration Braking Cornering

For each event Mild Moderate Severe

2 3 4

Speeding For every 10 seconds 10 to 15 km/h 16 to 25 km/h More than 25 km/h

1 2 4

Cellphone use For every 10 seconds - 1

Clients with the standalone DQ-Track will have three Drive points deducted for each acceleration, braking and cornering event during each trip. Points will be deducted for speeding in line with the above table. Since we cannot measure cellphone use if the client has the standalone DQ-Track, no points will be deducted for this. 03 | At the end of each day, clients remaining Drive points will bank towards their Driving Profile. Over a month, clients’ Driving Profile builds up to 750 Vitality Drive points, as per the below:

x

25 Drive points allocated per day

Driving behaviour over 30 days

= Vitality Drive points




of 249

Confidential

Technical Details

▪ Since we cannot measure cellphone use for clients with the standalone DQ-Track, they will receive 20 daily Drive points a day. They can earn up to 600 Drive points from their daily driving behaviours towards their Driving Profile each month (20 Drive points x 30 days = 600 Vitality Drive points).

▪ The maximum Vitality Drive points clients with the standalone DQ-Track can earn each month is 1 450. This is because their Driving Profile builds up to a maximum of 600 Vitality Drive points. All other Vitality Drive point-earning activities are the same as the Vitality Drive Sensor.

▪ Clients’ minimum daily Drive points balance will be 0. Clients cannot have a negative Drive points balance, even if more than 25 (or 20, for standalone DQ-Track clients) Drive points are deducted for harsh driving events during the day.

▪ In months where there are 31 days, Drive points will contribute towards clients’ Driving Profile up to a maximum of 750 Vitality Drive points for clients with the Vitality Drive Sensor or 600 Vitality Drive points for clients with the standalone DQ-Track. Clients therefore have an extra day to maximise their Driving Profile.

▪ In February, we will allocate two bonus days of Drive points, equal to the client’s average daily Drive points over the past 30 days (or one bonus day when it is a leap year).

▪ If clients do not install a Vitality Drive telematics device in the beginning of the month, their Driving Profile will be pro-rated based on the remaining days of the month. For example, if the client gets their Vitality Drive Sensor mid-month, they will be able to earn a maximum of 375 Vitality Drive points (25 Drive points x 15 days) towards their Driving Profile.

▪ Where there is both a Vitality Drive Sensor and standalone DQ-Track in a single vehicle, all points will be based on the Vitality Drive Sensor only since this provides a more accurate measure of driving behaviour and awards clients with more Vitality Drive points for their cellphone use.

▪ Where the Vitality Drive Sensor is not working and the appropriate interventions have been logged to the Discovery Insure DQ-Track team, we will use the client’s standalone DQ-Track for scoring.

▪ Where a driver is listed as the primary driver of multiple vehicles the following rules will apply: ▪ Clients will receive a maximum of 25 Drive points each day if they have the Vitality Drive Sensor and

20 Drive points if they have the standalone DQ-Track. ▪ Driving events from all vehicles will be deducted from the daily Drive points allocation. This means

that if clients drive more than one vehicle on the same day Drive points will deducted based on their driving behaviour from all vehicles.

▪ Where multiple vehicles are driven at the same time, Drive points from all trips will be deducted from the clients daily Drive points allocation.

▪ Clients need to have a working device in all vehicles for which they are listed as a primary driver. ▪ Trips that are recorded and logged as passenger trips will be scored in the same way as other trips, with the

only difference being that clients will not be penalised for cellphone use for these trips. Note, we look at the number of times that clients select their trips as ‘Passenger trips’. If they do this excessively, their daily Drive points will be negatively affected because of cellphone use.

▪ Clients driving information will not be used in any way at claims stage other than to confirm the time and place of an incident. Clients may ask us to use the information to help prove that an insured third party was at fault.

▪ Client’s Driving Profile resets to zero at the beginning of every month.




of 249

Confidential

Clients will also be rewarded for no-drive days If clients do not drive for a full day, their Drive points balance for that day will be equivalent to the average of their daily Drive points balance over the past 30 days. This is an accurate predictor of what clients’ Drive points balance would have been, had they driven that day. Points for no-drive days will also bank towards clients’ Driving Profile.

Technical Details:

▪ Only the number of days in the past 30 days where driving behaviour was recorded will count when calculating clients 30-day average for no-drive days.

▪ Drivers who have less than seven days of driving data will receive a default score of 10 Drive points for no-drive days.

▪ Clients can earn an unlimited number of no-drive days if we are able to verify that they did not drive on that day:

▪ For the Vitality Drive Sensor or Crowd Search Sensor: the sensor and Discovery Insure app have synced and the client has uploaded trip information.

▪ For the standalone DQ-Track: the device is working. ▪ For no-drive days to count towards their monthly Driving Profile, clients must sync their Vitality Drive Sensor

to their Discovery Insure app and upload their trip information by the third day of the next month. For example, to get points for no-drive days for January’s cash back, clients must sync their Discovery Insure app with their Vitality Drive Sensor and upload their trip information by 3 February.

▪ However, for the Vitality Drive Sensor or Crowd Search Sensor, if clients do not sync their sensor and app or upload the trip information by the third day of the next month, then they will still receive points for no-drive days. These are considered unverified no-drive days as we don’t have trip information to verify if the client drove or not.

▪ We will only allocate a maximum of 30 unverified no-drive days within a six month rolling period. If clients have more than the maximum 30 days, they will not receive any Drive points for those days.

▪ If clients did drive on a day recorded as a no-drive day and their trips are not reflecting as a recorded trip, they must make sure that they upload their trip data. Clients may have selected to only upload their trip data when they are on Wi-Fi. If this is the case, clients must connect to Wi-Fi so that they can upload their latest trip information and we can record all of their trips. Please note that clients’ Drive points balance for the day may change to reflect the actual Drive points deducted during each trip and not an average of their Drive points balance that we have allocated to them for their no-drive day.

▪ If the client is the primary driver of more than one vehicle, to qualify for a no-drive day, none of their vehicles must have been driven on that day.

Points will also be deducted for uncovered trips An uncovered trip is when the Vitality Drive sensor or Crowd Search Sensor and the Discovery Insure app are not linked. Uncovered trips will reduce clients’ daily Drive points balance. Clients must make sure all the required settings are enabled and all permissions are accepted. Points will be deducted based on the length of the trip.

Length of trip Drive points deducted Less than 10 minutes 0

10 to 20 minutes 3

20 to 30 minutes 7

More than 30 minutes 10




of 249

Confidential

Monthly points – up to 250 Vitality Drive points

Distance points – up to 100 Vitality Drive points We look at the total number of kilometres driven over the past 30 days. The more time spent on the road, the higher the client’s risk of being involved in an accident. The less time clients spend driving, the higher their distance points.

Night-time driving points – up to 150 Vitality Drive points Clients should avoid driving at night, especially between 23:00 and 04:30. During these times, there is decreased visibility, it’s harder to focus and there are more impaired drivers are on the road. Points are calculated as the total night-time driving points of 150 less the sum of Vitality Drive points deducted for night-time driving over the past 30 days. Points are deducted for every minute driven between 23:00 and 04:30, based on the time as shown in the table.

Time Vitality Drive points deducted

23:00 to 00:00 1

00:00 to 01:00 2

01:00 to 02:00 3

02:00 to 03:00 3

03:00 to 04:00 2

04:00 to 04:30 1

Technical Details

▪ Distance points and night-time driving points make up the client’s Monthly points. ▪ Where the client has at least seven days of data but no driving data has been received in the last 30 days

because their Vitality Drive Sensor or Crowd Search Sensor and Discovery Insure app has not synced in the last 30 days, they will receive the default Monthly points of 165 Vitality Drive points.

▪ New Vitality Drive clients who have less than seven days of driving data will receive the default Monthly points of 165 Vitality Drive points.

▪ Clients will be able to view their actual Monthly points in the app as soon as they have at least seven days of driving data.

Claim-free years – up to 100 Vitality Drive points Clients who remain claim-free for two years will get 50 Vitality Drive points a month for the next 12 months or until they claim. If clients stay claim-free for three or more years, they will get 100 Vitality Drive points each month for the next 12 months or until they claim.

Technical Details

▪ Vehicle glass and SOS claims will not affect the client’s claim-free years. ▪ The maximum Vitality Drive points a client can earn in their first two years is 1 500 Vitality Drive points

(or 1 350 if they have the standalone DQ-Track), since no Vitality Drive points for claim-free years are available during the first two years.

▪ In their third year, the maximum Vitality Drive points clients can earn is 1 550 Vitality Drive points (or 1 400 if they have the standalone DQ-Track) since 50 Vitality Drive points are available for two claim-free years.




of 249

Confidential

Clients earn up to 350 Vitality Drive points a month for improving their knowledge and awareness

Online driver assessment – 50 Vitality Drive points Clients can improve their driving knowledge and awareness with our Online driver assessment to earn 50 Vitality Drive points each month for 12 months. The assessment consists of a series of multiple-choice questions that test the clients knowledge of the rules of the road and their general road safety awareness. Clients can access the assessment in the Discovery app or by logging in to www.discovery.co.za.

Driving courses – up to 150 Vitality Drive points Clients can either complete the Online driver training from the comfort of their home to earn 150 Vitality Drive points a month for 12 months or complete an advanced driving course for 150 Vitality Drive points a month for 24 months or complete the Refresher simulator course at the Discovery Driving Academy simulator course and earn 150 Vitality Drive points every month for 12 months. Points for this category will be capped at 150 Vitality Drive points. Driving courses are designed to teach clients critical defensive driving techniques to help them drive better and be safer on the road. The Online driver training Clients can log in to www.discovery.co.za and watch a series of six short video clips. Each clip is followed by an assessment with a pass mark of 80%. Clients can watch each video and complete the assessments as many times as they like. However, Vitality Drive points will be capped at 150 points, which clients will receive every month for 12 months. Clients need to complete and pass all six assessments to qualify for their Vitality Drive points. Points for the Online driver training should reflect within 48 hours of completing the course. The advanced driving courses Clients can complete a driving course with Volkswagen Driving Academy, BMW Driving Experience or Jaguar Land Rover Experience and earn up to 150 Vitality Drive points a month, for 24 months after completing the course. Each course is provided at special discounted rates to Discovery Insure Vitality Drive clients. For more details on course locations and costs, visit www.discovery.co.za. Points will reflect within 14 days of completing the course.

Volkswagen Driving Academy The Discovery Insure Safety Driving course is a full-day course which includes the following sections in the course: Skidpan session, defensive driving and hijack prevention. Skidpan session

In-depth theory session on safe driving including different types of skids, weight transfer and safety systems in the vehicles, collision avoidance and slalom. Clients will also learn about ABS emergency lane changes, ESC emergency lane change and braking without ABS. Defensive driving

An in-depth lecture on defensive driving, recognising of hazards, following and stopping distances and general road rules. Clients will get an understanding of how to conduct an exterior vehicle inspection, interior vehicle inspection, correct seating position and a driving evaluation (clients will receive an evaluation sheet after completing the driving evaluation).

Hijack prevention

An informative theory session that will cover hijack prevention tips, hijacking statistics, types of hijacking and prevention techniques. Clients will see a hijack prevention demonstration and learn how to safely remove themselves and other passengers (including babies and children) from the vehicle during a hijack situation. The course will also provide detailed information on vehicle jamming, tracking device and what to do if the client is hijacked. The Safety Driving course is a full-day course. Clients will earn 150 Vitality Drive points for completing this course. This course is offered in Gauteng only.

http://www.discovery.co.za/



BMW Driving Experience The Discovery Control Package covers a combination of the defensive driving and the collision avoidance and skid control courses. Module 1: Defensive driving

The Defensive driving course teaches clients to constantly evaluate the change in road conditions and to choose a course of action that enables them to minimise their risk. This course will give clients a greater awareness of the external factors that can influence situations on the road and teach them how to handle traffic problems safely. Clients can attend the morning or afternoon course. Clients will be tested during the course and if the instructors feel that the client needs to return, they will be notified when the course is complete. Although there is no additional cost involved to complete the test, clients will have to set aside the time to do it.

Module 2: Collision avoidance and skid control

This course is designed to improve the client’s skid control and collision-avoidance skills. BMW simulates several different types of skids on the wet skidpan and with practice, clients will begin to master the skills to deal with many emergency situations. On a steady gradient and under controlled conditions, the client’s growing confidence in handling the motor car will allow them to explore the limits of vehicle control. Clients will also learn hijack-prevention techniques and steps to follow in the event of the unexpected. Clients can attend a morning or afternoon course. This course is offered at the Zwartkops Raceway in Centurion.

Jaguar Land Rover Experience Jaguar Land Rover Experience teaches clients how to anticipate emergency situations on the road and negotiate them safely. Clients can also learn how to control their vehicle when they venture off-road. The Defensive driver training course An advanced driver is a person who drives to avoid accidents in spite of the actions of others or the presence of adverse conditions and who can take corrective measures to avoid an accident simply by searching, identifying, predicting, deciding, and executing their decisions before an incident occurs. This course includes practical on-road driving with an instructor carefully watching every manoeuvre. The Defensive driving training course will not only increase the client’s ability to anticipate emergency situations, it will teach them to handle these situations safely. Defensive driving principles include: vehicle orientation, potential hazards and threats, road hazards and vehicle positioning, road signs and legal actions, correct driving procedures and general on-road safety.

The Off-road introductory course This course is designed to introduce the participant to the world of 4x4 driving, covering basic four-wheel drive systems and the latest electronic aids fitted to four-wheel drive vehicles. A 45-minute theory session will also cover basic vehicle setup as well as handling vehicles when venturing into off-road conditions. The following driving elements will be covered in theory and during a three-hour practical drive: hill ascents and descents, traversing a side slope, driving through ditches and rutted tracks, and deep water wading. All major road surfaces will be discussed with general driving techniques.




of 249

Confidential

BMW Rider Academy The better equipped clients are to ride their motorcycle, the safer and more enjoyable their rides will be. BMW has developed special rider training courses which offer motorcyclists just what they need to improve their skills. The Refresher course

This course is perfect to equip riders who plan to purchase, or recently purchased a motorcycle with the correct riding skills and techniques to improve their safety. Riders who need to improve their confidence on the open road will also benefit from this course. The course consists of theory which covers safety aspects, defensive riding tips on various scenarios encountered on our roads and practical lessons. All training takes place in a controlled environment. This course is offered at the Zwartkops Raceway in Centurion.

The Novice course: Introduction to

motorcycling

This course is designed to help clients learn the essential elements every rider must know to #MakeLifeARide. First in theory then in practice, in a controlled environment, under the watchful eye of a coach. This course is suitable for new riders with limited or no riding experience. This intensive course provides theoretical and practical training, covering all the essential elements of riding that prepare new riders for the road. A BMW G 310 R training motorcycle, helmet and gloves can be provided. All practical training takes place in a controlled environment. No driving licence required and all attendees must be able to ride a bicycle before enrolling for the novice course.

Discovery Driving Academy Driving simulators place the driver in an artificial environment which is made to mimic an actual driving experience. The simulator itself mimics a real car and includes an accelerator, brake, clutch, gearbox, indicators and windscreen wipers. The simulators will teach new drivers the basics of driving in a safe environment with the Licence Prep course and will refresh the skills of experienced drivers with the Refresher course. The state-of-the-art driving simulators are in line with the Discovery Insure vision of creating a nation of better drivers. Discovery clients will get a 25% discount while Discovery Insure clients will get a 50% discount off simulator course fees. The Driving Academy can be found at 1 Discovery Place and is available to all members of the public. The Licence Prep course for first-time drivers

The Licence Prep course teaches first-time drivers the fundamentals of driving by providing them with real life driving experiences in a controlled environment. This allows new drivers to increase their confidence and helps to reduce their accident risk as they learn to anticipate, prepare for and handle unpredictable and hazardous driving conditions and react in a safe and controlled way, without putting themselves or others at risk. The

Licence Prep course consists of five lessons that are each 60 minutes long. Each lesson comprises of practical sessions and discussions with an instructor. First-time drivers get a 15% vehicle premium discount when they pass the Licence Prep simulator course and driver’s licence test and join Discovery Insure and Vitality Drive within two years. There are no Vitality Drive points earned for completing the Licence Prep course.




of 249

Confidential

The Refresher course for experienced drivers

This course is for those with a driver’s licence who wish to update their skills and learn defensive driving techniques. Vitality Drive clients who complete and pass the Refresher course will earn 150 Vitality Drive points every month for 12 months. The Refresher course consists of a 2-hour session that the driver can complete in one day. The course allows the driver to raise any concerns they may have in terms

of their driving skills. Defensive driving techniques and applications to everyday driving scenarios, including observation skills, ensuring the correct following and stopping distances as well as speed control. Driving in different traffic and weather conditions and on different road types is practised in order to apply the skills learned.

EyeGym – up to 150 Vitality Drive points When clients register for their EyeGym training on www.discovery.co.za, they will have immediate access to the Primary EyeGym course at no extra cost to them. Clients also get the Advanced EyeGym course at a discounted, once-off fee of R200. Clients can earn 150 Vitality Drive points by completing both the Primary course and the Advanced EyeGym course. Clients can even complete both courses at the same time if they want to. When a client logs in to the course for the first time, they will be prompted to do a series of short drills. This will assess their level of visual fitness. The time clients spend on these assessment drills does not form part of their daily EyeGym training time. Primary EyeGym course

Consists of four different drills, each made up of five grades. Across the five grades, there are 10 levels. Clients must pass the necessary levels for each drill to move to a higher grade.

▪ Clients will have access to the Primary EyeGym course for six months every year. For every 10 minutes of training that a client completes, they will earn 10 Vitality Drive points.

▪ Clients can earn a maximum of 50 points for their Primary EyeGym course. The maximum training time clients can do in a day is 10 minutes.

▪ If a client completes the five grades in the Primary course within less than 50 minutes, they will receive their 50 Vitality Drive points even sooner.

▪ If a client does not earn the maximum Vitality Drive points (50 points) within the six months free-access period, they can request to restart the course again for a fee of R85. When a client restarts the course, they then have another chance to earn the balance of their points to a maximum of 50 Vitality Drive points in a year.

The Advanced EyeGym course Consists of four new drills, each made up of five grades. Across the five grades, there are 15 levels in total. Clients can only progress to a higher grade when they have passed the necessary levels for each drill within that grade.

▪ Clients can access the Advanced course for a fee of R200 any time of year. This fee will give clients access to the course for 12 weeks.

▪ For every 10 minutes of training, a client completes in the Advanced course, they will earn 10 Vitality Drive points. Clients can earn up to a maximum of 100 Vitality Drive points.

▪ The maximum training time a client can do in a day is 10 minutes. ▪ If a client does not earn the maximum points within the 12-week access period, they can request to reactivate

the course again for a fee of R200. When a client reactivates the course, they can earn the balance of their points to a maximum of 100 Vitality Drive points in a year.





of 249

Confidential

Clients can earn up to 150 Vitality Drive points a month for making sure their

vehicles are safe to drive

Tiger Wheel & Tyre Annual MultiPoint check – 100 Vitality Drive points Clients who pass the Tiger Wheel & Tyre Annual MultiPoint check will earn 100 Vitality Drive points each month for 12 months. The Tiger Wheel & Tyre Annual MultiPoint check is a set of tests done to assess the roadworthiness of the vehicle’s various safety functions and to check its service history. Included in the check are: ▪ Steering wheel ▪ Headlights ▪ Hooter ▪ Tyres

▪ Indicators ▪ Shocks ▪ Windscreen wipers ▪ Seat belts

Clients need to pay R95 for each check. In the event that a client’s vehicle fails the check and the client needs to complete the check again, the client needs to show the results of their previous check to Tiger Wheel & Tyre. If the previous check was done within the last 30 days, then no additional fee will be charged, otherwise another R95 will be payable.

How to complete the Annual MultiPoint check Clients must take their vehicle to any Tiger Wheel & Tyre branch in South Africa and ask a consultant for a Discovery Insure Tiger Wheel & Tyre Annual MultiPoint check. To find their nearest branch, clients must visit www.twt.co.za. Clients will need to take the Vitality Drive card, ID or driving licence of the insured vehicle’s primary driver with them and fill in the details of the vehicle’s primary driver on the Tiger Wheel & Tyre Annual MultiPoint check form. These details need to match the information in the client’s Plan Schedule for the client to get their Vitality Drive points. Clients who are the primary driver of more than one car only need to take one car to do the check to qualify for their Vitality Drive points and increased fuel cash back. If the client has activated Vitality Drive for motorcycles and have also insured a car on their plan, they need to take their car to complete the check. If the client has Vitality Drive for motorcycles and the only vehicle insured on their plan is their motorcycle, then they need to take it to complete the Annual MultiPoint check. Tiger Wheel & Tyre will perform the checks and indicate whether the vehicle has passed or failed. They will also check that the client’s vehicle’s service history is up to date. When the check is completed, the client will receive a copy of the form. Clients need to keep this in a safe place should they have any queries at a later stage. If the client passes the Tiger Wheel & Tyre Annual MultiPoint check, they will earn 100 Vitality Drive points each month for 12 months. Having an up-to-date service history will earn clients 50 Vitality Drive points each month for 12 months. If the vehicle fails any of the checks then the client will not be awarded the maximum available points. It’s the client’s responsibility to correct the areas that their vehicle didn’t pass and complete the Tiger Wheel & Tyre Annual MultiPoint check again.

Bosch vehicle functionality 110-point check Clients who have the Discovery Insure Vehicle Warranty optional benefit and do the 110-point vehicle functionality check at Bosch, can use this check to replace the Tiger Wheel & Tyre Annual MultiPoint check. Clients will receive 100 Vitality Drive points for completing the 110-point check and their fuel cash back percentage will be boosted.

http://www.twt.co.za/




of 249

Confidential

The Bosch vehicle functionality check will only count as a replacement for the Annual MultiPoint check for the year it is completed. Clients will need to either complete the Tiger Wheel & Tyre Annual MultiPoint check or another Bosch vehicle functionality check in the next year to earn their Vitality Drive points.

Drive Centres Clients can also complete the Annual MultiPoint check and the 110-point vehicle functionality check at the state-of-the-art Drive Centres. The Drive Centres can be found at: ▪ Menlyn: 149 Aramist Avenue, Newlands, Pretoria, 0010 ▪ Cape Town: Corner of Bree Street and Strand Street, Cape Town City Centre, 8000 ▪ Sandton: 1 Discovery Place, Sandhurst, Sandton, 2196

Up-to-date service history – 50 Vitality Drive points When clients take their car to Tiger Wheel & Tyre to complete the Annual MultiPoint check, they will also check that your client’s service history is up to date. If clients have an up-to-date service history, they will earn 50 Vitality Drive pints each month for 12 months. Clients can also submit their service history directly to us by emailing their stamped service book to [email protected] to earn the 50 Vitality Drive points. Clients do not need to take brand-new vehicles to complete a Tiger Wheel & Tyre Annual MultiPoint check. Their service history also will be up to date. The client will automatically receive the 150 Vitality Drive points every month for 12 months and their cash back percentage will be boosted.

When client’s Vitality Drive points will reflect Vitality Drive points take different lengths of time to reflect on the client’s dashboard depending on where we get the information from. The following gives an indication of the time it takes for Vitality Drive points to reflect. Within 48 hours ▪ Completing the Online driver assessment ▪ Completing the Online driver training Within seven days ▪ Passing the Tiger Wheel & Tyre Annual

MultiPoint check ▪ Having an up-to-date service history

Within 14 days ▪ Completing an advanced driving course ▪ Completing an EyeGym course After the end of each month ▪ Driving Profile and Monthly points ▪ Receiving Vitality Drive points for claim-free year

Technical Details

If your client has completed an activity and their Vitality Drive points have not been awarded within these timeframes, please email us at [email protected].

mailto:[email protected]

mailto:[email protected]?subject=Vitality%20Drive%20points%20not%20reflecting%20for%20a%20client




of 249

Confidential

Vitality Drive Fuel Cash Back Option

Fuel cash back With the Vitality Drive fuel cash back option, clients on the Purple and Classic Plans can get up to 50% fuel cash back their fuel spend back each month. Clients on Essential Plan can get up to 25% back on their fuel spend each month. Every Vitality Drive point clients earn enables them to get cash back on R1 of fuel spend at BP and Shell as well as their monthly Gautrain spend (for the money clients load onto their Gautrain Swift Card). Clients can earn up to 1 600 Vitality Drive points every month and, with up to 50% back on their fuel spend, they can get a maximum of R800 back in monthly fuel cash back. This cash back is paid into the client’s bank account the month after the month they earn it in. For example, cash back earned on fuel spend in January will be paid in February. We’ll send clients an SMS each month to tell them how much they have earned. Clients will also be able to view a detailed breakdown and history of their fuel cash back on the Discovery app.

Three simple steps to start earning fuel cash back

01 | Install a Vitality Drive Sensor Clients must install a Vitality Drive telematics device for us to measure their driving behaviour. If your client has a compatible smartphone, they can install the Vitality Drive Sensor or Crowd Search Sensor by visiting their nearest Tiger Wheel & Tyre branch or one of the Discovery Insure Drive Centres and downloading the Discovery Insure app. Clients need to link their Discovery Insure app to their sensor so that we can measure their driving behaviour. If your client does not have a compatible smartphone, they will need to install the standalone DQ-Track. To do this, they must book an appointment in the app or on www.discovery.co.za.

02 | Link the Vitality Drive card Clients will receive a Vitality Drive card with their Vitality Drive Sensor or Crowd Search Sensor. They must link their Vitality Drive and Gautrain cards to their plan on the Discovery app by navigating to ‘Manage cards’ or on www.discovery.co.za. Alternatively, clients can SMS FUEL, their ID or passport number and the last 10 digits of their Vitality Drive card to 31347.

03 | Swipe the Vitality Drive card Encourage your clients to swipe their Vitality Drive card when they fill up at a participating BP or Shell service station. Clients will also earn cash back on their Gautrain spend when they use their linked Gautrain card.






of 249

Confidential

How clients can maximise their fuel cash back every month Fuel cash back is calculated as follows:

Help your clients get to the highest cash back percentage When clients on the Classic and Purple Plan activate the Vitality Drive programme, they immediately qualify for up to 10% fuel cash back. By insuring their household contents or buildings (or both) for at least R250 000, their cash back percentage will increase to up to 20%. Clients need to take their car to Tiger Wheel & Tyre and pass the Tiger Wheel & Tyre Annual MultiPoint check, which will boost their fuel cash back to up to 50%. The following table shows how the cash back percentages are determined for clients on the Classic and Purple Plan.

Purple and Classic Plans Car insurance Car and home insurance

Immediate cash back Up to 10% Up to 20%

Cash back for passing a Tiger Wheel & Tyre Annual MultiPoint check

Up to 25% Up to 50%

When clients on the Essential Plan activate the vitality Drive programme, they will immediately qualify for up to 5% fuel cash back. By ensuring their household contents or buildings (or both) for at least R250 000, their cash back percentage will increase to up to 10%. Clients need to take their cars to Tiger Wheel & Tyre and pass the Tiger Wheel & Tyre Annual MultiPoint check, which will boost their fuel cash back to up to 25%. The following table shows how the cash back percentages are determined for clients on the Essential Plan.

Essential Plan Car insurance Car and home insurance

Immediate cash back Up to 5% Up to 10%


Up to 12.5% Up to 25%




of 249

Confidential

More about fuel cash back ▪ For plans that have more than one primary

driver, we will pay the total of all the primary drivers’ fuel cash back to the planholder. Fuel cash back is paid into the premium paying bank account or doubled and paid into the client’s Insure Funder Account. Planholders can select the bank accounts fuel cash back is paid to. Each primary driver on the plan can have their fuel cash back paid into their own bank account, as specified by the planholder.

▪ The client’s Vitality Drive card is used to record their fuel spend at participating BP and Shell service stations. Only the Vitality Drive member whose name appears on the card may use it for fuel purchases for the cars that they are listed as the primary driver for.

▪ Clients will only be able to earn a cash back if they have a working telematics device installed in their vehicle. All vehicles (including motorcycles) for which a primary driver has been listed need to have a working device installed in them in order for that primary driver to earn fuel cash back.

▪ The maximum points clients can earn is 1 600 if they have the Vitality Drive Sensor, so the maximum fuel cash back a client can earn in a month, given that they are claim free for at least three years, is R800. The maximum monthly fuel cash back that a client can earn in their first two years is R750, based on 1 500 Vitality Drive points, since no Vitality Drive points for claim-free years are available during the first two years. In their third year, the maximum monthly fuel cash back that a client can earn is R775, based on 1 550 Vitality Drive points.

▪ The maximum Vitality Drive points clients can earn is 1 450 if they have the standalone DQ-Track, so the maximum fuel cash back a client can earn in a month, given that they are claim free for at least three years, is R725. The maximum monthly fuel cash back that a client with a standalone DQ-Track can earn in their first two years is R675, based on 1 350 points, since no Vitality Drive points for claim-free years are available during the first two years. In their third year, the maximum monthly fuel cash back that a client can earn is R700, based on 1 400 Vitality Drive points.

The Insure Funder Account (IFA) – clients can double their fuel cash back by

having it paid into their Insure Funder Account The Insure Funder Account (IFA) is available to Vitality Drive clients who have selected the fuel cash back reward option and gives clients the opportunity to double their fuel cash back by paying it into their IFA. The balance in their IFA carries over monthly and yearly.

Benefits of the Insure Funder Account 1. Clients can fund any excess for a valid car or car

hire claim that is more than the basic excess from their IFA.

2. Clients can lower their car premium by increasing their voluntary excess. This excess can then be funded from their IFA.

3. Clients can withdraw up to 50% of their Insure Funder Account balance that has accumulated up to the end of every three-year cycle.

4. Clients can fund their new tyre purchases at Tiger Wheel & Tyre with their Insure Funder Account at any point in time, based on their Vitality Drive status.




of 249

Confidential

Funding car and car hire excesses using the IFA

Example

A client earning R300 in fuel cash back each month who chooses to have their fuel cash paid into their Insure Funder Account, will have R600 paid into their IFA each month. It will only take this client six months to have enough money to cover a basic excess of R3 500. By driving well, this client is making sure that they have no out-of-pocket expenses if they have a valid vehicle claim.

Lower premium by increasing the excess

Example

A client is on the Classic Plan and has a basic excess of R3 500. He has managed to accumulate R10 000 in his Insure Funder Account which will be used to cover an excess for a claim. He decides to increase his voluntary excess to R6 500 (total excess: R10 000 = basic excess + voluntary excess), because he knows his IFA will cover that amount. As a result, his motor insurance premium will be reduced. The client has a vehicle claim of R8 000. Since R8 000 is greater than the basic excess, he is able to use his IFA to fund his voluntary excess and pay the full claim amount. His IFA balance after this claim is R2 000. At this point the client needs to decide if he wants to reduce his voluntary excess back down to zero and remove his discount. If he doesn’t and he has another claim, his total excess would still be R10 000, but his IFA only contains R2 000, so he would need to fund the R8 000 himself during the period that he is still building up his IFA. If the client has a claim less than R3 500, he won’t be able to use is IFA as any claim less than the basic excess is for client’s own account.

Withdrawing funds from the IFA All clients can withdraw up to 50% of their Insure Funder Account balance that has accumulated up to the end of every three-year cycle. After every three-year period, clients will enter a new three-year cycle. The money paid into their Insure Funder Account during the new cycle can only be withdrawn at the end of those three years. Clients can withdraw money from their Insure Funder Account, as follows: ▪ For every R1 cash withdrawal, the Insure Funder Account value will drop by R2. For example, if a client’s IFA

balance is R20 000 after three years, they can withdraw R10 000 in cash, after which their IFA balance will be zero.




of 249

Confidential

Using the IFA to fund tyres at Tiger Wheel & Tyre Clients can pay for their new tyres at Tiger Wheel & Tyre with their Insure Funder Account at any point in time based on their Vitality Drive status. 1. Clients opt to double their fuel cash back by paying it into their IFA. 2. Clients can visit Tiger Wheel & Tyre to buy new tyres. They will get an initial discount based on the table

below:

Vitality Drive status Tiger Wheel & Tyre discount

Diamond 20%

Gold 15%

Silver 10%

Bronze 5%

Blue 2.5%

The discount is limited to purchases of R5 000 a transaction and up to a monthly limit of R10 000. 3. Clients can fund an additional portion of their invoice based on their Vitality Drive status, limited to their

Insure Funder Account balance, as shown in the table below:

Vitality Drive status Invoice portion that can be funded

by the IFA

Diamond 100%

Gold 70%

Silver 35%

Bronze 10%

Blue 5%




of 249

Confidential

Example

John (Diamond status) drives well and chooses to have his fuel cash back paid into his IFA. His Insure Funder Account balance is R10 000 (R5 000 from his fuel cash back, R5 000 matched by Discovery Insure). He buys new tyres from Tiger Wheel & Tyre for R6 250.96 before VAT. He gets an initial discount of 20% off his bill (limited to a total spend of R5 000 for each transaction), which amounts to R1 000. His remaining bill, including VAT is therefore R6 038.60.

Johan uses his IFA to fund 100% of the remaining invoice balance. After buying his tyres John has R3 961.40 left in his IFA, which is enough to fully fund his basic excess in the event of a car accident.

If John was on Gold Vitality Drive status, he would have received an initial discount of 15% and his sub-total including VAT would be R6 326.10. He would have funded 70% of his tyres (R4 428.27) using his IFA and only paid R1 897.83 of the discounted invoice balance for his new tyres. He would have R5 571.73 left in his IFA.

How to activate the Insure Funder Account Clients can activate the Insure Funder Account during the application process. Clients can also easily switch between the IFA and earning fuel cash back as cash on the Discovery app. They can also call us on 0860 751 751 or emailing [email protected].

Technical Details

▪ If a planholder selects the Insure Funder Account, then all fuel cash back earned by all primary drivers on the plan is paid into the IFA. If a planholder selects cash, then all fuel cash back earned on the plan is paid in cash into the planholder’s premium-paying bank account (or the bank accounts specified by the planholder).

▪ The Insure Funder Account does not accumulate interest. ▪ If your client’s Discovery Insure Plan or Vitality Drive benefit is cancelled at any time by them or by us, they

will receive 50% of their available balance as at the end of the last three-year cycle. Clients will lose all the funds accumulated in the Insure Funder Account within their current three-year cycle.

▪ Clients can opt in and out of the Insure Funder Account monthly. Planholders can now switch between having fuel cash back paid into their selected bank account and depositing it into their Insure Funder Account (IFA) on the Discovery website.

▪ When claiming for an excess from the Insure Funder Account, clients can only claim back up to the funds available to them in their Insure Funder Account.

mailto:[email protected]?subject=Activate%20Insure%20Funder%20Account




of 249

Confidential

▪ Using the Insure Funder Account to fund excesses for claims which are lower than the clients voluntary excess, but higher than the basic excess will still count as a claim, and reset the client’s claim-free points to zero.

▪ The Insure Funder Account is only available to clients who opt in for fuel cash back. Drive your Discount clients do not qualify for the Insure Funder Account.

▪ Each Insure Funder Account benefit is always limited by the benefit details and the fund balance, whichever is lower.

▪ The discount percentage used to fund new tyres is determined by the latest Vitality Drive status of the primary driver of the car for which tyres are being purchased, at the time of purchase.

▪ The benefit can only be used for tyre purchases for active vehicles on the plan with Vitality Drive. ▪ The Insure Funder Account discount applies to the final Tiger Wheel & Tyre invoice cost, after the initial

Vitality Drive Tiger Wheel & Tyre discount has been applied. As long as there are tyres on the Tiger Wheel & Tyre invoice, the discount will apply to the total invoice amount after VAT. This means that all other costs on the invoice will also get the benefit of the discount. All other costs can include things like wheel alignment.

▪ This Insure Funder Account tyre benefit is limited to the final Tiger Wheel & Tyre invoice cost after the initial, upfront Vitality Drive Tiger Wheel & Tyre discount has been applied or the Insure Funder Account fund balance, whichever is lower.

▪ On arrival at a Tiger Wheel & Tyre store, clients must tell the agent that they are a Vitality Drive client and present their Vitality Drive card to make sure that they get their discount.

▪ If your clients want to use their Insure Funder Account to fund their new tyres, they need to tell the Tiger Wheel & Tyre agent so the agent can log the amount funded by the client’s Insure Funder Account on their portal.

Perfect driving days We give away up to a tank of fuel to one of our best drivers every day. If your client has a Perfect driving day on the day they fill up at BP or Shell, they will be entered into a lucky draw and stand the chance to win back the amount they spent filling up.

Technical Details

▪ A day is considered a Perfect driving day if no Drive points are deducted during the day and there have been no harsh driving events (for example, acceleration, braking, cornering, speeding and cellphone use) as determined by Discovery Insure. That means, the client achieved the maximum daily points of 25 Drive points for the Vitality Drive Sensor and Crowd Search Sensor or 20 Drive points for the standalone DQ-Track on the day they fill up.

▪ Clients are only eligible to win once in any three-month period. Winners will be contacted within 48 hours after their Perfect driving day by SMS or email. The reward will reflect in the planholder’s premium-paying bank account at the same time as the next monthly fuel cash back is paid. Winners will also be announced on www.discovery.co.za.




of 249

Confidential

Young Adult benefit With Discovery Insure’s Young Adult benefit, young drivers aged 18 to 25 with comprehensive motor cover get great rewards for driving well.

The client’s Rewards Fund We will deposit 25% of the client’s car insurance premiums into their Rewards Fund upfront every six months (the initial premium at the start of each six-month period x 25% x 6). At the end of each month, we will adjust the client’s Rewards Fund according to their Vitality Drive status as follows:

Vitality Drive status Classic and Purple Plans Essential Plans Blue -R200 -R100

Bronze R0 R0

Silver R50 R25

Gold R200 R100

Diamond At the end of every month, we will also deduct R10 from the client’s Rewards Fund for every kilometre they drive from 23:00 to 04:30. At the end of the six-month cycle, the balance of the client’s Rewards Fund will be paid into the premium paying bank account or the young adult’s bank account, depending on the planholder’s choice.

We may adjust the client’s premium if they consistently drive late at night The client may have a premium adjustment at the end of every six months based on their kilometres of night-time driving over the previous six-month period.

Monthly average night-time kilometres Premium increase

0 to 50 km 0%

50 to 100 km 10%

100 to 150 km 15%

150 to 200 km 20%

200 or more km 25%

These premium adjustments are in addition to the client’s annual premium review at their plan anniversary and will only apply for six months.




of 249

Confidential

Technical Details

▪ If the client has a negative Rewards Fund balance at the end of a six-month period, the value of their Rewards Fund will be set to zero and they will start the next six-month cycle with a R0 balance.

▪ Clients can opt in to or out of the Young Adult benefit at any stage monthly by contacting us on 0860 751 751 or sending an email to [email protected].

▪ When opting out or leaving Discovery Insure, the balance of the client’s Rewards Fund that has not yet been paid out will be lost.

▪ The client will no longer qualify for the Young Adult benefit at plan anniversary in the year that they turn 26.

▪ The Young Adult benefit is only available on the fuel cash back reward option. It is not available on Drive your Discount.

Example

Angela is 23 years old and has a Discovery Insure Classic Plan with Vitality Drive. She has installed a Vitality Drive Sensor in her car and selected the Young Adult benefit. Angela’s car insurance premium is R1 000 a month and she qualifies for a 50% fuel cash back percentage. Angela drives well and earns 1 000 Vitality Drive points each month, getting a Gold Vitality Drive status. Her fuel spend each month is R1 000 and so she earns R500 back on her fuel spend every month. Angela drives 10 km of night-time driving (from 23:00 to 04:30) each month. Angela’s Rewards Fund grows as follows every month:

▪ 25% of the car premium ▪ Gold Vitality Drive status ▪ Night-time driving (10 km x R10)

R250 R200 -R100 R350

▪ Every six months, Angela will get R2 100 (350 x 6) paid into her Rewards Fund which she can spend as she wants.





of 249

Confidential

Drive Your Discount Reward Option Drive your Discount is a digitally enabled way for clients to join Vitality Drive and earn an upfront and ongoing premium discount of up to 20% based on their driving behaviour. These clients will also get access to all Vitality Drive status-based rewards, Active Rewards and Drive Me benefits.

Joining Discovery Insure with Drive your Discount Clients can join Discovery Insure with Drive your Discount by following these easy steps: 1. Download the Discovery app and register for

Drive your Discount. 2. Clients must drive well to earn an upfront

premium discount of up to 20%. Every seven days (up to 28 days) clients can check the app to see how their discount may have changed based on how they drive. Clients need to drive well for a minimum of seven days and 100 kilometres to be presented their first discounted quote to join Discovery Insure.

3. Clients can join Discovery Insure at any time during the 28-day trial period by accepting the quote and discount offered to them through the app.

4. Once the client has accepted the quote and joined Discovery Insure, their driving behaviour will continue to be measured through the Discovery app. With this, the client can earn up to 1 600 Vitality Drive points by driving well,

completing knowledge and awareness activities and making sure their vehicle is safe to drive. Clients will earn a Vitality Drive status based on their Vitality Drive points. For more details about how to maximise your Vitality Drive points, see section 3.

5. At plan anniversary, we will recalculate the client’s Drive your Discount discount to give them an up to 20% discount, based on how well they drive during the year. The client must continue driving well to maintain and improve their premium discount.

6. To get access to state-of-the-art safety features, clients can visit Tiger Wheel & Tyre to collect and install a Vitality Drive Sensor and download the Discovery Insure app. In addition, clients will also get immediate trip feedback on the app and a more accurate measurement of their driving behaviour.

Technical Details:

▪ The Dynamic Plan is no longer available. ▪ Vitality Drive is compulsory with this benefit. ▪ Clients will pay the monthly Vitality Drive

premium based on the plan selected. ▪ During the 28-day period, clients will be scored

using a drive ranking. A client’s drive rank is a measure of how well they drive. The client will get a drive rank out of 10, where, 0–3 are poor drivers, 4–7 are average drivers and 8–10 are excellent drivers. This drive ranking, together with the length of time the client has been on the trial will be used to calculate the client’s discount.

▪ Once a client activates their plan, their initial Drive your Discount discount will be guaranteed for one year and will not be reviewed in the year. The Drive your Discount discount determined at plan anniversary is also guaranteed for a year after being earned.

▪ At plan anniversary, the client must have a driving history of a minimum of seven days and at least 100 kilometres of driving in the last six months, to qualify for a Drive your Discount discount at plan anniversary.

▪ Poor driving behaviour will have a negative impact on a driver’s Drive your Discount discount and clients can get a reduced or 0% discount on their premiums at anniversary.

▪ Clients will be able to view their Drive your Discount discount on the Discovery app as well as on the website, www.discovery.co.za.

▪ Clients will be able to see their renewal premium discount percentage on their anniversary letter and discount amount on their Plan Schedule.

▪ At renewal, we will update the client’s previous discount with their updated Drive your Discount discount that is recalculated at their anniversary.

▪ Clients will never get a Drive your Discount loading applied at anniversary.

▪ Drive your Discount clients do not qualify for fuel cash back or any fuel-related benefits (including the Insure Funder Account, Insure Funder Account tyre purchase benefit, Perfect driving days and the Young Adult benefit).

▪ Clients qualify for all Vitality Drive status-related benefits, Active Rewards and Drive Me benefits.

▪ Plans cannot have a combination of the Drive your Discount reward option and the fuel cash back reward option. One of the reward options needs to be chosen.

▪ Clients can add more than one vehicle or driver per plan.

▪ New vehicles and drivers can be added after activation through a servicing change.

▪ If your client adds another vehicle that they are the primary driver for, then their new vehicle’s premium will also receive the Drive your Discount discount.

▪ If your client and another primary driver both join Vitality Drive through the Drive your Discount trial, they will be able to make a servicing change to join onto one policy and their discounts will be based on the qualifying driving data.

▪ If your client adds another vehicle to their policy with another primary driver (that has never been on Vitality Drive or that has not joined through the Drive your Discount trial), the other primary driver will need to install a Vitality Drive Sensor to measure their driving behaviour. Their Drive your Discount discount will only reflect at plan anniversary. Alternatively, the other driver should go through the Drive trial to get a premium discount upfront.

▪ Note that once the 28-day trial period has ended, users that have not activated a Discovery Insure plan will no longer be able to access the driving measurement through the Discovery app.

▪ Once the client activates their quote and joins Discovery Insure, they can continue monitoring their driving on the Discovery app. They will not have access to safety features and need to install a Vitality Drive Sensor for access.

▪ If your client requires the Crowd Search Sensor as an underwriting requirement, they need to visit Tiger Wheel & Tyre and install the device within 5 days of plan activation to have theft cover. They will be advised of this requirement during the Drive your Discount trial and at policy activation. They will need to pay the stolen vehicle recovery fee of R99 a month with the Crowd Search Sensor.

▪ If clients that are on Drive your Discount change to fuel cash back, they will no longer be able to monitor their driving on the Discovery app and will have to collect and install a Vitality Drive Sensor and download the Discovery Insure app (unless they have already installed a Vitality Drive Sensor or Crowd Search Sensor).





of 249

Confidential

Broker involvement with Drive your Discount ▪ You can send download links to your clients and manage your leads and clients’ quotes on the Financial

Adviser Zone. You can find your leads and active Drive your Discount clients by selecting: Your clients > Insure business overview where you will see a tab called Drive your Discount clients.

▪ You can send out download links for the driving app to all your existing clients who do not have Discovery Insure.

▪ You can send bulk download links to your existing clients on FAZ by selecting the Take action button next to the Drive your Discount leads.

▪ You can then Request Campaign and select the clients you would like to send the download link to, including the functionality to send to all your existing clients.

▪ You can also send download links to new clients, provided that you have their personal details. ▪ The client can then download the link and follow the same registration process as other clients. ▪ You can manage your active Drive your Discount ▪ clients by selecting the Take action button next to the Drive your Discount active plans. Here you will be able

to view your Drive your Discount clients’ information including their Vitality Drive status, drive rank, discount and premium.

▪ Clients who are on the 28-day trial period cannot be sent another lead. If your client does not accept the trial, you can re-send them another link.

▪ If the client does not download the app you will lose the ‘lead’ and the client’s name can go back into the pool to be sent out as a lead again. This lead can then go to other brokers, as your client has not acted on the lead in the given period.

▪ If your client opts out of the programme, you or another broker will not be able to re-send that client a link again.

▪ Non-accredited brokers cannot do referrals through Drive your Discount. ▪ Accredited brokers and their clients will follow these steps:

▪ As part of registration, clients will be presented with a list of brokers linked to them, who are accredited to sell Discovery Insure. They will be able to select their preferred broker from this list.

▪ Once the broker has been selected by the client, they will be notified of all quotes sent to the client and all amendments made to these quotes via email.

▪ The quotes will also be available in the brokers FAZ inbox. ▪ At quoting stage, clients will again be able to confirm or re-select their preferred broker. ▪ The broker client will be able to activate their own quote during the journey. However, they must

accept a disclaimer which confirms that they have not received advice. ▪ The broker will be able to view this activated client’s plan on FAZ and will receive the commission

linked to this plan (the broker would still need to complete compliance documents for the sale).

Clients transitioning between Drive your Discount and fuel cash back ▪ Discovery Insure clients who would like to switch from the fuel cash back option to Drive your Discount will be

able to do so by calling into the call centre or you can make a servicing change for them on FAZ. ▪ The client’s discount will be based on their existing driving data provided that they have a minimum of seven

days and at least a 100 kilometres of driving in the last six months. ▪ If the client chooses to switch from fuel cash back to Drive your Discount, they will no longer earn fuel cash

back or any fuel-related benefits. ▪ If the client has an Insure Funder Account (IFA) the funds will remain in their IFA and this will operate

according to the normal IFA rules.




of 249

Confidential

Rewards and benefits available on all Plans and reward options (Fuel

Cash Back and Drive Your Discount)

Vitality Active Rewards Clients can get rewarded for meeting their personalised weekly Active Rewards drive goal. By joining Vitality Active Rewards, clients can earn Discovery Miles to spend on exciting rewards on their choice for achieving their weekly drive goal.

Clients must download the Discovery App and activate Active Rewards ▪ Clients must download the Discovery app from the Apple App Store or the Google Play store. ▪ Clients can access Active Rewards through the Discovery app. ▪ Clients need to activate Active Rewards on the Discovery app to start earning rewards.

All clients need to do is drive well to reach their personalised, weekly drive goal

and close their drive ring

Earn Discovery Miles When clients achieve their drive goal, they will earn a play on the Vitality Active Rewards gameboard, where they will be able to flip a tile to reveal between 150 and 750 Discovery Miles. Discovery Miles have been designed to give clients a lot more options to reward themselves with for reaching their goals. Visit the Discovery website for more information about the rewards partners where clients can spend their Discovery Miles.





of 249

Confidential

Technical Details

▪ To start earning Active Rewards, clients need to install a telematics device in their vehicle and make sure that their device is working.

▪ Active Rewards goals are personalised and will change each week based on the driver’s driving behaviour.

▪ The minimum drive goal for a week is 70 Drive points. This is the drive goal clients will start with when they first opt in to Active Rewards.

▪ If clients meet their goal for the week by closing their drive ring, their goal for the next week will increase by 15 Drive points. Their goal will continue to increase every time that they achieve it. The maximum goal clients can receive is 140 Drive points if they have the Vitality Drive Sensor or Crowd Search Sensor and 120 Drive points if they have the standalone DQ-Track, since we cannot measure cellphone use

▪ Clients on Drive your Discount who do not have a Vitality Drive Sensor or Crowd Search Sensor installed in their vehicle will receive a drive goal of 70 to 140 Drive points and will need to drive at least 100km in the week to achieve their drive goal.

▪ If your clients did drive on a no-drive day and their trips are not reflecting as a recorded trip, they need to make sure that they upload their trip data. Clients may have selected to only upload their trip data when they are on Wi-Fi. If this is the case, clients must connect to Wi-Fi so that they can upload their latest trip information and we can record all of their trips. Please note that clients’ Drive points balance for the day may change to reflect the actual points deducted during each trip and not an average of their Drive points balance that we have allocated to them for their no-drive day.

▪ For no-drive days to count towards filling their drive ring for a particular week, clients must upload their trip data by the end of the Monday following that week. If clients upload their trip data later than this, their no-drive day points will not count towards their drive goal but will still count towards their monthly Driving Profile, provided that they upload their trip data by the third day of the next month.

▪ Active Rewards weeks run from Saturday to Friday every week and plays on the gameboard are issued on Wednesdays. This means clients will be able to view their personalised weekly drive goal on Saturday morning and will have until Friday night to fill their drive ring.

▪ Clients can only earn one Active Reward for driving well in a week.

▪ Gameboard plays will be issued on the Wednesday following the goal achievement.

▪ Clients will only be able to access Vitality Active Rewards through the Discovery app.

▪ Plays on the gameboard must be played within one week of being earned. If not played in this time, they will expire. In other words, plays are made available on a reward Wednesday and must be played before the next reward Wednesday, when the gameboard will reset itself.

▪ The gameboard stays the same until it resets the next week.

▪ Clients can earn between 150 and 750 Discovery Miles a week by achieving their drive goal.

▪ Discovery Miles expire after five years. ▪ The oldest Discovery Miles will be used first. ▪ For clients with both the Vitality Drive Sensor

and the standalone DQ-Track, Active Rewards goals will be calculated and allocated according to the Vitality Drive Sensor rules.




of 249

Confidential

Additional monthly drive goals Clients can earn even more Discovery Miles for additional monthly drive goals. At the start of each month, clients will be allocated an additional monthly drive goal, based on their previous month’s driving behaviour. They must complete this goal by the end of the month to earn even more Discovery Miles. Driving Profile goal Drivers who qualify for this goal will need to increase their Driving Profile by an additional 100 Drive points during the month to meet their goal. Clients will be rewarded with 60 Discovery Miles for achieving this goal. Driving behaviour goal We will allocate one of the driving behaviours (from accelerating, braking, cornering or cellphone use) to clients. Clients will need to improve this allocated behaviour over the next month by having six additional days with no driving events for that specified behaviour. Clients will be rewarded with 60 Discovery Miles for achieving this goal. For example, if a client is allocated the cellphone use goal they will need to increase the number of days with no cellphone use while driving by six days. So, if last month they had 10 days where they had no cellphone-use events the whole day, they will need to increase the number of days with no cellphone-use events by six to a total of 16 days on no cellphone use while driving.

This goal will be allocated to the driving behaviour that the driver needs to improve the most, unless the same goal has been allocated for the previous two months. If this is the case, the next driving behaviour that needs to be improved on will be allocated to the driver as a goal. Achieve a goal streak Clients will need to achieve three Active Rewards goals in a row during a month to achieve this goal. Clients will be rewarded with 60 Miles for achieving this goal. Tiger Wheel & Tyre Annual MultiPoint check goal Clients must complete and pass the Tiger Wheel & Tyre Annual MultiPoint check. Clients will be allocated this goal, in addition to one of the other three goals, if the Annual MultiPoint check has expired or if the client have never completed the check. Clients will earn 40 Discovery Miles in the month that they complete this goal.

Vitality Drive status-based rewards

Guaranteed 0% renewal increase for Diamond Vitality Drive status drivers Drivers who have earned the Diamond Vitality Drive status get a guaranteed 0% renewal increase on their comprehensive vehicle insurance premium.

Technical Details

▪ The Vitality Drive status three months before an anniversary date will be used to determine eligibility for the 0% renewal increase. In other words, clients need to be on Diamond status at the time of their renewal calculation. For example: A client’s anniversary date is on 1 April 2021. The renewal calculation will be done on 1 February 2021 and the client will need to be on Diamond status at the end of December. We will therefore consider their driving and claims behaviour for the period 1 January 2020 to 31 December 2020.

▪ The 0% increase will be applicable to the comprehensive vehicle premium for one year.

▪ The guaranteed 0% renewal increase is for each primary driver and is applicable to the Diamond-status primary driver’s motor insurance premium.

▪ Clients in their first plan year can achieve Diamond status after month nine, provided they are claim free since inception and have an average monthly score of at least 1 000 Vitality Drive points, subject to having a minimum of seven months of driving behaviour data.




of 249

Confidential

Tiger Wheel & Tyre discounts Tiger Wheel & Tyre is a network of tyre fitment centres across Southern Africa specialising in performance wheels and the world’s best brands of tyres at affordable prices. All clients get up to 20% discount (depending on their Vitality Drive status) on all their purchases at Tiger Wheel & Tyre. This discount is limited to a total spend of R5 000 for each transaction, with a monthly spend limit of R10 000. Clients must simply show their Vitality Drive card and they will receive the discount. The table below details the discount level based on a client’s Vitality Drive status:

Vitality Drive status Discount

Diamond 20%

Gold 15%

Silver 10%

Bronze 5%

Blue 2.5%

Technical Details

▪ The Tiger Wheel & Tyre discount will apply to all nationwide promotions. However, the discount will not apply to any in-store-specific promotions.

▪ The Tiger Wheel & Tyre discount can be redeemed with any form of payment, excluding American Express, Diners Club, ABSA Rewards and UCount Rewards payments.

▪ The discount does not apply to the R95 cost of the Tiger Wheel & Tyre Annual MultiPoint check and may not be combined with any other discount or cash back offer from Tiger Wheel & Tyre.

▪ The Tiger Wheel & Tyre discount is limited to a maximum purchase of R5 000 for each transaction and limited to a total spend of R10 000 a month, irrespective of the invoice value.




of 249

Confidential

Bosch car servicing and maintenance discounts We have partnered with Bosch to give our clients discounts on their maintenance and service costs based on the primary driver’s Vitality Drive status. Clients can get up to 20% off when they take their vehicle to Bosch for servicing and maintenance based on their Vitality Drive status at the time of servicing.


Diamond 20%

Gold 15%

Silver 10%

Bronze 7.5%

Blue 5%

Technical Details

▪ The discount may be used on the insured vehicles only.

▪ Clients who are in the first month of their plan or who do not have a Vitality Drive status will be awarded a discount based on the Blue Vitality Drive status.

▪ Clients can book an appointment online at boschcar.co.za using their ID or passport number, vehicle registration or Vitality Drive card.

▪ On arrival at a Bosch store, clients must tell the agent that they are Vitality Drive clients and present their Vitality Drive card or ID card to make sure that they get their discount.

Car servicing and maintenance costs discount for Vehicle Warranty clients If your client has added the Discovery Insure Vehicle Warranty benefit and has Vitality Drive activated on their Discovery Insure plan, they can get up to 50% off when they take their vehicle for servicing or maintenance, based on their Vitality Drive status, every year. This discount is limited to R5 000 spend.


Diamond 50%

Gold 25%

Silver 10%

Bronze 7.5%

Blue 5%




of 249

Confidential

PLUS, your clients can double their discount up to 100% based on their Vitality Drive status for any servicing or maintenance costs at a Motus Network or Bosch dealership. This doubling of your client’s discount at these selected dealerships is also limited to R5 000 spend.


Diamond 100%

Gold 50%

Silver 20%

Bronze 15%

Blue 10%

In addition, your clients also qualify for the existing up to 20% off servicing costs at Bosch dealerships for any spend exceeding the R5 000 limit.

Technical Details:

▪ Your client must have the Vehicle Warranty optional benefit on their Discovery Insure Plan to qualify for this servicing and maintenance discount.

▪ We will use your client’s Vitality Drive status at the time of servicing or maintenance.

▪ Clients can use their discount once every plan year (in other words, once between their plan’s anniversaries).

▪ The discount may be used on vehicles that qualify for the Discovery Insure Vehicle Warranty only.

▪ Your clients can go to any Retail Motor Industry (RMI) or Motor Industry Workshop Association (MIWA) approved dealer to complete their service and receive their up to 50% discount.

▪ Your client must submit their invoice from the RMI or MIWA dealer to us to get their up to 50% discount paid to them (if they do not go to a Bosch or Motus dealership).

▪ Clients who go to a Motus Network or Bosch dealership will have the discount immediately applied to their invoice.




of 249

Confidential

Discounted car seat benefit Clients can get up to 50% off the purchase of a selected child car seat every year. The discount is based on the client’s Vitality Drive status at the time of purchase and will apply on child car seats from our partners, Born Fabulous and Toys R Us:


Diamond 50%

Gold 35%

Silver 30%

Bronze 25%

Blue 20%

The process

1. The client logs in to their Discovery Insure profile on the Discovery website or Discovery app. 2. On the Discovery website, clients navigate to the Car and Home Insurance tab and click on Additional rewards

and benefits. On the Discovery app, they click on the Car and Home Insurance tab and navigate to Car seat discount.

3. The client selects the discounted child car seat benefit and activates the benefit. 4. A wiCode will be sent to the client. The code will be valid for 12 months. 5. The client logs in to the Born Fabulous website or visits a Toys R Us store to use their voucher on a qualifying

car seat.

Technical Details

▪ Vitality Drive must be active on the plan to qualify for the discount.

▪ The Discovery Insure car seat discount is for child car seats only.

▪ There is a limit of one baby seat for every primary driver every 12 months, where the 12-month period starts once the client receives the voucher.

▪ A list of qualifying car seats will be available on the Discovery website

Car Seat replacement following an accident Clients also receive a car seat replacement up to the value of R5 000 if the car seat is damaged in a motor vehicle accident and an additional R3 000 limit for any other car seat that was in the vehicle at the time of the accident:

Technical Details

▪ Each car seat replacement will be limited to the value of R5 000.

▪ If there was more than one car seat damaged at the time of the accident, a R3 000 limit will apply to the additional car seats.

▪ If the vehicle is not drivable following an accident, the client will have the option to replace the car seat.

▪ If the vehicle is drivable after the accident and the client would like to replace the car seat, they will need to provide proof of damage to the car seat.

▪ The client will receive a voucher to purchase a new car seat from Born Fabulous or Toys R Us.

Drive Me benefits With Discovery Insure Drive Me partners, clients get up to 25% off the standard fee to help them get home safely. Uber is a convenient, inexpensive and safe ride-on-demand service that uses a smartphone application to connect a user to a private driver who will pick them up from their location and drive them to their destination. Road Trip and Scooter Angels offer take-me-home services where the user and their car will be fetched at their location and driven safely to their home. Uber ▪ All Purple and Classic Plan clients receive 25% off

all Uber trips, up to R50 a trip and limited to 15 trips a month for each primary driver.

▪ Clients on the Essential Plan receive 10% off all Uber trips, up to R30 a trip and limited to 15 trips a month for each primary driver.

▪ Uber services are available in Johannesburg, Pretoria, Durban, Cape Town and Port Elizabeth.

▪ Clients can easily activate the Uber benefit on the Discovery website by simply logging in to their Discovery profile, navigating to Car and home insurance and clicking on Other rewards and benefits. Clients must scroll down to Drive Me discounts and click on learn more. This web page provides information about our Drive Me benefits. Here clients can click on Learn more about Uber driving services where they will be able to activate the Uber benefit.

▪ Coming soon: clients can easily activate the Uber benefit in the Discovery app. All they need to do is log in to the app, navigate to Car and home insurance, click on the Drive Me tab and select Uber. The client will then be directed to the Uber app where they will be able to activate the benefit immediately.

▪ Clients can download the Uber smartphone app through the link available on the Discovery Insure app or by visiting www.uber.com.

Road Trip and Scooter Angels ▪ Vitality Drive clients pay no monthly fee for a

membership with both Road Trip and Scooter Angels. In addition, these clients get a 25% discount on all trips, up to a maximum spend (before discount) of R1 000 a month.

▪ Clients who use Road Trip will be charged at a rate of R12.95 a kilometre. Clients will need to pay a discounted monthly membership fee of R119 (excluding VAT). Clients will need to register with Road Trip at www.roadtrip.co.za.

▪ Road Trip can be contacted through www.roadtrip.co.za or by calling 087 943 8671.

▪ Clients who use Scooter Angels will be charged at a rate of R13.20 a kilometre. Clients will need to pay a discounted monthly membership fee of R30 (excluding VAT). Clients will need to register for the Scooter Angels’ Classic Plan at www.scooterangels.co.za. Scooter Angels can be contacted by calling 087 233 8787 or through www.scooterangels.co.za.

Technical Details

▪ Clients need to have an active Vitality Drive programme to qualify for the Drive Me benefit. Discovery Insure reserves the right to adjust the discount limit at any time.

▪ SMSs are charged at normal provider rates. Free SMSs and contract rates do not apply.

▪ The Uber discount is not applicable to Uber Eats orders.

▪ By registering for the Drive Me benefit with Uber, clients consent to the exchange of their personal information and the personal information of any insured party on their plan between Discovery Insure and Uber for administration purposes.

▪ If the client uses Uber’s rideshare service, each person in the rideshare will pay an additional fee of R2.50. The receipt will reflect the total split fare fee for all riders. Discovery Insure is not responsible for any loss, damage or harm that may arise from using the Drive Me benefit and its contracted drivers.

▪ Young Adult benefit clients who use Drive Me services between 23:00 and 04:30 won’t have their Rewards Fund affected by night-time driving penalties.

▪ Clients who use Drive Me services between 23:00 and 04:30, will not have their night-time driving points negatively impacted by these late-night driving trips.

▪ Uber, Road Trip and Scooter Angels terms and conditions apply.

http://www.uber.com/

http://www.roadtrip.co.za/

http://www.scooterangels.co.za/




of 249

Confidential

Vitality Drive 65+ If your clients are aged 65 to 80, they can qualify for Vitality Drive 65+ and get up to 50% of their premium back every year, based on their Vitality Drive status. If clients proactively manage their health by doing the Vitality Health Check for 65+, drive well and drive less than 10 000 km in a year, they qualify for this premium payback. Clients will also get access to all the other rich Vitality Drive rewards such as up to 50% of their BP and Shell fuel and Gautrain cash back, Vitality Active Rewards and other Vitality Drive status-based rewards.

Vitality Drive status Annual payback

Diamond 50%

Gold 35%

Silver 20%

Bronze 15%

Blue 10%

Technical Details

▪ To qualify for this benefit, clients must: ▪ Be aged from 65 up to 80 ▪ Complete the Vitality Health Check for

65+ within the 12 months prior to their annual payback calculation.

▪ Have Vitality Drive activated on their plan for at least six months.

▪ Drive less than 10 000 km in a year. ▪ Once your client completes the Vitality Health

Check for 65+, you and your client will receive notification that they qualify for the Vitality Drive 65+ benefit.

▪ Clients will receive their annual payback at Plan anniversary, at the same time that their renewal premium is debited. The full payback amount will be paid into the client’s account.

▪ Clients’ annual payback is calculated as their annual payback percentage multiplied by their annual premium. We will also use the number of months for which driving behaviour data is available.

▪ If clients do not have 12 full months of driving data, they will receive a pro-rated premium payback. This means that their annual payback

will depend on the number of months in the year that they had a working telematics device.

▪ In the year that clients turn 65, their annual payback will be pro-rated for the number of months that they are 65 years old.

▪ If the client turns 80 before their next annual payback, they will still receive the full annual payback for that year. The Vitality Health Check for 65+ can be done by any client, regardless if they are a Vitality or Discovery Health Medical Scheme member.

▪ If the client is a Vitality or Discovery Health Medical Scheme member, they will have the fee of the check waived.

▪ If the client is not a Vitality or Discovery Health Medical Scheme member, they will have to pay a fee of R280 for the check.

▪ Clients need to complete the Vitality Health Check for 65+ at any stage during the year, provided that they do so before their premium renewal calculation (60 days before their plan anniversary).




of 249

Confidential

▪ If the client is a Vitality or Discovery Health Medical Scheme member and they complete the Vitality Health Check for 65+ before becoming a Discovery Insure client, they will still be eligible for the Vitality Drive 65+ benefit provided the check was completed within the two months prior to joining Discovery Insure.

▪ To qualify for the Vitality Drive 65+ benefit, clients will be able to complete the Virtual Vitality Health Check-in at no cost until the Vitality Health Check for 65+ becomes available. Once the Vitality Health Check for 65+ is available, clients who are not Vitality or Discovery Health Medical Schemes members will only be able to complete the Vitality Health Check for 65+ (and not the virtual check) and will have to pay the fee of R280.

▪ The first premium payback will be payable 12 months after the benefit is live. If the client is an existing client and their plan anniversary is within the first 12 months of the benefit going live, they will need to wait until their next policy anniversary to receive their first premium payback.

▪ Clients’ overall Vitality Drive status for the year will be used to determine their annual payback percentage and hence their premium payback. The overall Vitality Drive status for the year is calculated as the client’s average Vitality Drive points over the 12-month period.

▪ An uncovered trip is when the Vitality Drive Sensor and the Discovery Insure app are not linked.

▪ Clients must make sure all the required settings are enabled and all permissions are accepted.

▪ All uncovered trips as well as partly covered trips will count towards client’s total distance travelled for the year.

▪ In this case, each minute of uncovered driving will count as 1 km towards their total distance travelled.

▪ Clients’ renewal premium is calculated 60 days before plan anniversary.

▪ For the client’s first plan anniversary, we will only have 10 months of driving data. We will use a 10-month average of the client’s Vitality Drive points and distance driven as estimates for the 11th and 12th months and their motor vehicle premium in the 10th month will be used for the 11th and 12th months.

▪ For plan anniversaries after the first, we will use a 12-month average of the client’s Vitality Drive points and 12 months of driving data to determine the total distance driven, up to the renewal premium calculation date.

▪ We will use the client’s motor vehicle premium as at the renewal premium calculation date for the remaining two months of their plan year.

▪ Clients can achieve Diamond Vitality Drive status by earning a monthly average of 1 000 or more Vitality Drive points and remaining claim-free for 12 months. This status is earned monthly and if the client is on Diamond status at renewal premium calculation date, they will receive 50% of the premium back.

Vehicle Safety Features

When your client installs a Vitality Drive telematics device in their insured vehicle, they will benefit from a range of state-of-the-art safety features. These include:

Impact Alert Impact Alert provides your client with an immediate response and medical care when their vehicle is involved in a severe accident, even when we can’t get hold of them.




of 249

Confidential

▪ When your client’s telematics device detects a

severe gravitational force (G-force), it will immediately alert us. We’ll monitor their vehicle to determine whether it’s stationary or continuing to drive normally. If your client’s vehicle stops, we will call them on the cellphone number we have on record for them. If we can’t reach your client, we will send emergency medical assistance to their vehicle’s location.

▪ Your client will also benefit if they are a Discovery Health Medical Scheme member, since medical emergency services will have access to their health records.

▪ There is no cost to your client for the emergency medical support dispatched unless they use the medical support vehicle for non-medical reasons.

Technical Details

▪ Impact Alert will work as long as the accident is severe enough to trigger an alert, your client’s telematics device is functioning and in an area with cellular network coverage. For the Vitality Drive Sensor and Crowd Search Sensor, clients need to make sure their app is linked to their sensor, they have enough battery, mobile data and that all the correct permissions and settings are enabled for Impact Alert to work.

Vehicle panic button The vehicle panic button enables your client to use their compatible smartphone as a panic button to request immediate assistance in the event of an emergency. If your client has installed and activated the Vitality Drive Sensor or Crowd Search Sensor, they can use of this panic button when they are in their car and their phone is connected to the sensor. An alert will be sent to Discovery Insure and your client will receive a notification to confirm that the alert has been sent. A call centre agent will try to contact the client or the names noted on the client’s plan to offer the necessary assistance. If they are unable to get hold of your client, they will immediately dispatch an emergency response team. The call centre can: ▪ Dispatch medical assistance. ▪ Initiate recovery processes or towing services,

depending on the incident. ▪ Live track the vehicle to safety if your client is

concerned about suspicious vehicles following them.

How to use the vehicle panic button on a

smartphone with an Android operating system ▪ Clients must simply press their smartphone’s

power button repeatedly, in quick succession, at

least five times while their Discovery Insure app is connected to their Vitality Drive Sensor or Crowd Search Sensor.

▪ An alert will be sent to Discovery Insure. The smartphone will vibrate and your client will receive a notification to confirm that the alert has been sent.

How to use the vehicle panic button on a

smartphone with iOS Clients must simply press the red Panic button that appears at the top right of the dashboard page of their Discovery Insure app when their app is connected to their Vitality Drive Sensor or Crowd Search Sensor. If your client’s smartphone is not connected to their Vitality Drive Sensor or Crowd Search Sensor, the dashboard will not display the vehicle panic button.

Find my vehicles If your client has the Vitality Drive Sensor or Crowd Search Sensor, they can locate all the vehicles insured on their plan through their smartphone. The app will show the last location where the vehicle and smartphone were paired. If a family member is driving your client’s car and their smartphone is paired with the vehicle, the planholder can view the trip in real time. If your client has a standalone DQ-Track fitted to their vehicle, they can simply send an SMS to the DQ-Track tracking number they were given by the technician during installation to find out where their vehicle is.




of 249

Confidential

Weather warnings Using weather data combined with the telematics device location data, we can send clients warnings of imminent bad weather. For example, we can warn clients of a large approaching hail storm in their area, when it would be safer for their vehicles to be parked under a roof and not driving on the roads.

Crowd Search: Intelligent technology to keep drivers safe Crowd Search is our state-of-the-art wireless tracking device that has stolen-vehicle recovery (SVR) technology, enabling Discovery Insure to locate and recover stolen vehicles. The Crowd Search Sensor includes all the Vitality Drive Sensor technology, including safety features, rewards and immediate feedback through the Discovery Insure app. In addition, clients will have additional safety through the Crowd Search stolen-vehicle recovery. In the event of theft, clients will need to call our call centre to initiate the recovery services. After that, the device in the client’s vehicle will connect to our wireless network to alert Discovery Insure of the vehicle’s location, facilitating recovery. The stolen-vehicle recovery premium for the Crowd Search Sensor is R99 a month for each vehicle. If the client already has an approved third-party stolen-vehicle recovery unit in their vehicle, they will not have to pay the stolen-vehicle recovery fee for their Crowd Search Sensor.

Standalone DQ-Track safety features The following safety features are provided automatically with the standalone DQ-Track. Nationwide vehicle tracking Nationwide stolen-vehicle tracking and recovery that helps protect your client’s vehicle against theft. Stolen-vehicle recovery comes at a fee of R99 a month for each vehicle. Clients must make sure that their standalone DQ-Track device is always in working condition to benefit from safety features. Clients must check every six months that their device is working. If any continuous problems or defects are identified clients need to contact us to arrange a time and place for them to have their standalone DQ-Track checked, fixed or reinstalled as quickly as possible. Geo Zones (preferred area) Clients can select certain safe areas for the vehicles on their plan. As soon as the vehicle exits the safe area, they will get an SMS, allowing them to contact the driver of the vehicle to provide help if needed. Clients can access this functionality by logging in to www.discovery.co.za.

Drive Coach Drive Coach allows clients to get real-time feedback on their driving. If a client selects this benefit, they will receive an SMS at no cost to them every time they have a harsh acceleration, braking or cornering event for a once-off 30-day period. Drive Coach is optional and at no additional cost. Clients can select Drive Coach on www.discovery.co.za and, once selected, can opt out at any time. Unique driver profiles (Driver DNA) Each driver has a unique driving profile. The standalone DQ-Track allows us to identify in real time when your client’s car is being driven in a significantly different manner than normal. When this happens, it is probable that the client’s car has been hijacked or stolen, since the unique driver profile of a person driving a stolen vehicle is very different to normal driving behaviour. In such instances, we will immediately call the client to provide the necessary assistance.

Technical Details

▪ Safety features will work provided the client’s telematics device is in working order and in an area with cellular network coverage.

▪ Vitality Drive Sensor and Crowd Search Sensor: to make sure we can assist your client in an emergency, their smartphone should have at least 15% battery power and the following

settings should always be active: GPS, Bluetooth, mobile data (even if they have selected to upload their trips by Wi-Fi only), and background app refresh.

▪ A severe impact on a vehicle could damage the telematics device, preventing Impact Alert from working. So, in the event of an accident, clients






of 249

Confidential

should always call Discovery 911 on 0860 999 911. By calling immediately, clients are assured of receiving correct care and assistance in the quickest manner possible.

▪ If the client’s policy is in Gap in cover, they will still have access to our safety features and emergency assistance at their own expense.

Vitality Drive Telematics Devices

To get the most from Vitality Drive, clients need to install one of our leading telematics devices that measures how

they drive and provides our vehicle safety features. A once-off activation fee of R150 will apply and will be debited

with the client’s first premium.

Benefits and features of Vitality Drive telematics devices Telematics devices unlock a range of benefits and features. ▪ Our telematics device measure the following

aspects of driver behaviour: acceleration, braking, cornering, speed, time and location of the trip, distance, and cellphone use (with the Vitality Drive Sensor and Crowd Search Sensor). The information is used to determine clients’ driving behaviour, which is a complete measure of how they drive. To measure clients’ driving behaviour and be rewarded for driving well, each primary driver needs to have a telematics device installed in their car.

▪ Our telematics devices enable clients to enjoy our range of vehicle safety features: Impact Alert, weather warnings, Find my vehicles and the vehicle panic button.

▪ Clients with a telematics device installed in their vehicles also have the ability to use their trip information for SARS logbook purposes.

▪ Telematics devices can make certain contract requirements easier for clients. Specifically, vehicle pre-inspection and stolen-vehicle tracking and recovery (SVR) requirements. The details of these are explained below.

How do we use a client’s Vitality Drive telematics device information? The main purpose of recording driving activity is to measure driver behaviour and incentivise clients to improve their driving by rewarding them, for example, with up to 50% of their fuel cash back each month. ▪ We do not use Vitality Drive telematics device

information in the event of a claim other than to confirm the time and place of an incident. Clients may ask us to use the information to help prove that another party was at fault.

▪ We use the telematics device to help clients insure their assets correctly and receive the best cover possible. For example, if we notice that two vehicles with the same primary driver listed for both are routinely driven at the same time,

we will contact the client to confirm the primary driver for each vehicle.

▪ The client’s monthly driving behaviour points may be used as one of the factors considered in plan renewal every year.

▪ Clients can use their telematics device information to draw a report showing all their business trips which they can use when submitting their income tax returns to SARS.




of 249

Confidential

Telematics device options Discovery Insure offers the following telematics devices:

Vitality Drive Sensor This option consists of the Discovery Insure app for Android and iOS as well as a Vitality Drive Sensor that is installed in the client’s vehicle and linked to the app. The Vitality Drive Sensor can only be used with certain compatible smartphones. This device uses the latest telematics technology and makes it really easy for clients to improve their driving behaviour. With this device, clients receive driver behaviour feedback after each trip. Clients can compete with friends and earn additional Vitality Drive points for staying safe by not using their cellphone while driving.

Crowd Search Sensor If clients require stolen-vehicle recovery (SVR) as an underwriting requirement, they will have the Crowd Search Sensor installed in their vehicle. This device is the same as the standard Vitality Drive Sensor and it also consists of the Discovery Insure app for Android and iOS; however, the Crowd Search Sensor is installed in the client’s vehicle and linked to the app. It has enhanced SVR technology for an additional monthly fee. Clients can also choose to have the Crowd Search Sensor installed even if they do not require SVR.

However, they will still need to pay the monthly SVR fee.

Standalone DQ-Track Clients will get a standalone DQTrack if their smartphone is not compatible with the Vitality Drive Sensor or Crowd Search Sensor. This device is deep-installed into the client’s vehicle and automatically includes stolen vehicle recovery for a monthly fee. Clients receive driver behaviour feedback monthly by email every month and get access to other benefits such as Geo Zones and Unique driver profiles.

See the list of compatible smartphones.

How the Vitality Drive Sensor, Crowd Sensor and the standalone DQ-Track compare.

Vitality Drive and Crowd Search Sensor

Standalone DQ-Track

More Vitality Drive points

Easier to improve (real-time feedback and the ability to compete with friends)

Easy and quick installation

Impact Alert

Weather warnings

Vehicle panic button

Find my vehicles

Logbook

SVR technology *

Geo Zones

Drive Coach

Driver DNA (Unique driver profiles) *If client chooses the Crowd Search Sensor

https://www.discovery.co.za/wcm/discoverycoza/assets/faz/car-and-home-insurance/compatible-smartphones-list.pdf




of 249

Confidential

Helping your clients choose the correct telematics device When discussing the Vitality Drive telematics options with your client, we suggest that you have the conversation as follows: To get the most from the Vitality Drive programme, you need to install one of our telematics devices that measures how you drive and provides our safety features. A once-off activation fee of R150 will apply, which is payable with your first premium. The easiest way to earn the most Vitality Drive points is with our Vitality Drive Sensor, which: ▪ Gives you immediate feedback on your driving. ▪ Allows you to compete with friends. ▪ Enables you to earn additional points for not using your cellphone while driving. ▪ Is simple to install. All you need to do is:

▪ Download the Discovery Insure app on your Apple or Android smartphone. ▪ Go to a Tiger Wheel & Tyre branch or a Discovery Insure Drive Centre to collect your Vitality Drive Sensor. ▪ Install our Vitality Drive Sensor in your car, which only takes a few minutes.

We have included the flow diagram below to help you assist your clients choose the right telematics device according to their needs.




of 249

Confidential

Note that Crowd Search is an optional telematics device even without an SVR underwriting requirement. However, if chosen, clients will have to pay the SVR fee unless they already have an approved third-party SVR unit in their vehicle.

Activation fee When a client selects Vitality Drive, they will pay a once-off activation fee for their telematics device of R150 which is debited with their first premium. This R150 activation fee is once-off on each plan, regardless of how many telematics device installations are done on the plan. Exceptions to the once-off activation fee: ▪ If the client chooses to install both the Vitality

Drive Sensor and the standalone DQ-Track in one vehicle. In such cases, the once-off fee is R300 (again, regardless of how many telematics devices are installed on the client’s plan).

▪ If the client chooses to switch from one telematics device type to another, they will be charged another R150 at the time of the switch (limited to a total fee of R300 on a single plan).

Installation process If a client does not have a telematics device installed, they will not be able to earn monthly driving behaviour points or receive rewards based on their driving behaviour. They will also not earn their monthly fuel cash back. The client’s Vitality Drive membership may be cancelled as a result. The client needs to make sure that their device is working by checking it every six months.

Vitality Drive Sensor and Crowd Search Sensor The sensors do not require an appointment for installation. On activation of the Vitality Drive programme, clients will need to download the Discovery Insure app on their smartphone. They will then need to go to their nearest Tiger Wheel & Tyre or a Discovery Insure Drive Centre to collect their Vitality Drive Sensor. Clients install the Vitality Drive Sensor in their car by attaching it to the inside of their windscreen, behind the rear-view mirror. For the Crowd Search Sensor, a technician will need to install it by hiding it in the client’s vehicle. The Crowd Search Sensor does not need wiring into the vehicle system. As a result, it has a quicker installation than the standalone DQ-Track and it does not use power from the car battery. If clients require SVR as a risk management requirement, as part of the Discovery Insure agreement, clients are required to have a working tracking device in their vehicle within five days of their cover starting. Clients therefore need to install their Crowd Search Sensor within this timeframe. If they do not do the installation within the five days, the client’s vehicle may not be covered in the event of a claim. Clients then need link their Vitality Drive Sensor or Crowd Search Sensor to the Discovery Insure app.




of 249

Confidential

The following settings should always be enabled on the client’s smarthpone for the app to function correctly: Android

▪ Accept all permissions ▪ GPS and location services (Android devices must

be in high accuracy mode) ▪ Mobile and cellular data ▪ Bluetooth ▪ The following setting must be deactivated:

▪ Mock location services ▪ Battery saver mode

iOS

▪ Accept all permissions ▪ Location services (clients on iOS 13 need to allow

for this in background and will need to accept on each pop up)

▪ Bluetooth ▪ Mobile data ▪ Background app refresh must be switch on for

the Discovery Insure app, Vitality Drive Sensor and Crowd Search Sensor

Clients can also complete their Tiger Wheel & Tyre Annual MultiPoint check for R95 at the same time, boosting their fuel cash back percentage and giving them up to 150 Vitality Drive points each month for their first year.

Standalone DQ-Track On activation of Vitality Drive with the standalone DQ-track, the client will get an email with a link to schedule their DQ-Track installation. The client can schedule a standalone DQ-Track installation by following the link provided in the email and then logging in with their Discovery website (www.discovery.co.za) username and password or by calling 0860 751 751. As part of the Discovery Insure agreement, clients are required to have a working tracking device in their vehicle, within five days of their cover starting. This can be a Discovery Insure standalone DQ Track or another approved tracking device, if the client does not have a compatible smartphone. If the client does not do the installation within the five days, their vehicle may not be covered in the event of a claim. If the client cancels their appointment with less than 24 hours’ notice or they are unable to fulfil their appointment on the day, they will need to pay a cancellation fee of R150. If the client has a Purple or Classic Plan and lives in a main metropolitan area, they can choose to have their standalone DQ-Track installed at their preferred location. Where this service is not available, we will let the client know of the nearest installation branch where they can take their car to have the device fitted. If the client is on the Essential Plan, they will need to have their device installed at their nearest fitment centre. The standalone DQ-track is installed by a skilled technician who hides the device inside the client’s vehicle. The installation will take approximately two to three hours.

Tracking device installation requirements If the client needs to have a tracking device installed in their vehicles as a cover requirement, they need to have a functioning early-warning tracking device installed within five days of their Discovery Insure start date, otherwise their vehicle may not be covered in the event of a claim.





of 249

Confidential

Vehicle pre-inspection requirements All vehicles, except brand new vehicles, insured by Discovery Insure need to complete a pre inspection within five days of their date of commencement. Clients can do their own vehicle pre-inspection in one of the three ways: ▪ Through the Discovery app by taking the required photos of their car and submitting them to Discovery Insure

through the Discovery app. ▪ Alternatively, clients on the Vitality Drive programme can have their pre-inspection done when they complete

their Annual MultiPoint check at Tiger Wheel & Tyre (it will be included in the R95 cost). ▪ Clients can also complete their vehicle pre-inspection at their nearest Discovery Insure Drive Centre. Clients who install standalone DQ-Track will have the pre-inspection done at the same time as the installation, provided the installation is done within the five days of starting a Discovery Insure plan. If their installation is after the first five days, clients need to do their vehicle pre-inspection using one of the ways listed above. Clients who fail to meet the vehicle pre-inspection requirements within the stated timeframes may have their future claims rejected. Please see further details under the subsection Pre-inspection under the section Cars.

Vitality Drive telematics devices summary

Telematics devices

One-off activation fee (for each plan)

Installation process Measuring driving behaviour

Safety features

Vitality Drive Sensor and Crowd Search Sensor

R150 Clients will need to collect their sensor from their nearest Tiger Wheel & Tyre or Discovery Insure Drive centre, install the sensor in their car, download the Discovery Insure app and link the app to their sensor.

Clients can earn up to 1 100 Vitality Drive points, which includes measuring cellphone use. Drivers get real-time driving feedback and can compete with other drivers

▪ Impact Alert ▪ Weather warnings ▪ Find my vehicles ▪ Vehicle panic

button ▪ Stolen vehicle

tracking and recovery technology (only available on the Crowd Search Sensor for an additional monthly fee of R99 a month).

Standalone DQ-Track

R150, unless both the Vitality Drive Sensor and standalone DQ-Track devices are installed in one car, then R300.

Clients will need to schedule a standalone DQ-Track installation by logging in to www.discovery.co.za. The installation will take approximately two to three hours as the device needs to be deep installed inside the car.

Clients can earn up to 950 Vitality Drive points.

▪ Impact Alert ▪ Weather warnings ▪ Find my vehicles ▪ Stolen vehicle

tracking and recovery technology (for an additional monthly fee of a month).





of 249

Confidential

When will driving data reflect Depending on the distance travelled and telematics device option, it can take up to three weeks to determine an accurate score. The standalone DQ-Track will take between one and three weeks to determine the client’s driving behaviour points, while the Vitality Drive Sensor and Crowd Search Sensor will take a few days to determine it. Note that clients’ Driving Profile will be pro-rated based on the remaining days of the month. Clients will also receive the default Monthly points for distance and night-time driving of 165 Vitality Drive points where they have less than seven days of driving data or they are waiting for their standalone DQ-Track installation appointment.

Cancelling cover or switching vehicles When a client cancels their cover with us or changes their insured vehicles, they need to make sure that we are able to remove the standalone DQ-Track from their vehicle, otherwise they will be responsible for additional costs. The standalone DQ-Track remains the property of Discovery Insure. Clients will be required to pay a R1 180 penalty if the device is not de-installed if any of the following occurs: ▪ The insured vehicle is sold to a third party and no

arrangements are made with us to remove the device or if arrangements to remove the DQ-Track are made but we are not able to retrieve the device for reasons beyond our control.

▪ The client fails on any of the following: ▪ A payment due to Discovery Insure. ▪ Other commitments the client needs to

fulfil as a Vitality Drive member or Discovery Insure planholder.

▪ The client misuses, abuses or tampers with the device in any way.

▪ The client or a third party prevents us from removing the device.

▪ The client chooses to end their Vitality Drive membership.

If the device is not de-installed, we will recover the R1 180 penalty in one of these ways: ▪ If the client remains a Discovery Insure client (for

example, if they change their vehicle) we will recover the penalty in one of these ways:

▪ Any fuel cash back due to the client ▪ The client’s Insure Funder Account ▪ The client’s premium-paying bank

account. ▪ If the client cancels their plan, we will recover the penalty from:

▪ Their premium-paying bank account ▪ Any money due to the client from Discovery

Insure To have their standalone DQ-Track de-installed, clients must make an appointment by calling 0860 751 751 or make an appointment online.

Technical Details

▪ If we do not receive payment 30 days after a client cancels their plan, we will follow a credit control process, which may lead to the client being blacklisted.




of 249

Confidential

Testing the telematics device Clients should test their telematics device regularly to make sure it is working. Any defects should be reported to Discovery Insure immediately.

Testing the Vitality Drive Sensor or Crowd Search Sensor To benefit from the safety features offered by the Vitality Drive Sensor and Crowd Search Sensor and earn fuel cash back for driving well, clients need to make sure that their sensor is always in working condition. Clients can check if their Vitality Drive Sensor is connected in one of two ways as detailed below. Method 1

Clients can see if the Vitality Drive Sensor or Crowd Search Sensor is connected while driving by seeing the blue bar in the Discovery Insure app (on the dashboard) that says Sensor Connected. This will only appear while the clients is driving. Method 2

In the Discovery Insure app, select Menu and then select Vehicle Sensors. On the top right, tap on the three dots then tap Sensor Diagnostics. This will show the date and time the client’s phone was last connected to their sensor. Check that the sensor serial number shown is the one that is linked to the client’s vehicle. If the client’s sensor serial number is not shown, they need to contact the DQ-Track team by sending an email to [email protected] or calling 0860 751 751.

Testing the standalone DQ-Track by SMS 1. The client should create a new SMS on their cellphone. 2. Then they must type in the letter T or P. 3. Using the international +27 number format, they must send the SMS to the DQ-Track cell tracking number

given to them during installation. 4. The client will receive an SMS from DQ-Track confirming your car’s location within minutes. 5. The client may not receive the SMS immediately if their car is out of network cover (for example, a remote

area where signal cover is poor, like a parking basement).

Testing your standalone DQ-Track online with DQ Mapper 1. The client must log in to www.discovery.co.za with their Discovery username and password. 2. Then they must navigate to the Car and Home Insurance tab and click on DQ Mapper. 3. Then click on Access DQ Mapper. 4. A new window will appear showing a map and a list of cars on the client’s plan that have a DQ-Track installed. 5. The client must click on any of these vehicles to see their location.

Ctrack terms and conditions Because Ctrack installs and administers the standalone DQ-Track, it is important that clients make sure they have read and familiarised themselves with Ctrack’s service terms and conditions. Clients agree that Discovery Insure and Vitality Drive will not be held legally responsible for any damages, claims, losses or expenses resulting either directly or indirectly from, or in connection with any of Ctrack’s terms and conditions. Clients also agree that, if they break any of these terms and conditions, they will not hold Discovery Insure and Vitality Drive responsible.

mailto:[email protected]%20?subject=Telematics%20device%20sensor%20serial%20number%20not%20showing


https://www.ctrack.com/za/wp-content/uploads/2019/10/CONTRACT-TERMS-AND-CONDITIONS-V1.11-2019-01.pdf




of 249

Confidential

Responsibility restrictions Discovery Insure and Vitality Drive does not warrant or take responsibility for any loss, damage, loss of profits, business or revenue clients might experience because of: ▪ Any type of delay, fault or other failure that is caused by service, as well as hardware installation or operation.

This also counts for radio communication or GSM network in the area that functions with the hardware or other aspects of your DQ-Track, such as Unique driver profiles, vehicle panic button or Impact Alert.

▪ Any negligence on the part of Discovery Insure, Vitality Drive and our employees. Disclaimer Unless prohibited by law, clients agree not to hold Discovery Insure and Vitality Drive responsible for any loss or damage caused to you or any third party arising from the service provided by Discovery Insure and Vitality Drive, our service providers, agents and employees. You also agree not to hold Discovery Insure and Vitality Drive responsible if we are not able to perform the service for any reason, including any type of negligence.

Vitality Drive for Motorcycles

Clients who insure their motorcycle with Discovery Insure, have the option to select the Vitality Drive programme and get rewarded for their motorcycle riding behaviour.

The Vitality Drive programme for motorcycles differs from the standard Vitality Drive programme, depending on whether the client has a comprehensively insured car on their Discovery Insure plan or whether the only vehicle they insure on the Discovery Insure plan is their motorcycle.

If the motorcycle is insured with other vehicles Clients can select the Vitality Drive programme for motorcycles if they have activated Vitality Drive on their Discovery Insure plan. Vitality Drive for motorcycles is optional, even if Vitality Drive is activated on the Discovery Insure plan. Clients only have the option to install the Vitality Drive Sensor. However, all vehicles (including motorcycles) for which a primary driver has been listed need to have a working device installed in them for the primary driver to earn fuel cash back. So the client must install the Vitality Drive Sensor in their motorcycle, if they choose activate Vitality Drive for their motorcycle. Once a client selects Vitality Drive for their motorcycle, the following will apply: ▪ They won’t pay an additional Vitality Drive premium ▪ Their motorcycle will be considered as another vehicle for Vitality Drive purposes, which means:

▪ The client will receive a maximum of 25 Drive points each day. Driving events from both the client’s motor vehicle and motorcycle will be deducted from their daily Drive points allocation. This means that if the client drives both their motor vehicle and motorcycle on the same day, Drive points will be deducted based on their driving behaviour from both vehicles.

▪ The client only need to take one vehicle to Tiger Wheel & Tyre and pass the Annual MultiPoint check to boost their cash back percentage and earn Vitality Drive points. This vehicle must be their car.

▪ The client can earn Vitality Drive points for the Discovery Insure driving courses by completing any of the available courses including the Online driver training and earn 150 Vitality Drive points for 12 months or a BMW Rider Academy course. Clients can either select a half-day Refresher course or a Proficient Safety Skills course for 150 Vitality Drive points a month for 24 months. All other activities that earn Vitality Drive points remain the same.

Motorcycles can be added to a policy with the Vitality Drive Drive your Discount reward option after the activation of a policy. If your client is the primary driver of the motor vehicle and the motorcycle, the motorcycle’s premium will receive the same discount. Motorcycles need to be supported by a comprehensively insured motor vehicle on Drive your Discount at all times to benefit from Vitality Drive.




of 249

Confidential

If the motorcycle is the only vehicle insured Clients can join the Vitality Drive fuel cash back option for R68 a month for each primary driver if their only vehicle is a motorcycle and they have insured their household contents or buildings for at least R250 000. Clients cannot join Vitality Drive through Drive your Discount if their only vehicle insured is a motorcycle. Clients only have the option to install the Vitality Drive Sensor. However, if they do not select to install the device or if they do not have a compatible smartphone, they will not be able to earn a cash back as they need to have a working device installed.

Once a client selects Vitality Drive for their motorcycle, the following will apply: ▪ The client will need to take their motorcycle to

Tiger Wheel & Tyre and pass the Annual MultiPoint check to boost their cash back percentage and earn additional Vitality Drive points.

▪ The client can earn additional Vitality Drive points for the Discovery Insure driving courses by completing either the Online driver training to earn 150 Vitality Drive points for 12 months or a BMW Rider Academy course. Clients can either select a half-day Refresher course or a Proficient Safety Skills course for 150 points a month for 24 months. All other Vitality Drive points earning activities are the same.

Vitality Drive programme rewards and safety features for motorcycles The following cash back percentage will apply for the Classic, Purple and Essential Plans on the Vitality Drive fuel cash back options.

Monthly cash back

Immediate cash back Up to 10%


Up to 25%

The Vitality Drive points for drivers of motorcycles will be calculated using the same methodology as that used for calculating Vitality Drive points for cars. All the Vitality Drive programme’s rewards will apply to riders of motorcycles who belong to the Vitality Drive programme, including the Young Adult benefit. Where the client’s only insured vehicle is a motorcycle, the Essential Plan rules for the Young Adult benefits will apply. Impact Alert, Crowd Search and safety alerts are not available with the Vitality Drive programme for motorcycles.




of 249

Confidential

Vitality Drive Example

Client selects the Vitality Drive programme John joins Discovery Insure and activates the Vitality Drive programme with the fuel cash back reward option for an additional monthly premium. For each car covered on the plan, John needs to install a telematics device to help maximise his cash back and benefit from Discovery Insure’s unique safety features.

Which option should John choose? To get more value, John should select the Vitality Drive Sensor. This option is easier to engage with and improve his driver behaviour as he gets immediate feedback after his trips and can compete with his friends. It also has an additional safety feature, the vehicle panic button. If John does not have a compatible smartphone, he can install the standalone DQ-Track, which automatically comes with stolen vehicle tracking and recovery for an additional monthly fee. John will only be able to earn 600 Driving Profile points a month, instead of 750 Vitality Drive points, since the standalone DQ-Track is unable to measure cellphone use. John has a compatible smartphone and does not need stolen vehicle tracking and recovery, so he chooses the Vitality Drive Sensor because: ▪ It is the most cost-effective option. ▪ He can earn the most points possible. ▪ He gets immediate feedback, making it easy for him to improve his driving behaviour. ▪ He can compete with friends. ▪ He benefits from Vitality Drive programme’s state-of-the-art vehicle safety features including a vehicle

panic button.

Client installs the Vitality Drive Sensor John therefore decides to take the Vitality Drive Sensor to maximise his cash back. He goes to his nearest Tiger Wheel & Tyre branch to collect and install his Vitality Drive Sensor.

Primary drivers must link their Vitality

Drive card and Gautrain Swift card John will also receive his Vitality Drive card with his Vitality Drive Sensor installation. As a primary driver, John needs to provide his Vitality Drive card and Gautrain Swift card details to Discovery Insure by linking his card on the app or entering his card details online on www.discovery.co.za to make sure that he receives cash back on his Gautrain spend as well as his fuel spend.

Client swipes card and maximises

cash back John can swipe his Vitality Drive card at BP or Shell to earn his fuel and Gautrain cash back. He decides to receive his cash back in cash each month instead of transferring it to his Insure Funder Account. If John has other primary drivers on his plan, they would all belong to Vitality Drive at an additional monthly premium for each primary driver and each one would be able to earn fuel cash back of up to R800 a month. John completes other knowledge and awareness and vehicle safety activities to earn more Vitality Drive points and therefore maximise his cash back earned. John drives well and earns a Vitality Drive status. As a result, he will earn status-based rewards including Tiger Wheel & Tyre and Bosch discounts and discounted child car seats. He also earns Active Rewards for meeting his personalised weekly Active Rewards drive goal.

Summary of rewards John can earn

Vitality Drive points

Vitality Drive status

Fuel cash back

Car seat discounts

Tiger Wheel & Tyre

Tyre spend funded by

IFA

Discounted car maintenance and

servicing with Bosch

1 000 to 1 600 for rolling 12 months and claims free for 12 months

Diamond Up to R800 50% 20% 100% 20%

1 000 to 1 600 Gold Up to R800 35% 15% 70% 15%

600 to 999 Silver Up to R500 30% 10% 35% 10%

300 to 599 Bronze Up to R300 25% 5% 10% 7.5%

0 to 299 Blue Up to R150 20% 2.5% 5% 5%




of 249

Confidential

Motor vehicle insurance




of 249

Confidential

Discovery’s motor insurance

What will be covered in this section?

Basics of short-term insurance Discovery Insure

▪ How are motor vehicles covered?

▪ Excess

▪ Which values are used when insuring a vehicle?

▪ Driver options

▪ What is not covered?

▪ Misrepresentation or incorrect disclosure

▪ Risk management

▪ Territorial limits

▪ Salvage

▪ Fire cover

▪ What is motor insurance

▪ Events that are covered

▪ How are vehicles covered for a loss

▪ The 4 Discovery Insure Plan options

▪ Driver options

▪ Vehicle usage

▪ Excess amounts

▪ Benefits

▪ Optional benefits

▪ Exclusions

Important terms you need to understand

Market value

The average of the retail value and trade value of the vehicle.

Nominated value

The value that the client has given to Discovery Insure and which they believe to be the current

retail value of their vehicle, should they sell it. This value is shown in the Plan Schedule as the sum

insured.

Retail value

The value that the motor vehicle can generally be bought for, from a recognised member of the

motor vehicle trade industry. This value is obtained from the Auto Dealer’s Guide published by

TransUnion Auto Information Solutions (Pty) Limited, or any similar publication approved by

Discovery, and that has been adjusted for mileage and condition.

Trade value

The value that the motor vehicle can be sold for, to a recognised member of the motor vehicle

trade industry. This value is obtained from the Auto Dealer’s Guide published by TransUnion Auto

Information Solutions (Pty) Limited, or any similar publication approved by us and that has been

adjusted for mileage and condition.




of 249

Confidential

What is motor insurance? This type of insurance is purchased for cars, trucks, motorcycles and other road vehicles including caravans.

Motor insurance provides financial protection against physical damage to the insured vehicle as well as

covering physical damage to other parties involved in the accident.

Discovery’s motor insurance Discovery Insure will provide cover for:

▪ Motor vehicles that do not weigh more than 3 500kg; or

▪ Motorcycles, quad bikes and similar vehicles, trailers and caravans.

Discovery motor vehicle insurance is subject to:

▪ The client having insurable interest in the vehicle.

▪ Vehicle drivers with the minimum age of 18 and a minimum age of 16 as a motorcycle driver.

Discovery Insure provides three types of cover:

▪ Comprehensive cover

▪ Third party, fire and theft cover

▪ Third party only cover

The table below compares the cover available on the different plan types:

Comprehensive

plan type

Full third

party, fire

and theft

plan type

Third party

only plan

type

1 Own damage to vehicle caused by

collision Yes No No

2

Vehicle damage by fire, self-ignition,

lightning, explosion, theft or

attempted theft

Yes Yes No

3

Liabilities to third party or claims

made by other persons against the

insured

Yes Yes Yes

4 Windscreen damage

Yes No No

▪ If the client only insures a motorcycle on the policy and no motor vehicle with it, then he

needs to add on a minimum household content value of R100 000.

▪ If the client wants to add on Vitality Drive, then he needs to increase the sum insured to

R250 000.




of 249

Confidential

Events that are covered

Loss of or damage to a vehicle

Plan type Extent of cover in relation to loss of or damage to a vehicle

Comprehensive

▪ Covered for theft, hijacking, hail, storm, collision, fire, lightning,

explosions, malicious or accidental damage

▪ Sound equipment

▪ Third party liability

Third party, Fire

and Theft

▪ Third party liability

▪ Covered for theft, hijacking, fire, lightning or explosions

▪ Malicious and accidental damage is excluded

▪ Sound equipment

Third Party ▪ Third party liability - this excludes medical costs as they form part of the

ambit of the Road Accident Fund

▪ Does not cover loss of or damage to own vehicle

Windscreen and window glass damage

Windscreen damage and/or replacement will only be covered where the vehicle is covered comprehensively.

The table below shows the situations where an excess may be payable:

Discovery Insure approved

service provider

Service provider outside the

Discovery Insure approved

repairer network

Windscreen

repairs

▪ No excess payable

▪ Not considered a claim

▪ Excess may be payable.


Windscreen

replacement

▪ Discovery Insure will cover the

cost of replacing the windscreen

less the excess (R750). IFA may be

utilised


▪ Discovery Insure will cover the

reasonable cost of replacing the

windscreen less the excess (R750).

IFA may be utilised


Not all windscreen claims are not considered a claim. Example: A client may be driving a

sports car where the windscreen will need to be imported and can only be fitted by a specialist.

In this instance, due to the cost of replacing the windscreen and the labour costs involved,

Discovery Insure may consider this a claim.




of 249

Confidential

Third Party Liability

What is covered? When clients become legally liable to pay for

expenses due to:

▪ Accidental death, bodily injury or loss or

damage to property due to an insured

event

▪ While driving a vehicle that does not

belong to the client or a member of their

household

▪ Allowing any other person to drive the

client’s vehicle

Cover provided if: ▪ Such use was with the client’s express

permission

▪ They are not covered by any other contract

▪ They have not been refused insurance cover

▪ They comply with all the terms and

conditions applicable to the policy

What is not covered? ▪ Third party liability will not compensate clients for damage to:

▪ The vehicle or property being carried by the vehicle that does not

belong to the client

▪ Rented vehicles, or

▪ Vehicles insured by another insurance company

Events not covered

▪ Any claim covered by the Road

Accident Fund

▪ Death or bodily injury to:

▪ Any consequential loss

▪ Where the vehicle is driven

without the client’s permission

▪ Medical costs incurred by third

parties

▪ Damage to property:

▪ A member of your household, or a member of your

family;

▪ Any person, other than your domestic staff that works

for you, if the death or bodily injury arises from and in

the course of their employment;

▪ Any person carried in or on a caravan or trailer

attached to the motor vehicle;

▪ Any passenger if the vehicle is being used as a taxi;

▪ Any person in or on or getting on or off from the back

of an open-backed vehicle, scooter, motor cycle, quad

bike or three-wheeled motorcycle; or

▪ Arising out of the spread of fire when a motorcycle,

three wheeler, quad bike or all-terrain vehicle is being

used off-road.

▪ Belonging to you or any member of your household or in your custody or control or the custody and

control of any member of your household; or

▪ Being carried in or on a caravan or trailer.




of 249

Confidential

How is a vehicle covered for loss or damage?

A client may choose to insure their vehicles as follows:

▪ If the nominated value is selected, it is up to the client to ensure that Discovery Insure has the current

retail value of the vehicle. The nominated value must at least be updated on each anniversary date of

the contract.

▪ If the client is still paying their vehicle off they must insure it for the retail value which is the highest

value, they can insure their vehicle for.

The retail value is obtained from the Auto Dealer’s Guide published by TransUnion Auto

Information solutions (Pty) Limited, or any similar publication approved by Discovery and that has

been adjusted for mileage and condition.

Retail value vs market value

It’s important to note that the retail value is higher than the market value and therefore

provides the client with better cover. Retail and market values change all the time so they

won’t reflect as a Rand amount on the client’s Plan Schedule.

The nominated value

The nominated value option is only applicable to cars which are not frequently traded and for

which no value can be determined using the Auto Dealer’s Guide, for example, a 1964 Aston

Martin.




of 249

Confidential

What happens when the clients claim?

Repairable Written off, including stolen or hijacking

Retail/market

value Discovery Insure will pay

the cost of the repairs to

the vehicle, less the

excess

▪ If vehicle is < 12 months old, Discovery

Insure will pay the replacement value of a

new vehicle of similar make and model at

the date of loss, less the excess.

▪ For Purple Plan clients, if their vehicle is < 24 months old from first registration, Discovery will pay the replacement value of a new vehicle of similar make and model, at the date of loss, less the excess.

▪ If vehicle is > 12 months old, Discovery

Insure will pay the market or retail value at

the date of loss, depending on the cover

option that was chosen, less the excess.

▪ Discovery Insure will not pay for carbon

emissions tax or on the road taxes for new

vehicles.

Nominated value

Discovery Insure will pay

the cost of the repairs to

the vehicle, less the

excess

▪ Discovery Insure will pay the retail value at

the date of loss of the vehicle, less the

excess.

▪ The retail value is determined by taking the

average of three valuations provided by

three independent motor industry sources

of the insurer’s choice.

Extra equipment cover

Some vehicles may be fitted with extra equipment which can either be factory-fitted or non-factory fitted

including equipment such as:

▪ Sound equipment,

▪ Satellite navigation devices,

▪ Tow bars etc.

Clients must specify this equipment when insuring their vehicle as any extra equipment that has not been

specified will not be covered. Extra equipment fitted must be specified if fitted to the standard model of the

vehicle.




of 249

Confidential

How are 4x4 vehicles covered?

▪ 4x4 vehicles are covered for accidental damage (including the suspension) when they’re being used on off-

road trails.

▪ Cover only applies for leisure and recreational use.

▪ Contests and competitive events are not covered.

Wheel and tyre cover

▪ Discovery Insure will replace wheels in the event of an accident however; reasonable wear and

tear of the tyres will be taken into account at claims stage.

▪ Discovery Insure will not cover damage to the rubber of the wheels caused by potholes unless

the rims are also damaged in the same incident.

▪ Discovery Insure will cover theft where only the wheels (tyres and rims) are stolen.

New vehicles

▪ Clients only need to

provide dealer

invoice.

▪ Factory-fitted extras

must be noted

separately with

correct replacement

value on invoice.

Used vehicles

Clients can consult with a

manufacturer-approved

dealership and ask that the

dealership specify, according

to the vehicle’s VIN number,

the exact specifications of

the vehicle. They can identify

which factory-fitted items on

or in the vehicle came with

the vehicle as standard and

are included in the listed

price or what was added pre

or post-delivery.

After-market

accessories

After-market would mean

anything fitted after delivery

of the vehicle or motorbike

was taken, which wouldn’t

show on the dealer invoice. If

the client fits after-market

accessories to a new or used

vehicle or motorbike, each

item needs to be specified

separately. Proof of

purchase may be required at

claims stage.

4X4 Benefit for Vitality Drive points

4X4 clients can get 150 Vitality Drive points for 24 months by completing a 4X4

driving course at any of Discovery’s driving course partners.




of 249

Confidential

Driver options – Who is allowed to drive the vehicle?

Selecting the correct driver on the policy

Vehicle usage

When applying for motor insurance a client will need to select the correct use for their vehicle/s. If the

incorrect use of the vehicle/s is chosen, the claim will not be rejected but the planholder will be subject to an

additional compulsory excess. This excess will be equal to 20% of the claim amount.

Private and professional use

Means in addition to social use clients also use their vehicle to:

Travel between home and place of work and occasionally for business purposes (not more than

six occasions in a calendar month).

Cover does not include the carrying of goods for business purposes.

Commercial use is specifically excluded. If a client uses their vehicle as a commercial

vehicle, e.g. as a taxi or a delivery vehicle to deliver eggs, their claim will be rejected.

The primary driver is noted and rated and anyone licensed can drive the

vehicle, with the client’s permission.

The client must give us the correct

information and the correct primary driver details. If

primary driver’s details change, clients need to

notify Discovery Insure immediately to ensure that

their premiums are adjusted accordingly and their

cover is maintained.

A salaried employee who generally drives from home to work and back with the odd

meeting outside of the office or the occasional trip to a client (not more than 6 times per

month). This would exclude reps who visit clients on a daily basis. Visiting clients and trips

outside of the office would have to be out of the ordinary daily experience.

Selecting the correct primary driver

John, aged 55, insures his 18-year old

daughter Jackie’s car with Discovery Insure,

but incorrectly lists himself as the primary

driver of the car. This could lead to the

rejection of any claims that Jackie has

because Discovery Insure has been

charging a premium based on John being

the primary driver.




of 249

Confidential

Business use

Means that in addition to social, private and professional use, your client also uses the vehicle for:

▪ Business purposes such as visiting clients or driving to meetings.

▪ Cover includes the occasional carrying of goods for business purposes (not more than six occasions

in a calendar month).

Excess structures

No-excess benefit There is no excess for claims caused by theft, hijacking, fire, lightning, explosion, storm, hail, snow, flood,

water, earthquake or malicious damage on the Classic and Purple Plans. Other excess features include

(available on all Plans):

▪ For valid accident claims, we will help clients recover their excess from any third party, where the third

party was at fault.

▪ Clients pay no excess in the event that an accident was caused by an insured third party, as determined by

our legal team. To make use of this benefit, clients need to have a telematics device installed in their car.

▪ Clients can use their Insure Funder Account to fund any car claim excess if their claim is more than the

minimum basic excess. Clients can also use their Insure Funder Account to pay for any car hire claims

excess. This includes where a car is hired for leisure purposes or if a car is being repaired.

▪ Clients 55 years and older automatically get a zero vehicle excess.

▪ Windscreen excess details are fully discussed under the heading “Windscreen and window glass damage”

in this training guide. Excess structures are noted on the Excess Annexure. A note should be made that

A good example would include a rep that visits clients throughout the day and travels as

a main purpose of the job. They are not traditionally office bound and tend to travel more than

the normal office employee. Carrying goods for commercial purposes is excluded, an example

of which would be, a flower van or a courier van. This inclusion of ‘goods’ would be secondary to

the job at hand and would not be a regular occurrence.

It is very important that the correct use of the vehicle is selected. Clients who insure their

cars for the incorrect use will have to pay an added excess of 20% of the claim amount. If the

client is not sure which option to select, then they always select one option up e.g. If the client

sometimes uses the vehicle for business purposes, but can never predict whether it would be

more or less than six occasions in a calendar month, then rather select Business use to ensure

that he will always be covered.




of 249

Confidential

for windscreen repairs (not replacements) a R0 excess could apply to all Plans where the repair is done at

an approved Discovery Insure network service provider.

▪ Discovery Insure has a flat, basic excess structure. Complete details of the excess structure features can

be found in the Excess Annexure.

Excess flexibility ▪ Clients can choose their own excess based on their needs. Their premium will be adjusted accordingly.

A higher excess will result in a lower premium and vice versa.

▪ The maximum excess that a client can choose is 20% of the insured value.

▪ Below are four examples of the Classic and Purple Plan excess structures in action:

01 | The standard excess structure

o Basic excess R3 500

o If a client is in a car accident, they need to pay an excess of: R3 500

o Client claims for hail damage and pays an excess of: R0

02 | Client chooses a higher excess (R5 000)



o Client claims for hail damage and pays an excess of: R1 500

03 | Client chooses a lower excess (R1 500)




04 | Client chooses a R0 excess

o Basic excess R0

o If a client is in a car accident, they need to pay an excess of: R0


o The minimum claim amount that a client can submit is R500.

Note: If a claim involves incorrect use of the car, then the client will pay their chosen excess plus

the additional excess of 20% of the claim amount.

Discovery Insure clients who have a Discovery Card, will be able to use their Discovery Miles to fund any

Discovery Insure excess, in the event of a claim.

See the Excess Limit Annexure for full details on applicable excesses across all 4 plan types.




of 249

Confidential

Benefits included

▪ Keys, locks and remote control units

▪ Towing and storage

▪ Repatriation

▪ Recovery costs following theft or hijack

▪ Car hire

▪ Delivery after repair

▪ Emergency repairs

▪ Express repairs

▪ Excess Waiver

▪ Borrowed vehicles

▪ Trauma cover

▪ Damage caused by rats or pests

▪ Vehicle modifications following disability

These benefits are automatically included as part of the Discovery Insure plan

Keys, locks and remote control units

Discovery Insure will cover the loss of or damage to keys, locks and remote control units for an insured

vehicle, however it is limited to the amount in the Benefit Limit Annexure.

Towing and storage

Discovery Insure will cover the combined cost for towing and storage within the borders of South Africa, up to

the maximum stipulated in the Benefit Limit Annexure.

Repatriation

▪ If the planholder has a valid claim for repairs on an insured vehicle outside the borders of the Republic of

South Africa, Discovery Insure will pay for the cost of returning the vehicle to South Africa however, it is

limited to the amount shown in the Benefit Limit Annexure.

Essential Plan

▪ Basic Excess: R4 000

▪ Primary drivers older than 55,

automatically pay zero excess

Classic and Purple Plan

▪ Basic Excess: R3 500

▪ No excess for:

o theft, hijacking, storm, lightning,

explosion, fire, hail, snow, flood,

water, earthquake or malicious

damage

▪ Primary drivers older than 55, automatically

pay zero excess




of 249

Confidential

▪ The client will need to arrange repatriation of vehicles to inside the South African border.

▪ Discovery Insure will reimburse the client for the repatriation costs incurred up to the limit

shown in the benefit limit annexure and take over repatriation of the vehicle once it is within the

borders of South Africa.

Territorial limits

Discovery Insure covers insured events occurring in the following territories:

▪ Angola

▪ Botswana

▪ The Democratic Republic of Congo

▪ Kenya

▪ Lesotho

▪ Malawi

▪ Mozambique

▪ Namibia

▪ Republic of South Africa

▪ Rwanda

▪ Swaziland

▪ Tanzania

▪ Zambia

▪ Zimbabwe

If the vehicle is damaged outside the Republic of South Africa, repairs other than emergency repairs may only

be carried out in the Republic of South Africa.

Recovery costs following theft or hijacking

Discovery Insure will reimburse the planholder for reasonable costs that they incur in the recovery of the

insured vehicle following theft or hijack. Discovery Insure must give consent for the claim to be valid. This

benefit is limited to the maximum stipulated in the Benefit Limit Annexure.

Car hire

Discovery Insure will pay for a hired car:

▪ While the insured vehicle is being repaired or while the vehicle has not been recovered after a theft or

hijacking and Discovery Insure are finalising the claim (limited to a maximum of 30 days).

▪ For vehicles covered comprehensively on the Classic and Purple Plans only.

▪ On the Essential Plan if clients have added car hire to their policies for an extra monthly premium.

▪ Car hire upgrade can be selected on all Plans.

▪ Don’t need car hire: At claims stage clients with car hire cover can exchange their car hire for a R1 500

Uber voucher. Clients with 60 days’ car hire get an additional R1 500 on day 31 if their vehicle is not yet

returned




of 249

Confidential

The Car hire benefit:

Essential Plan Classic Plan Purple Plan

▪ Car hire of up to 30 days, but

this is available at an

additional premium.

▪ Clients who have added car

hire can buy additional car

hire up to a maximum of 60

days for an additional

premium.

▪ Clients can upgrade the hired

car for an extra monthly

premium.

▪ All clients who

comprehensively insure their

cars get up to 30 days’ car

hire at no extra cost.

▪ The type of car provided is a

standard Avis group ‘A’

manual car with power

steering and air conditioning.

An example is a Hyundai i10.

▪ Clients can buy additional car



premium.



premium.

▪ All clients who

comprehensively insure their

cars get up to 30 days’ car

hire at no extra cost.

▪ The type of car provided is a

Toyota sedan or similar car

for up to 30 days in the event

of a claim.

▪ Clients can buy additional car



premium.



premium.

Car hire Uber benefit

Clients who have a valid vehicle claim and car hire cover, but are unable to drive a car due to injury following

an accident, will get an Uber DriveMe package to the value of R5 000 over 60 days as an alternative to their car

hire benefit. The client will have a choice of either car hire or the Uber package, but not both.

This option is not available to clients who do not have the car hire benefit on their Plan Schedule.

Uber services are available in Johannesburg, Pretoria, Durban, Cape Town and Port Elizabeth.




of 249

Confidential

If the planholder had an accident while on holiday in Cape Town and then returned home to

Johannesburg before the repairs are done, Discovery Insure will cover the costs of returning

the insured motor vehicle to the planholder in Johannesburg.

Car hire – Classic and Purple Plan process

Delivery after repair Discovery Insure will cover the cost of delivery of the vehicle to the planholder after a repair.

Car hire

process

1.

Arrange hired car through the

contact centre.

2.

The hired car must be returned within 24 hours of notification of repaired vehicle.

3.

The hired car must be returned if the maximum days have been

reached.4.

The costs of the hired car will only be covered if the

claim was approved.

5.

The client is liable for the hired car costs if the claim

was not approved.

6.

The client will be subject to all the

terms and conditions of Avis

car hire.




of 249

Confidential

Emergency repairs

▪ Should an insured vehicle need emergency repairs during the course of a journey, Discovery Insure

will reimburse the planholder for the cost of these repairs.

▪ The claim must be valid under Discovery Insure’s Motor vehicles, motorcycles, trailers and caravans

section.

▪ These emergency repairs can be authorised without first getting Discovery Insure’s consent however a

full itemised invoice must be provided before a reimbursement will be issued. The amount claimable

is limited to the maximum stipulated in the Benefit Limit Annexure.

▪ The insured should follow the normal claims process if the cost of the emergency repair is more than

the limit in the Benefit Limit Annexure.

Xpress Repairs Clients who submit their car’s minor damage claims online, will have their repairs completed within five

working days of starting the repair. If Discovery does not deliver on this promise, the next month’s premium

for the damaged car is reimbursed to the client.

Xpress Repairs criteria (else normal claims process applies)

▪ Available to all clients after three months of cover.

▪ Damage must be non-structural.

▪ Only damages to two or less parts or four or less panels qualify.

▪ Only accidental and collision damages less than R15 000 qualify.

▪ Exclusions: Glass, mag wheels and pearl colour paint claims.

▪ Xpress Repairs is currently only available in major metropolitan areas (Johannesburg, Pretoria, Durban

and Cape Town - Brackenfell).

The Xpress Repairs process:

Following a minor accident, clients will need to follow the following process to qualify for Xpress Repairs:

▪ The client will need to submit the claim online or through the Discovery app with photos. The client

will get an SMS notifying them if the claim has been approved.

▪ The client will be sent an SMS confirming if the claim qualifies for Xpress Repairs and informing the

client the repairer will contact them. If the client’s claim does not qualify, the normal processes will

follow.

▪ The repairer will contact the client and confirms the booking date.

▪ The client drops off their damaged car at the repairer on the booking date. This is considered the first

working date. Clients with car hire can drive away in an AVIS car or receive a R750 Uber voucher.

▪ The client picks up the repaired car before the end of the fifth working day or their car’s next month’s

premium is reimbursed.

Borrowed vehicles If the vehicle is comprehensively insured and is out of use for service or repair and the client borrows a

vehicle that is not covered by any other insurance policy, Discovery Insure will at the client’s request pay the

owner for loss or damage up to the chosen retail, market or nominated value of his vehicle less any excess. In

the event of a total loss the settlement value of the borrowed vehicle will be adjusted for mileage and

condition. The settlement amount will not exceed that of the client’s vehicle, as shown in the Plan Schedule.




of 249

Confidential

Trauma cover

Discovery Insure will provide professional counselling following a hijacking or major vehicle accident for the

planholder and/or their domestic staff. The amount claimable is limited to sessions per family member and

domestic staff member in a 12-month period. The amount claimable is limited to the maximum stipulated in

the Benefit Limit Annexure.

Damage caused by rats and pests

Discovery Insure will cover damage or loss caused by rats or other pests up to the limits shown in the Benefit

Limit Annexure.

Vehicle modifications following disability

If a primary driver indicated on the Plan Schedule suffers permanent physical disablement as a result of an

accident while driving a vehicle that is comprehensively insured, Discovery Insure will pay to have the primary

driver’s vehicle specially modified up to the amount that is shown in the Benefit Limit Annexure.

This benefit will only apply once per primary driver who becomes disabled.

Optional benefits

These benefits can be added to an insurance contract to enhance the cover. It is important to make sure these

benefits have been selected on the Insure quote as they are not automatically included:

▪ Essential Plan (and motorcycle) car hire

▪ Upgrade the hired car

▪ Car hire extender

▪ Write-off accelerator

▪ Credit shortfall

▪ Retail Value Booster

▪ Purple Plan – MultiVehicle

▪ Vehicle Warranty cover

Upgraded car hire Planholders have the option of upgrading their hired vehicle for an additional premium. Without this upgrade,

a Class A manual transmission vehicle will be supplied, which is a Hyundai i10 or similar type of vehicle.




of 249

Confidential

Retail value booster

▪ The Discovery Insure Retail value booster gives clients, who insure their cars comprehensively for

retail value, the option to be paid 15% more in the event of a total loss (write-off or theft).

▪ The Retail value booster is available at an additional premium to clients who insure their cars

comprehensively.

▪ The option is available either at the plan start date or at any time during the period of cover.

▪ The Retail value booster is only available for vehicles insured for the retail value.

Why should a client opt for the Retail value booster?

▪ If the client insures the vehicle for retail value, they will be paid the retail value, as stated by the Auto

Dealer’s Guide if the vehicle is written off or stolen.

▪ This amount is adjusted for both the mileage and condition of the vehicle.

▪ The information in the guide may not always reflect the true market condition at the time of the loss,

especially if the vehicle is in a better condition than the average car reflected in the guide, ultimately

leaving the client with insufficient funds to replace the vehicle.

▪ If the client has chosen the Write-off accelerator with the Retail value booster, the Write-off

accelerator will determine whether the claim is a total loss or not, based on the retail value of the

vehicle in the guide.

▪ For example, if the client chose the 40% Write-off accelerator and the damage to the vehicle amounts

to 45% of the guide retail value, the vehicle will be considered a write-off. Once the vehicle is written-

off, the client will receive the Retail value booster pay-out.

Retail value booster for new vehicles

▪ If the client selects the Retail value booster for a new vehicle, he will be paid the replacement value in

the event of a total loss in the first 12 months.




of 249

Confidential

▪ Only after 12 months will he receive 15% more than the retail value in the guide.

▪ All vehicles are classified as new within 12 months of their first registration date.

▪ The Retail value booster is available on all Discovery Insure plans, on vehicles that are

comprehensively insured, and may be purchased at the start of cover or at any time while the client is

covered by Discovery Insure.

Write-off Accelerator

▪ Available for all Discovery Insure Plans for vehicles that are comprehensively insured.

o Insured for retail, market or nominated value

o Cars only

o Must have a Telematics device installed

▪ Damage determined as

o Cost of repair / car’s insured value

o Based on a Discovery Insure assessment

▪ Car considered written-off if damage exceeds chosen write-off value: 40% or 50% of the vehicle’s

insure value

▪ Cost of vehicle repair taken as

o Estimated cost of repair at assessment

o Includes all costs relating to the claim

o Excludes assessment, investigation and loss adjustor fees

▪ At 40% or 50% the vehicle will not technically be written off – Discovery Insure might still be able to

salvage some parts and sell it to a third party

▪ The cost of adding the Write-off accelerator to a policy is:

Retail Value + 15% = Retail Value Booster




of 249

Confidential

MultiVehicle benefit This benefit is only available on the Purple Plan and means that the driver, who is the primary driver for

more than one motor vehicle covered by this option, is noted and rated and anyone licensed can drive the

motor vehicles. The premium will be discounted if clients choose this option and the following applies:

▪ All motor vehicles covered under this option must be fitted with a Telematics device.

▪ None of the motor vehicles covered under this option may be in use at the same time.

▪ If more than one motor vehicle is in use at the same time, cover is invalidated.

▪ The Accidental damage premium is based on the value of the most expensive car.

50% of car value 40% of car value

R50 per month R75 per month

Dave selects the 40% Write-off accelerator and the Retail value booster. The current retail value

of his car is R200 000

Dave was involved in an accident

and his car is towed

Write-off accelerator: damage, R83

000, which is more than 40% of the

retail value Dave is paid R230 000 Retail

value + 15%

Retail value

booster




of 249

Confidential

Credit shortfall Is available for clients while there is still a gap between the vehicle value and the statutory settlement balance.

If the vehicle is written off during an insured event, Discovery Insure will pay the settlement value less:

▪ The value of the vehicle; and any amount refundable to the client

▪ Any extra amounts added to the principal debt in terms of the credit agreement after its start date

and any finance charges and interest relating to these extra amounts.

To help with the processing of the credit shortfall claim, the client must:

▪ Give Discovery Insure authorisation to get a copy of the credit agreement or other agreement

between the client and the credit provider, a statement of the client’s account with the credit provider

with a full transaction history and a copy of the credit application;

▪ Give Discovery Insure proof, information and affidavits that may be needed to process the claim; and

▪ Cover the costs of obtaining this information.

If the credit agreement has been terminated, the client will not be entitled to the credit shortfall benefit. It is

also the responsibility of the client to ensure the benefit is cancelled if it is no longer needed.

Discovery Insure Vehicle Warranty cover

The Discovery Insure Vehicle Warranty is the perfect warranty product if your client’s vehicle manufacturer’s

warranty cover is about to expire or has already expired. It offers market-leading, unlimited cover for

mechanical breakdown and electrical failure.

Mechanical breakdown or electrical failure means the breaking or burning out of any of the components listed

in Components covered, because of a mechanical or electrical failure that causes the component to suddenly

stop functioning, needing repair or replacement.




of 249

Confidential

Mechanical breakdown and electrical failure cover

▪ Covers the full cost of repairing or replacing a vehicle’s critical components following unexpected

mechanical breakdown or electrical failure that causes a component to suddenly stop functioning,

needing repair of replacement

▪ Cover is extensive and comprehensively covers 36 critical vehicle components, with no cover limits:

Component Part covered

1 Air-Conditioner Compressor and clutch pulley only

2 Alarms and Immobilisers Original manufacturer fitted unit only

3 Braking System Brake booster, master cylinder, wheel cylinders, callipers, ABS

control unit and sensors, electronic park brake mechanism

4 Cambelt Failure Cambelt and tensioner

5 Casings Engine block, cylinder head, gearbox and differential and drive

unit casings and inlet and exhaust manifolds are covered

in the event of damage being brought about by the failure of

an insured component

6 Central Locking Pump and door actuator only, excluding electrical

failures

7 Clutch Master and slave cylinder, clutch plate, pressure plate,

flywheel, release bearing and clutch fork, dual mass flywheel

8 Cooling System Water pump, welsh plugs, thermostat and oil coolers

9 CV Joints Constant velocity joints, excluding rubber boots

10 Cylinder Head Gaskets

11 Differential All internal components

12 Differential Lock All internal components

13 Drive Pulleys Crankshaft, camshaft, tensioners and jockey pulleys are

covered in the event of Mechanical Breakdown

14 Electric Mirrors Motors only

15 Electric Motors Sunroof and window winder motors excluding winder

mechanism assembly




of 249

Confidential

16 Electrical Components Alternator, starter motor (including ring gear) and windscreen

wiper motors, excluding relays and switches

17 Electrical Winch Electric motor only (applicable to 4x4 vehicles only)

18 Electronic Ignition Coil and distributor, excluding HT leads, spark plugs and

suppressors

19 Emission Control Catalytic converter. Component failure only

20 Engine All internal components, excluding decarbonisation and

blown cylinder head gaskets

21 Entertainment System Original manufacturer fitted radio and CD player, excluding

speakers

22 Free Wheel Hubs Complete units (applicable to 4x4 vehicles only)

23 Fuel System Mechanical and electrical fuel pumps, injectors, airflow meter

lambda probe, air sensor, fuel distributor, throttle body

and pressure regulator

24 Gearbox

Manual transmission: All internal components, plus gear lever

and linkages

Automatic Transmission: All internal components, plus torque

convertor, gear lever and linkages

25 GPS Navigation System Original manufacturer fitted navigation display unit and

navigation control module

26 Management System Engine and transmission management control unit, sensors

and solenoids and EGR valves

27 Phone System Microphone and head unit (original manufacturer fitted only)

28 Prop Shaft (Drive Shafts) Prop shaft, universal joints, centre bearing and couplings,

excluding tube and balancing

29 Radiator Radiator, including heater radiator

30 Steering Mechanism Column shaft, bearings and joints, internal components of the

rack and pinion, steering box, tie-rod ends power steering

pump and reservoir, steering lock, excluding rubber boots

31 Suspension Upper and lower wishbones with associated ball joints,

bushes and springs, including pneumatic suspension




of 249

Confidential

32 Transfer Box All internal components, including gear lever and linkages

33 Transponder Key Original manufacturer fitted unit only and Mechanical

Breakdown only, excluding Electrical Failures and software

downloads

34 Turbo or Compressor

Assembly

Factory approved fitment only, boost control valve and

intercooler

35 Viscous and Electric Fans Engine cooling only

36 Wheel Bearings Front and rear

What clients need to know:

• Clients must have comprehensive Discovery Insure vehicle insurance cover.

• The vehicle must be less than 10 years old and have driven less than 250 000 km.

• The vehicles’ service history must be up to date.

• We offer unlimited cover per insured component, yet all claims are limited to the total sum insured.

If, at inception, the client has an incomplete service history, they must:

• Complete the Bosch 110-point check. If any component of the vehicle fails the check, the policy will

exclude this component and all related components until the client can prove that the part has been

fixed by the Motor Industry Workshop Association (MIWA) or Retail Motor Industry (RMI) approved

dealer. The client should also service the vehicle within 30 days of taking out warranty cover if the last

service was not completed.

• Service their vehicle within 1500 km or 30 days of expiry as per vehicle manufacturer guidelines

because full-service history is part of the qualifying criteria. Its validity will be checked at claims stage.

Why should a client take out a vehicle warranty?

▪ About 56% of Discovery Insure clients’ manufacturer warranty cover has expired.

▪ The average warranty claim costs R11 960.

▪ 21% of cars have a warranty claim every year.

Why should a client opt for Discovery Insure’s Vehicle Warranty cover?

The current options in the market are not optimal to meeting clients’ true needs.




of 249

Confidential

The current options in the warranty market are not optimal to meet clients’ true needs.

A new, innovative warranty solution is needed, creating unique sales opportunities for you.

CLIENTS NEED WARRANTY COVER

56% of Discovery Insure clients’ manufacturer

warranty cover has expired

THE CURRENT OPTIONS

ARE NOT OPTIMAL

Clients can currently choose between 2 options

to extend their warranty cover

Key differentiators

Discovery Insure Vehicle Warranty Traditional warranty cover

Unlimited cover for mechanical breakdown and

electrical failure

Rand value cover limits per vehicle part, regardless

of the car insured

The average warranty claim

= R11 960

21% of cars have a warranty

claim every year.

MANUFACTURER’S EXTENDED

WARRANTY COVER

OR

INSURER’S EXTENDED

WARRANTY COVER

Clients’ claims exceed the cover limit 30%

of time and force the client to pay R7 700 on

average.




of 249

Confidential

Sophisticated, risk-rated premiums structure, so

clients pay a premium reflective of their own risk

Unsophisticated pricing structure with little price

differentiation, often based on the vehicle’s age and

mileage

Embedded wear-and-tear cover for insured

components

Many insurers do not cover wear-and-tear in their

warranty plans

One simple product to meet all clients’ needs Complex limits for each component, whilst also

offering inflexible product packages, making the

cover difficult to understand

Peace of mind with a flat excess of the clients’ choice Cover limits imposed, forcing clients to pay an

uncertain amount

Additional benefits included at no additional cost

• Optional car hire - Up to 60 days’ car hire, or an Uber voucher to use while the vehicle is being

repaired due to a warranty claim.

• Emergency roadside assistance – In the event of mechanical breakdown or electrical failure or any

other warranty covered claim.

• Comprehensive cover from resultant damage - Cover if an insured component is damaged by the

mechanical breakdown or electrical failure of another damaged component which is not insured by

our warranty cover.

• Consumables - Cover for consumables necessary as an element in a warranty claim (for example, oil

and fluids).

Vitality Drive rewards for driving well

It is the first telematics-based warranty cover, with up to 100% vehicle servicing discounts for driving well.

Using our expertise from our Vitality Drive experience, we can now extend our driver behaviour programme

to the warranty market to reward clients for driving well.

Clients get up to 50% off yearly servicing and maintenance costs, limited to R5 000 spend.




of 249

Confidential

Waiting period waiver

A three-month waiting period applies if there is a gap between the end of a client’s warranty cover from their

manufacturer and the start of their Discovery Insure Vehicle Warranty.

Clients can have this waiting period waived if they complete and pass the vehicle functionality 110-point check

at Bosch or a Discovery Insure Drive Centre at a cost of R600. They will have full warranty cover from the date

of completing the check.

If a client has:

▪ A premium greater than R1 000

▪ A gap between the end of their manufacturer’s warranty cover and the

▪ start of their Discovery Insure Vehicle Warranty.

Then:

▪ The vehicle functionality check at Bosch is compulsory

▪ The R600 fee of the check will be waived upfront.

Terms and conditions:

▪ The client can go to any Retail Motor

Industry(RMI)/ Motor Industry Workshop

Association (MIWA)approved dealer to complete

their service and receive their up to 50%

discount.

▪ If they go to a Bosch/Motus dealership in our

network their discount doubles to up to 100%.

▪ The client must submit their invoice in order to

get their discount paid to them, (if they do not go

to a Motus or Bosch dealership).

Plus, double your discount to

100%, limited to R5 000,

if you service your car at

any Motus Network or

Bosch dealership




of 249

Confidential




of 249

Confidential

General

Conditions for cover

Minimum cover amount

Vehicles valued under R15 000 cannot be comprehensively covered but clients can choose Third

Party only cover as long as there is at least one other vehicle comprehensively insured on their

plan.

Inspection or invoice

Vehicle inspections must be done which are done at the same time that the DQ-Track is

installed. If clients opt not to install a DQ-Track, they will need to take their vehicles to Tiger

Wheel & Tyre to have the vehicle inspected.

Brand new vehicles need not be inspected, but, all invoices must be sent to Discovery Insure

within 3 days of plan activation.

Minimum vehicle security requirements

Discovery Insure may require certain makes and models valued at over R250 000 to have a

tracking device. Minimum vehicle security requirements can be found in the Plan Schedule.

Vehicles that don’t adhere to these requirements will only have Third Party liability cover.

Time period to start repairs

Repairs on an insured vehicle must start within one month of the claim being approved. If these

repairs are delayed by the client, Discovery Insure will only pay the amount that was agreed

upon on the date of authorisation.

Further damage after an accident

If the vehicle is in an accident and is used or driven before the repairs have been effected, the

client will be responsible for the cost of repairs for any further damage to the vehicle related to

the accident.




of 249

Confidential

Exclusions on all Plans

These are events which Discovery Insure will not cover. These exclusions are related to either the client/driver

of the vehicle or to the vehicle itself.

The following are excluded:

If a licence was issued in a foreign

country and in an official South African

language, the licence is valid until the

planholder gets permanent residency

or citizenship of South Africa. When

the licence holder becomes a

permanent resident or citizen, they

have a period of 12 (twelve) months to

convert the licence to a South African

driving licence.

If the client/driver of the vehicle:

• At the time of the event was

under the influence of alcohol or

drugs.

• Suffers loss of income

(consequential loss).

• Refuses to give a breath or blood

sample to an official or duly

authorised Discovery

representative.

• Unlawfully leaves the scene of the

accident.

• Has insurance or liability under

any other motor vehicle

insurance legislation.

If the vehicle:

• Is hired out or used for reward.

• Is used for motor racing, rallies, speed trials, track

days or other contests.

• Is in the custody and control of the motor trade for

any purpose other than overhaul, upkeep or repair.

• Is used for commercial purposes.

• Is used as an armed response or armed reaction

vehicle.

• Is used or modified for commercial or trade purposes.

• Suffers wear and tear, mechanical, electronic or

electrical breakdowns, failures or breakages.

• Is being driven or towed by the client or any other

person with their consent or knowledge, and the client

or this person is not fully licensed to drive the vehicle

by law, or is driven or towed by any person who has a

learner’s licence and is not obeying the laws for a

learner driver’s licence.

• Is damaged from theft or hijack where the vehicle is

not fitted with the security and/or tracking recovery

devices as stated in the schedule.

• Is broken into and items were not locked inside the

luggage compartment or locked inside the interior of

the car.

• Suffers damage to tyres by the application of brakes

or by punctures, cuts or bursts.

• Has damage that happened before the start date of

cover.

• Has prior damage, unless the event that caused the

prior damage is a valid claim registered separately.

• Is in an unroadworthy condition.

• Suffers consequential loss.




of 249

Confidential

Client needs to be aware of the following

Primary driver

▪ It is the person who drives the car most.

▪ Generally, the older the person is, the lower the premium.

▪ Other factors that affect the premium include gender, marital status and driving experience after getting

their driver’s licence.

Use of car

▪ Discovery Insure does not cover commercial use of cars, only private and professional use and business

use.

▪ The premium for private and professional use, is lower than that for business use.

o Clients who insure their cars for the incorrect use will have to pay an added excess of 20% of

the claim amount.

Extras on the car

▪ Clients need to accurately disclose any extra fittings on their cars, whether factory fitted or not, for

example a tow bar, sun roof or leather seats.

▪ If not disclosed, these items won’t be insured. If a sun roof is standard on the vehicle, it does not need

specific mention.

▪ If clients are not sure, they can refer to their original sales invoice or contact the manufacturer to check

what came standard with the car and what an extra is.

Driver experience

▪ The longer clients have had their driver’s licence, the more driving experience they have, the lower their

rates.

▪ Clients need to disclose the year they first got their driver’s licence, not the date of issue on their licence,

to make sure they pay the appropriate premium for their driving experience.

Location

▪ Where the car is kept, affects the risk of theft, which will affect the premium.

▪ Clients need to accurately disclose this information and notify us if it changes.

Tracking device

▪ For vehicles needing a tracking device installed, installation must take place within five days of plan

activation.

▪ Clients need to give proof of installation within the required timeframe or the cover will be limited to

Third Party Fire and Theft, unless the telematics device installation has been selected.

▪ If clients cancel their Telematics device appointment, they have five days from the cancellation date to

provide proof of their tracking device installation.

Introducing 0% renewal increases for our best drivers

Our best drivers can get a 0% renewal increase on their comprehensive motor premium from 1 January 2018.

To qualify, clients need to have achieved at least 1 000 Vitality Drive points on average each month for a 12-

month period and also been claim free for a 12-month period.




of 249

Confidential

Pre-inspection

Use the Discovery app to take 5 photographs for pre-inspection

Clients use the Discovery app to take 5 photographs required for pre-inspection

▪ Front including registration plate

▪ Left side

▪ Right side

▪ Rear including registration plate

▪ Licence disk

Details

▪ All new clients or existing clients that add a vehicle to cover and clients that have not yet completed

their pre-inspection, need to have their vehicles (except brand new vehicles) pre-inspected to meet

risk management requirements.

▪ Clients with a Vitallity Drive sensor need to complete the pre-inspection process on the app or Tiger

Wheel & Tyre. Clients can also complete their vehicle pre-inspection at their nearest Discovery Insure

Drive Centre.

▪ The vehicle pre-inspection needs to be completed within five days of cover commencement.

▪ Only standalone DQ-Track installations technicians will do the pre-inspection (provided installation

booking is made within 14 days of cover commencement).




of 249

Confidential

Discovery Insure Claims process

Drivable Non-drivable Theft

1. ASSESSMENT Clients will need to take their

car to one of Discovery

Insure’s preferred

assessment centres to be

assessed.

Client’s car will be moved

to a Discovery Insure

preferred assessment

centre for assessment.

Not applicable.

2. VALIDATION Discovery Insure will validate each claim to make sure, among other things, that the

client has cover and that their premiums are up to date. Discovery Insure could

check:

▪ Driver’s licence

▪ Primary driver

▪ Use of car

▪ Previous claims history

▪ Third parties and witnesses

▪ If the car is registered as stolen with the police, if applicable

3. AUTHORISATION Once all the information above is obtained by Discovery Insure, a final authorisation

decision can be made.

▪ If a claim falls within the client’s cover and all the Plan details are correct, then

the claim is authorised for approval.

▪ If not, the claim is rejected. When a claim is rejected, the client and financial

adviser will be sent a rejection letter which contains:

o The reasons for rejection

o Details of the Short-term Insurance Ombudsman and FAIS Ombud, so

that the client can appeal the decision if they would like to.

4. SETTLEMENT The settlement process includes steps to make sure that

an item is either repaired or replaced or a client is

reimbursed for their loss. This includes:

▪ Authorise and arrange repair

▪ Settle payment with repairer once repairs are

completed

▪ Arrange car hire

▪ If car is written off, an original car registration

certificate and signed change of ownership form is

needed. If the car is financed, the finance house will

supply these documents. All vehicle keys need to be

speedily provided to ensure that there is no delay

with the settlement.

If the car is recovered, it

may need repair, which

will be arranged.

▪ If the car is recovered,

it is normally returned

to the planholder.

▪ De-registration

certificate and signed

change of ownership

form will be needed. If

the car is financed, the

finance house will

supply these

documents.




of 249

Confidential




of 249

Confidential

Legal claims

Liabilities would work as follows:

1. Discovery Insure never make contact with the third party to recover from them.

2. The third party needs to submit a claim to us (we do not call them to submit a claim).

3. Once a claim is submitted a third party procedure document will be sent to the third party detailing

the process.

For all recovery and liability claims the following rules are imperative:

▪ The client must not speak to the third party insurer at all and always refer them to us.

▪ The client cannot accept any money from the third party as this will prejudice our claim which could

result in us claiming from the client.

The Legal process: Overview of the process

1

3

4

5

6

2

Authorised claim is sent to the Recoveries Department

The merits are assessed and the consultant will determine whether it is a recovery or not

The recoveries consultant will contact the client to discuss the recovery process

The recoveries consultant will also contact the third party to determine if he/she is insured

The recoveries consultant will make payment arrangements with the third party

Try to recover the costs and excess




of 249

Confidential

Legal process: The full process

Recoveries

Step 1 Once a claim has been authorised by the claims department it is sent to the recoveries department

the next working day.

Step 2 The merits are assessed and the recoveries consultant will determine whether it is a recovery or not

based on the client’s description.

Step 3

If it is a recovery, the recoveries consultant will make contact with the client/broker to inform them of

the recovery process as well as provide their details. This can be done by either a telephone call or e-

mail.

Step 4 The recoveries consultant will then make contact with the third party to determine if the third party is

insured.

Step 5 If third party is uninsured

If third party is insured and

client does not have

telematics device

If third party is insured &

client has telematics

device

Consultant will try and arrange

for third party to pay a once-off

settlement.

The consultant will make

contact with the third party's

insurer to submit a claim.

The consultant will waive the

client's excess (after the claim

has been authorised) and

inform the client and supplier.

If third party cannot afford a

once-off settlement the

consultant will negotiate an

AOD (acknowledgment of debt)

where the third party will pay in

monthly instalments.

Only once the repair invoice has

been received will the third

party insurer start negotiations

with us.

The consultant will continue

with the recovery against the

third party to recover Discovery

Insure’s costs.

Step 6 We are not guaranteed the recovery of the costs and excess

for the following reasons:

The third party could be in a poor financial state making it

uneconomical for us to litigate.

Sometimes the third party cannot be traced for us to serve

summons on him/her.

The third party could dispute the merits (sometimes if we don’t

have a witness we cannot prove our client's version and then not

proceed to court).

Once sufficient funds are

received from the third party to

cover the client's excess, we will

refund the clients excess back

to him or to the IFA (depending

on how the excess was paid).

Should the third party insurer

settled us, the client's excess will

be refunded back to him or to

the IFA.

NB The recovery process is never guaranteed and can take up to 3

years depending on whether we litigate.




of 249

Confidential

Understanding claim rejections

Helping clients avoid common mistakes that could lead to claim rejections

At Discovery Insure, we believe that through proper education and good financial advice, we can help make

sure expectations are met at claims stage. Our aim is to help clients understand their insurance policies and

continue to improve our products, benefits and services to enhance and protect their lives.

In August 2013, Dennis Jooste, the Short-term Insurance Ombudsman released an article titled “The top 20

reasons insurance claims are rejected” to help clients understand the common pitfalls of their short-term

insurance policies. Below is a summary of the article published in Personal Finance on 4 August 2013.

Discovery Insure initiatives to help clients avoid claim rejection are highlighted and worthwhile discussing with

the client. Remember, the best advice to give clients is to read and understand the terms and conditions of

their plan.

Car Claims: Reasons why claims get rejected

Reason for

rejection

What was the cause Discovery Insure’s solution

Unroadworthy

vehicle

The car was in an unroadworthy

condition at the time of the

accident.

Clients can take their cars for a Tiger Wheel &

Tyre Annual MultiPoint check to make sure

that their cars are safe to drive. By passing

the check, clients also get their fuel rewards

percentage boosted and earn Vitality Drive

points.

Reckless driving The insured driver “failed to take

care”. For example, exceeding the

speed limit.

Every month, we send clients a driver

performance report showing them where

they can improve. This information is not

used at claims stage, other than to verify

time and place of accident.

Drunk driving The driver of the car was driving

under the influence of drugs or

alcohol.

Clients get discounted rates when they use

Scooter Angels, RoadTrip or Uber to help

them get home safely and avoid driving

under the influence.

Driver not the

regular driver

Where the insurance plan only

covers specific drivers and the

driver at the time of the accident

wasn’t specifically insured, or

where the regular driver is

incorrectly named on the plan.

The regular driver is the person who drives

the car the most and clients are required to

disclose this upfront.




of 249

Confidential

Reason for

rejection


Total loss plan The insurer only pays for a total

loss, as stated in the plan

schedule, but the client tries to

claim for accidental damage when

the vehicle has only been

damaged, and is not written off (a

total loss).

Discovery Insure provides comprehensive

motor vehicle insurance, which covers loss of

or damage to the client’s vehicle as well as

Third Party, Fire and Theft cover. Clients do

have the option to buy-down to Third Party,

Fire and Theft cover or Third party cover

only, which will be reflected in their

Plan schedule. Discovery Insure does not

offer clients the option to choose a “total-

loss” plan only.

Telematics data

shows driver fault

For example, the telematics data

shows that the car was speeding

at the time of the accident.

The information we get from the telematics

device is not used at claims stage, other than

to verify time and place of accident.

Tracking device not

fitted

The car did not have a tracking

device fitted at the time of the

accident, yet it was a plan

condition.

Certain high-value or high-risk vehicles must

have a tracking device fitted before an

insurer will accept the risk. Clients who install

standalone DQ-Track with stolen vehicle

tracking and recovery, will automatically

meet this requirement, subject to terms and

conditions, including timeframes.

Vehicle inspection

not carried out

The car did not have a pre-

inspection done in accordance

with the plan terms before the

accident.

Clients who install a telematics device will

have their vehicle pre-inspection done at the

same time as the device installation subject

to terms and conditions, including

timeframes or they can take photo’s using

the Discovery app

Security device not

fitted.

Where the car is required to have

a security device fitted, which was

not done at the time of the

incident.

Clients who install standalone DQ-Track with

stolen vehicles tracking and recovery, will

automatically meet this requirement. Clients

need to take note of the terms and

conditions to make sure that they install the

DQ-Track within the required timeframes.




of 249

Confidential

A few more reason why claims get rejected ▪ Material non-disclosure at quotation stage

o When the client does not accurately disclose relevant information such as any previous break in

cover, previous claims history or where terms and conditions were applied.

▪ Vehicle used for business

o For example, when cover is provided for social use and the car was used for a business trip at the

time of the accident.

▪ Vehicle not parked securely at night

o Where a car is stolen at night and it is stated on the plan schedule that the vehicle is securely

parked at night, when this was not the case.

▪ Unlicensed driver

o The driver of the car at the time of the accident was not in possession of a valid driver’s licence.

The repair process

Time period to start repairs

Repairs to the vehicle must be complete within six months of the date that we approve the claim. If the client

delays the repairs after this period, we will only pay the agreed amount at the date of our authorisation of the

claim and your client will be responsible for the balance if the cost of repairs increases.

Further damage after an accident

If the vehicle is in an accident and is used or driven before the repairs have been done, the client will be

responsible for the cost of repairs for any further damage to the vehicle related to the accident.

Remember we discussed Betterment under Basics of short-term insurance

Betterment is the amount by which the insured will benefit when lost or damaged property is restored into a

better condition or through replacement.

Make an appointment with the repairs to repair the car.

Client receives regular feedback regarding the repair process.

Client is notified once the repairs are completed. The client can collect the car.

Assessment

Approval

Appointment

Repair in progress

Repair completed

Assessor assesses the damage to the car. Takes +/- 20 min.

Client receives feedback within 48 hours.




of 249

Confidential

Old for New:

Many personal lines policies include new for old clauses e.g. replacing an old TV with a new one.

Tyres:

In the event that the client is involved in a car accident and the tyres need to be replaced as well, it will be

done proportionate to the remaining tread. The client might be asked to pay in a portion of the amount,

proportionate to the remaining tread.

Damaged vehicle body parts:

Alternative parts (approved second hand, or locally manufactured parts) are used by all insurers for repairs to

vehicles outside of a motor plan or a warranty. The insurance company will never jeopardize the safety of the

clients. If the parts that need to be replaced are safety-critical parts, i.e. airbags then new parts will be used.




of 249

Confidential

SmartAdvice

Introduction to SmartAdvice SmartAdvice was created to be a one-stop platform for our community of users to facilitate seamless integration

of financial advice with the new business submission process. SmartAdvice is simple and intuitive to use, and

assists the user by attempting to predict the best advice in a given scenario. While the suggested solutions can

easily be changed to reflect the financial adviser’s recommendations where required, these suggestions can

save the user time in straightforward situations.

While SmartAdvice can produce a comprehensive financial needs analysis incorporating the various aspects of

a client’s financial planning (such as health, wealth, risk and education planning), it is adaptive enough to provide

a financial needs analysis in a single financial planning area (such as retirement planning).

In SmartAdvice we use the term Client Needs Analysis (CNA) as an all-encompassing term for the Financial

Needs Analysis (FNA) and Medical Needs Analysis (MNA).

In addition to the obvious benefits an FNA provides to the client, generating an FNA report also offers immense

advantages for a financial adviser – the relationship between client and adviser is cemented as clients feel that

they have received additional value for money and are committed to a long-term plan for realising their financial

goals. They are therefore less likely to switch to another financial adviser.

SmartAdvice streamlines the process of reviewing a client’s financial situation after the financial adviser has

performed one FNA for the client. When it is time for an annual review, it is very simple to update.

You will receive comprehensive training on SmartAdvice near the end of the Academy.

When we capture a quote we will use all of that information to ensure that we capture the quote accurately,

so that we can get the correct premium in relation to the client’s risk profile.

Under “Risk management” as well as under “Everything a client should know” we referred to

the important facts to take into account when loading a quote for a client.




of 249

Confidential

Above is a screendump of the fields that need to be completed when capturing a quote.

1

2

3

5

4

6

Vehicle cover details

▪ Cover type

▪ Insure value type

▪ Vehicle use

▪ Tracking device

Additional

benefits

▪ Car hire days

▪ Write-off accelerator

▪ Credit shortfall

▪ Stolen vehicle

Recovery

Vehicle extras

▪ Extras on the vehicle

This is factory fitted items

that were added to the car

after sale.

Radio equipment

▪ New radio

equipment

Added a different type of

radio than what

came with the model

Car detail

▪ Cover type

▪ Insure value type

▪ Vehicle use

▪ Tracking device

Other detail

▪ Driver detail

▪ Parking location

The driver detail as well as

overnight parking is part of

the rating factor

1 2 3

4 5 6




of 249

Confidential

Risk Management

Risk management process

Most of the underwriting rules are built into the system. While loading a quote certain validation triggers

will pop up on the screen e.g. “Unsupported motor in excess of R600 000 without contents or buildings

cover and driver < 26”. Meaning that only a motor in excess of R600 000 has been captured. The

message will remain on the screen until either household contents or building has been added to the

quote. Once either one of the two have been added the message will disappear. If the client only wants

to insure the motor, then the quote will need to be referred to Risk management for underwriting. This

is known as an “Indicative quote.”

Validation triggers for Motor vehicle:

Validation trigger Action required

Executive vehicles:

Jaguar, Porsche, BMW, Mercedes Benz etc.

Power to weight ratio is > 15: M3, Porsche,

Maserati etc.

We need to look at the claims history and age of the

driver

Unsupported motor in excess of R600 000

without Contents or Buildings cover and driver <

26 years

This will be declined if not supported by

comprehensive Contents or Buildings at the main risk

address

Unsupported motor in excess of R1 million

without Contents or Buildings cover and driver <

31 years

This will be declined if not supported by

comprehensive Contents or Buildings at the main risk

address

Body type vehicles:

VW Microbus, Mercedes Benz Vito, Toyota Panel

Van’s, VW Caddy etc.

This validation triggers so that we can see what is the

vehicle used for and what are the occupations of the

driver – please complete the occupation at all times

Insured had more than 3 claims Full claims history is required for the past 5 years on

the insured and all drivers

Drivers older than 85 years Cover will be subject to an approved medical certificate

if application accepted




of 249

Confidential

Vehicle older than 30 years

Pre-inspection is required or cover will be amended to

Third Party Only

Vehicle engine is modified What was modified on the engine – free flow exhaust is

not an engine modification




of 249

Confidential


Value of extras in excess of 25% - vehicle value

R15 000 to R150 000

Cannot insure for a higher value

Value of extras in excess of 40% - vehicle value

R150 001 >

Cannot insure for a higher value

Nominated value has been selected on Motor and

Motorcycle

No Trans Union value is available

Vehicle value in excess of R2 850 000 We can insure in excess of R2 850 000 but re-

insurance will be required and the SLA is 48 hours

on this.

Vehicle Third Party Fire & Theft > R50 000 We want to make sure that there is no hire

purchase on the vehicle if Third Party Fire & Theft

is selected.

Underwriting will be required due to the vehicle

make and model

Toyota Hi-Lux, it is mandatory for a telematics

device to be selected due to high theft ratio

Multiple vehicles with one driver with different

overnight address

The reason behind this validation is so that we can

ensure the correct premium is charged for the risk.

Claims can reject due to non-disclosure of correct

driver information.




of 249

Confidential

Household contents

Household contents insurance




of 249

Confidential

Dwelling

The residence and the outbuildings that are at the risk address and are constructed as

shown in the plan schedule

Outbuildings

The private domestic outbuildings of the dwelling including but not limited to garages,

domestic employee quarters, storerooms, home office, consulting room or tenant

premises

Household contents


Short-term insurance industry Discovery Insure

▪ What is household contents?

▪ What events are covered by household

contents

▪ Conditions of cover

▪ What is average?

▪ Important terms you need to understand

▪ What is household contents

▪ Features of household contents


▪ Minimum security requirements

▪ Excess amounts

▪ Benefits of household content


▪ Exclusions

▪ What every client should know

▪ Quoting


Household contents

Also referred to as Household Insurance, this type of insurance:

▪ Is used to cover the contents of a home (e.g. furniture, appliances, paintings etc.)

▪ Normally covers items against loss or damage due to,

o Burglary

o Theft and

o Elements of nature.

o Cover items for a replacement value and not the market value. Clients must insure their items

at the current replacement value to ensure there isn’t shortfall between the actual

replacement value and the insured amount.




of 249

Confidential

Discovery’s Household Contents insurance

Discovery Insure will cover the replacement costs of household contents

▪ At the date of loss,

▪ Limited to the amounts specified in the Benefit Limit Annexure.

It is not always possible to replace items on a “like for like” basis as the material, pattern or model may no

longer be available. Therefore, Discovery Insure will replace it with similar material, pattern, make or model.


Discovery Insure Household Contents insurance will cover loss or damage from the following events:

▪ Theft, or attempted theft, fire, lightning, explosion;

▪ Malicious damage;

▪ Storm, water, wind, hail, snow or flood;

▪ Bursting, leaking or overflowing of oil and water apparatus or pipes - but we do not cover damage to

these items themselves;

Cover provided for household items that:

• Are in the dwelling and belong to the

client, or,

• The client has insurable interest in, and,

• For dwellings that are made of brick, stone

or concrete and covered with a roof made

of slate, tile, concrete or metal, or,

• If Discovery Insure agrees non-standard

constructions such as wooden walls,

thatch roofs or asbestos tiled roofs.

Cover not provided for household

items that:

• Are not in the dwelling at the time of

the claim event. Any items that are

taken out of the dwelling must be

covered under a portable

possessions policy.

On the Essential Plan damage caused by water other than natural occurrences such as

storms, rain, snow, flooding etc. is specifically excluded. This does not apply to geyser claims.

The geyser will be covered as well as damage caused by the water from the geyser. Loss of

water from leaking pipes is also excluded from the Essential Plan.




of 249

Confidential

▪ Earthquake;

▪ Impact on the dwelling by:

o Vehicles;

o Animals;

o Aircrafts and other aerial devices, or anything that falls from them;

o Falling trees except in the event of trees being cut on purpose;

o Collapse of TV/radio aerials, masts and satellite dishes;

▪ Power surges for any television set, video/DVD recorder or decoder (including portable aerial or

portable satellite dishes); and

▪ Accidental damage limited to the amounts specified in the Benefit Limit Annexure.

Features of the Discovery Insure household contents policy

No-excess benefit

There is no excess for household contents claims for:

▪ Fire, lightning, explosion, storm, water, hail, snow, flood, earthquake;

▪ Malicious damage;

▪ Geyser and personal liability claims; or

▪ Theft or attempted theft with visible signs of forced entry.

Other no-excess features

o Retired clients automatically get a zero excess on their plan.

o Discovery Insure has a flat, basic excess structure.

Complete details of our excess structure are available in the Excess Annexure.

No-average guarantee

Clients are responsible to make sure that they insure their goods for the correct replacement value at the

time of a claim. Clients often underinsure the value of the items in order to pay a lower premium. By under

estimating or under insuring the value of the household contents clients run the risk of being paid less when a

claim is then logged. (Claims are paid proportionately to the premium paid for the risk – more on this later).

The No-excess feature only applies to clients on the Classic and Purple Plans and

is specifically excluded from the Essential Plan.




of 249

Confidential

Discovery Insure offers clients an opportunity to have an asset inventory done to establish the correct value of

their household items. The asset inventory is done by an approved Discovery Insure service provider. Here’s

how

To maintain a No-average guarantee clients must

▪ Insure their household contents for the agreed amount

▪ Update their sum insured as soon as possible within 30 days of new purchases.

Once the asset inventory is done, Discovery Insure will provide the client with a no-average guarantee

certificate. When they claim they will not have to provide certificates of value for the items verified during the

original asset inventory assessment.

Explain the asset inventory process to clients

▪ All clients with a household contents sum insured value (including portable possessions) equal to or

greater than R1.5 million will automatically qualify for this benefit at no extra cost.

▪ Clients who do not insure their household contents for the recommended total combined

replacement value but for a lower amount, might have average applied at claims stage.

o By having the assessment done, insuring their contents correctly and receiving a no-average

guarantee, clients will have peace of mind that all their valid household contents claims will be

covered in full.

If the client lists the value of the items and insures them for more than R1 500 000

• Within 3 days of plan activation Discovery Insure automatically contacts clients to arrange for an asset inventory to be done

• If the value is in fact above R1 500 000 the asset inventory will not be charged for.

If the client lists the value of the items and insures them for less than R1 500 000

• The client will have to pay for the asset inventory themselves which usually costs around R1 000, but,

• If the value is found to be more than R1 500 000 the asset inventory will not be charged for.

It is advisable that clients have an asset-inventory done regularly, perhaps annually or every 2

years as the value of some items may decrease whereas others like jewellery may even

increase.




of 249

Confidential

Explain the asset inventory process to the client

▪ Discovery Insure will contact clients who automatically qualify within three days of their plan activation

to arrange a convenient date and time for their asset inventory assessment. This will be done by

Qantam Risk Assessors at no extra cost.

▪ Depending on the value of your client’s assets, the assessment will take between one and three hours.

▪ A report will be sent to your client within 10 working days of completion of the assessment.

▪ Once the client agrees that the report is correct and fair and insures their household contents to the

value indicated in the report, we will issue them with a no-average guarantee. This means that no

average will apply when they submit a household contents claim.

Important points to discuss with the client

▪ Clients need to update their household contents sum insured within 30 days of significant new

purchases to maintain their no-average guarantee.

▪ The assessment does not automatically ensure that clients’ portable possessions are covered. For

example, if a laptop is included in the inventory and final assessment value, then the laptop will be

covered in the client’s house. However, there is no cover for the laptop when it is outside their house,

unless the client specifies it under portable possessions.

▪ At claims stage, valuation certificates and proof of ownership for jewellery, pieces of art or other items

that are rare, unique or that are collectibles will still be required. If they are not available, cover will be

limited as shown in the benefit limit annexure. This applies even when the assessor was shown the

valuation certificate during the original inventory assessment.

▪ If clients choose to have an inventory assessment done with Discovery Insure’s accredited provider

and their contents value is assessed to be higher than R1.5 million, we will reimburse the client for the

cost of the assessment as long as they increase their sum insured value to that of the assessment.

▪ If a client has over R1.5 million in household contents due to increases over the life of the Plan, they

can choose to have an inventory assessment done at any time.

▪ Discovery Insure will only pay for one inventory assessment during the life of the Plan.

Technical details:

▪ Online Vault can be accessed by logging in to the Discovery website (www.discovery.co.za).

▪ Financial advisers can upload documents on behalf of their clients.

▪ Clients should still keep the original documentation, even when stored in the vault.

▪ Basic excess refers to the portable possessions basic excess as stated in the Excess Annexure.

▪ It excludes the Pedal cycle excess, any voluntary excess or any additional excess as stated on the Plan

Schedule.




of 249

Confidential

Online Vault

Online Vault gives clients the ability to save all their important documents in their secure online vault. By

saving their documents that show proof of ownership, including valuation certificates that show proof of

ownership and proof of value, clients will have their household contents and portable possessions claims

settled quicker.

Clients will also have their specified portable possessions’ basic claim excesses waived if these items’

documents (proof of purchase and valuation) are stored using the Online Vault.

The basic excess waiver is conditional to the following:

▪ The claim needs to be a valid, authorised claim; and

▪ All items that are being claimed for as part of a specific claim will need their proof of ownership and

valuation (where relevant) documents saved on the Online Vault before the claim event.

Minimum security requirements Discovery Insure may require a radio-linked alarm as a minimum security requirement for household

contents cover. The main consideration for this requirement is the location of the house.

The house in which the goods are kept must have the following:

OR

HOWEVER If clients live in an estate or complex, they do not have to meet either of these requirements provided that:

Burglar bars on opening windows,

including louvre windows and

external windows. Sliding doors

without a security gate must be fitted

with key operated locking bolts or

pins fitted at right angles,

An alarm linked to a 24h reaction

unit who will do a physical

inspection of your property when

the alarm is triggered. The alarm

must be maintained and in working

condition and must be switched on

when you leave the premises.




of 249

Confidential

Discovery Insure will also consider whether the risk address for any house is:

▪ Near an informal settlement.

▪ Close to a highway.

▪ Close to open grounds.

▪ Unoccupied for more than 60 consecutive days in a year.

Sub-limits that apply

Sub-limits apply for some events and certain items will not be fully covered under household contents.

This is unless they are specified under portable possessions cover. Discovery Insure will cover the client up to

the amount shown in the Benefit Limit Annexure for:

▪ Theft or attempted theft from any outbuildings;


R6 000 R10 000 R50 000

A client insures their jewellery. One of the terms of insuring their jewellery on a Discovery

Insure policy is that when not in use it will be kept in a wall or floor mounted safe.

If the client negligently leaves the jewellery out of the safe and it gets stolen, the client will

only be covered up to a certain limit as shown below.

• The boundary of the estate or complex must be completely walled or fenced in with a solid

wall or steel fence which must be at least 1.8 meters high, and

• The boundary wall or steel fence must be completely protected on top by either spikes,

razor wire, electric fencing or a laser alarm, and

• Any building at the estate or complex must have been completed, and

• One of the following apply in line with the above requirements:

▪ There must be a 24-hour guard at the gate

▪ Access must be via finger print recognition

▪ Access must be via handheld scanners for licence disc and driver’s licence

▪ Visitors must sign in and the owner contacted before access is granted.

•

• While there is ongoing construction in the estate or complex, cover for theft or attempted theft is

restricted to loss accompanied by forcible and violent entry or exit from the building.




of 249

Confidential

▪ Theft or attempted theft of jewellery and watches without visible signs of forced or violent entry and

not locked in a floor or wall-mounted safe unless specified. Limits applied are as follows:

▪ Goods in the open that belong in the home.

* Planholders may be liable for an excess payment for each and every item that is claimed for.

Excess Amounts

Although Discovery Insure offers a No-excess benefit for some events on the Classic and Purple Plan, there

are still events where excesses are applicable. These basic excess amounts are:

▪ Discovery Insure maintains a flat and simple excess that vary among the four plan options depending

on the insured event.

Average applied

If a client opted to not have an asset inventory done, they run the risk of being under insured and having

average applied to their claim. This happens when clients list their own value of items using estimation and/or

outdated sales invoices.

Average means that when they claim, they are only paid proportionately to the premium paid for the risk

insured.


R5 000 R20 000 R50 000


R5 000 R10 000 R50 000


R1 000 R750 R750




of 249

Confidential

A client insures their goods in their home for R800 000 without having an asset-inventory

done. The client lodges a claim of R200 000 following a flood. When the assessor does an assessment of the items in the client’s home he/she finds that the actual value of the insured items is R1 000 000. This means that the client is under-insured by 20% which in turn means they have been paying a premium that only covered 80% of the risk. Due to the fact that the client lodged a claim to the value of R200 000 and was under-insured by 20%, Discovery Insure will:

• Apply average

• Only pay the client R160 000 The calculation is as follows: Insured amount X 100 = Percentage of risk covered Actual value 1

R800 000 X 100 = 80%

R1 000 000 1

80% X R200 000 (Claimed amount) = R160 000




of 249

Confidential

Important information regarding jewellery

▪ Jewellery and other valuable items are covered in full, provided that there are visible signs of forced

entry.

▪ At claims stage, regardless of whether your client’s valuable items were in a safe or not, they would

have to provide Discovery Insure with valuation certificates and proof of ownership. This requirement

is regardless of whether or not the assessor was shown valuation certificates during the original

inventory assessment.

However, in the event of a total household contents loss, for example, where the client’s entire house

burns down, the client would not have to provide a valuation certificate as long as the assessor was

shown the valuation certificate during the asset inventory assessment and made a note of it on the

asset inventory report.

Clients must be reminded to always keep up-to-date valuation certificates to make sure the sum

insured is correct for all their valuable items. It is important that valuation certificates accurately

reflect the necessary specifications, for example, the clarity and weight of a diamond ring.

Its advisable clients also keep copies of the valuation certificates somewhere other than in their home

to make sure they are available at claims stage.

Discovery Insure’s locked safe warranty specifies that:

•All jewellery and other valuable items with a value that exceeds R20 000 per item, pair

or set that is not specified under the Portable Possessions section, must be kept in a

locked safe when not being used.

•The locked safe must be SABS approved and permanently attached to the floor or a

structural wall of the building.

•The keys to the safe must be kept in a secure place.

"What happens if I had not

provided valuation certificates

of the valuable items at the

time of a claim?"

"What happens if I do provide

up-to-date valuation

certificates at the time of a

claim?"

"What happens if I have

provided valuation certificates

at the time of a claim but there

are no signs of visible, forced

entry? For example my

jewellery was taken from the

dressing table.

The maximum amount a client

will be paid is:

• Essential Plan – up to R3 000

• Classic Plan – up to R5 000

• Purple Plan – up to R25 000

Subject to the conditions of the

policy, jewellery and other

valuable items are covered in

full, provided that there are

visible signs of forced entry.

The maximum amount a client will

be paid is:

Essential Plan – up to R5 000

Classic Plan – up to R20 000

Purple Plan – up to R50 000




of 249

Confidential

Understanding cover for jewellery and other valuable items under Household

Contents

Discovery Insure covers jewellery and other valuable items, including watches, gemstones, furs and articles of

platinum, gold or silver under the Household Contents section of cover.

Amount of cover

Jewellery and other valuable items are covered up to a maximum of one-third of the total contents sum

insured. Items that are specified under the Portable Possessions section of cover are covered in full and

excluded from this limit.

Valuation certificates

Clients need to provide valuation certificates for jewellery and other valuable items at claims stage, without a

valuation certificate the claim value for each item will be limited as noted above and noted on the Benefit

Limit Annexure.

Cover for theft with visible, forced entry

Subject to the above conditions, jewellery and other valuable items are covered in full, provided that there are

visible signs of forced entry.

Cover for theft without signs of visible, forced entry

Jewellery and other valuable items cover are restricted to R20 000 per item where there is theft with no visible

sign of forced entry and the item was not kept in a locked safe. Discovery Insures locked safe warranty

specifies that:

▪ All jewellery and other valuable items with a value that exceeds R20 000 per item, that are not

specified under the Portable Possessions section, must be kept in a locked safe when they are not

being used.

▪ The locked safe must be SABS approved and permanently attached to the floor or a structural wall of

the building.

▪ In the event of a claim there must be visible, forced and violent entry to the safe.

▪ The keys to the safe must be kept in a secure place.

Portable Possessions cover

Jewellery and other valuable items that are specified under the Portable Possessions section of cover are

covered in full. The valuation certificate requirement mentioned above also applies to this section of cover.

Benefits Included

These benefits are automatically included as part of the Discovery Insure Plan.




of 249

Confidential

Cover away from home Discovery Insure will cover insured household contents for loss or damage caused by an insured event while

the item/s is/are:

▪ Inside a building where the planholder temporarily lives.

▪ Temporarily inside an occupied private residence.

▪ Deposited for safe keeping at any hotel, guest house, club, bank and or deposit.

▪ At any registered furniture storage depot provided that the planholder has told us of this change.

▪ Inside the building of a business for the purpose of being made up, altered, renovated, repaired,

cleaned or dyed, excluding theft or attempted theft.

▪ Inside a building or office where the client is employed (excluded from the Essential Plan). Theft or

attempted theft is limited to the amount as shown in the Benefit Limit Annexure.

▪ In the conveying vehicle following theft, collision or overturning of the vehicle while client is in the

process of permanently moving to a new dwelling, or when the household contents are being

transported to or from any registered furniture storage depot. Scratching, denting, chipping, cracking

and tearing of items are excluded.

▪ Being transported to or from any bank or safe deposit facility, following hijack or armed robbery.

Accidental damage to television sets and glass Discovery Insure will cover accidental damage including power surges that happen in the dwelling to:

However, Discovery Insure will not cover damage that is a result of:

▪ Electrical or mechanical breakdowns or any process of repair or maintenance

▪ Scratching, denting, chipping, cracking or tearing of the items

▪ Subsidence and landslip

Television sets and glass Power surge only

Item sum insured as per your schedule

Essential Plan: R5 000 for each claim

Classic Plan: R10 000 for each claim

Purple Plan: Up to the sum insured




of 249

Confidential

Guests’ and domestic employees’ property

Discovery Insure will cover the planholder’s guests’ or full-time domestic employees’ household goods

and personal items for losses occurring at the planholder’s dwelling provided that the items are not insured

elsewhere.

Fridge and freezer contents

Discovery Insure will cover food that is stored in fridges and freezers at the planholder’s dwelling or

outbuildings that is accidently spoiled by a change in temperature; however the amount is limited to the

maximum stipulated in the Benefit Limit Annexure. Only two claims per 24-month period will be paid and

Discovery Insure will not cover loss or damage:

▪ After an intentional cut by the power or gas provider due to non-payment;

▪ To the refrigerator or freezer.

Groceries and household goods in transit

If the vehicle that is carrying the planholder’s groceries and other household goods is damaged due to fire,

explosion, collision, overturning or theft of the entire vehicle, Discovery Insure will cover the planholder’s for

loss of groceries. However, the amount claimable will be limited to the maximum amount as stipulated in the

Benefit Limit Annexure.

Keys, locks and remote control units

Discovery Insure will cover the loss of or damage to keys, locks and remote control units for the insured

building, up to the amount stated in the Benefit Limit Annexure.

Trauma cover

Discovery Insure will provide professional counselling following violent theft, attempted theft, hold up or

armed robbery at the insured dwelling for the holder and/or their domestic staff and family members. The

amount claimable is limited to the maximum stipulated in the Benefit Limit Annexure.

Personal documents

Discovery Insure will cover the planholder for the replacement of their identity document, driver’s licence and

passport following an insured event.

Rent and alternative accommodation

If the planholder is renting the insured dwelling or outbuilding and it becomes unsuitable to live in due to an

insured event, Discovery Insure will pay the following:

▪ The rental that the planholder pays as the occupier

▪ Alternative accommodation of similar value in a similar location

These amounts will only be claimable for the period reasonably needed to make the building or outbuilding

suitable to live in again.




of 249

Confidential

Fire brigade charges

Discovery Insure will cover the reasonable costs charged by an authorized body for extinguishing a fire to

prevent or reduce loss or damage to the insured dwelling or outbuilding.

Security guards

If Discovery Insure decides that security guards are needed to protect the insured household contents after

an insured event has happened, Discovery Insure will arrange and pay for security guards, up to the

maximum amount we will pay as shown in the Benefit Limit Annexure.

Gifts at dwelling for special events Excluded from the Essential Plan

Discovery Insure will cover loss of or damage to gifts and additional provisions at the insured dwelling that

occurs between one month before and one month after a wedding, anniversary, religious or other

celebration. The maximum amount claimable is stipulated in the Benefit Limit Annexure.

Goods in the open

Discovery Insure will cover household contents while they are in the open at the insured dwelling. This is, as

long as they are goods designed to be out in the open i.e. patio furniture.

Loss of water from leaking pipes

*Excluded from the Essential Plan.

Discovery Insure will compensate the planholder for amounts that they owe the authorities for water that has

been lost due to leaking pipes in the building or on its grounds. This cover is available to tenants as well as

homeowners. Cover will only be enjoyed if:

▪ The water consumption reading is at least 50% more than the average of the previous four readings, as

determined by the appropriate local authority.

▪ The holder took immediate steps to trace and repair the leak as soon as the leak was discovered, either

physically or on receipt of an unusually high water account.

The maximum amount that Discovery Insure will pay for this benefit is shown in the Benefit Limit Annexure.

planholders will only be entitled to claim once per incident and Discovery Insure will not pay more than two

claims in any 12-month period.

Discovery Insure does not cover:

▪ The costs to trace and to repair the leak.

▪ Loss of water from leaking taps, geysers, toilets and swimming pools, including the inlet and outlet

pipes of swimming pools.

▪ Losses if the dwelling is unoccupied for more than 60 consecutive days.




of 249

Confidential

Business equipment and stock-in-trade

*Excluded from the Essential Plan.

Discovery Insure will cover loss or damage to business equipment and stock-in-trade that is kept at the

dwelling as long as it is not insured by any other insurance.

Susan is a Tupperware saleswoman, who keeps her stock stored in her house until she can sell

or deliver them. If Susan’s house gets burgled and the Tupperware is stolen, Discovery Insure will

cover the loss of this stock up to the amount specified in Benefit Limit Annexure.




of 249

Confidential

Optional benefits

These benefits can be added to a Discovery Insure plan to enhance the cover. It is important to make sure

these benefits have been selected on the Discovery Insure quote as they are not automatically included:

Accidental damage to household contents

Discovery Insure will cover accidental damage to the planholder’s household contents that happens in the

building. The following limits will apply:

Discovery Insure will not cover:

▪ Mechanical, or electronic breakdown;

▪ Tools, gardening implements, garden

furniture;

▪ Automatic swimming pool cleaning equipment;

▪ Subsidence and landslip;

▪ Cracking or scratching of glass, glassware, or

any similar breakable article;

▪ Chipping or denting of furniture or domestic

appliances;

▪ Reproduction or repair of data of any kind;

▪ Loss or damage that is covered by any

manufacturer’s guarantee, warranty, or any

other insurance.

•

▪ Essential Plan ▪ Up to 10% of the sum

insured per claim

▪ Classic Plan ▪ Up to 20% of the sum

insured per claim ▪ Purple Plan ▪ Automatically

included up to the sum insured




of 249

Confidential

Comprehensive subsidence and landslip

Discovery Insure will cover loss or damage to the client’s household contents as a result of destruction or

damage to the building caused by subsidence or landslip. We will not cover loss or damage that is directly or

indirectly caused by or worsened by:

▪ Normal settlement, shrinkage or expansion of any building or part of a building;

▪ Faulty design or construction of any building;

▪ Faulty materials or workmanship;

▪ Alterations, additions or repairs to any building;

▪ The removal or weakening of support to any building;

▪ Poor compaction or infill;

▪ Excavations above or below ground except excavations done during mining operations.

▪ The movement of solid floor slabs or any other part of the building, unless the foundations behind the

external walls of the building are damaged at the same time.

▪ We will not cover consequential loss of any kind except those stated in Section 9.3 of the Plan Guide

(benefits included list).

▪ We will not cover work needed to stop more damage caused by subsidence or landslip.

Discovery Insure may require the planholder to prove that the loss or damage was caused by landslip,

subsidence or both before a claim is approved. Any excess payable will be specified in the Plan Schedule.

Exclusions

Clients will not enjoy cover under this section for:

▪ Money, stamp, coin and medal collections.

▪ Theft from the dwelling or outbuildings while lent, let or sub-let unless there is forcible and violent

entry or exit.

▪ Wrongful use by a tenant:

o Accidental damage while lent, let or sublet.

o To household contents left in the open, unless the household contents are designed to exist or

operate in the open;

▪ By any process of cleaning, restoring, altering, renovation, repair or dyeing or any process needing the

application or use of water unless by public authorities in putting out a fire;

▪ Loss of or damage or injury to animals, motor vehicles, motorcycles, caravans and trailers including

their fitted accessories.

▪ Scratching, denting, cracking, chipping or defacing.

▪ Any amount more than one third of the sum insured for the total value of gemstones, furs, jewels,

jewellery, watches and articles of platinum, gold or silver.




of 249

Confidential

▪ Property more specifically insured.

▪ Any loss where the dwelling is not lived in for a period more than 60 consecutive days, unless we

agree to extend the cover and this is in the client’s plan schedule.

▪ Theft of laundry from communal washing lines.

▪ Accidental damage unless specifically covered.

General

Cover for goods in storage Goods in storage refer to any items your client keep at a registered storage facility and excludes items stored

elsewhere (for example, at a different private residence).

Summary of Plan exclusions on Essential Plan

▪ Business goods and equipment

▪ Cover inside a building or office where you are employed

▪ At any registered furniture storage depot

▪ Loss of water from leaking pipes

▪ Gifts at dwelling for special events

Important information about cover for goods in storage

Discovery Insure will cover the theft of or loss of the goods in storage under the following circumstances:

▪ Your client needs to inform us if he has any items in storage.

▪ Items have to be kept at a registered storage depot (for example, items housed in a friend’s garage will

not be covered).

▪ Your client is covered for listed perils and theft only (for example, accidental damage and, loss or

damage caused by insects or pets are specifically excluded).

▪ Theft and burglary cover is subject to the following being present:

o An alarm linked to armed response

o 24-hour guards

o Access control

▪ Scratching, denting, chipping, cracking and tearing are all excluded.

▪ The value of goods in storage must be included in the household contents sum insured. If not, average

may be applied if your client is found to be under-insured at claims stage. Your client must also make

sure the items have been insured for their full replacement value. Your client may be required to

provide proof of ownership in the event of a claim.




of 249

Confidential

Damage and loss caused by domestic pets

▪ Discovery Insure does not cover loss or damage, caused by a client’s domestic pets, to their buildings

or household contents. For example, scratch marks on any furniture that are made by your client’s cat

will not be covered under their household contents policy.

▪ Discovery Insure will cover loss or damage caused by the impact of animals within their dwelling,

other than their domestic pets. For example, if a guinea fowl crashes through your client’s large glass

lounge window and the flying glass damages their furniture, your client will be covered under their

household contents and buildings cover.

What every client should know

Location The location of a property is important. Properties in high risk areas attract a higher premium. Clients need to

accurately answer if their property is near an open field or on a plot or smallholding to help us to assess the

risk and charge the appropriate premium.

Minimum security requirements As discussed previously, these requirements need to be taken into account when loading a quote.

Sum insured It is crucial that the household contents sum insured is adequate to cover the replacement value of all content

items (replacing with new items) or average will apply at claims stage. Clients may use our asset inventory

assessment so we can give them a no-average guarantee once their plan has been updated to reflect the

correct sums insured. For a sum insured greater than R1.5 million, the assessment is offered at no extra cost.

Benefit limits

Clients need to understand their benefit limits. Limits include:

▪ Limits on jewellery, art and collectables without a valuation certificate.

▪ Accidental damage limits, if applicable.

▪ Limits on theft or attempted theft without visible violent and forcible entry from outbuildings and to

items such as jewellery.

▪ Jewellery or valuable items cover is limited to a third of the household contents’ sum insured. If clients

have jewellery or valuable items worth more, they need to specify it.

▪ Jewellery of high value and not in use needs to be kept in a safe, or cover will be limited.




of 249

Confidential


Damage Theft

1. ASSESSMENT An assessor may be sent to the client’s physical address. For non-theft claims, an

arrangement could be made for the items to be sent away for assessment at one

of Discovery Insure’s preferred assessors.

2. VALIDATION Discovery Insure will validate each claim to make sure, among other things, that

the client has cover and that their premiums are up to date.

Discovery Insure could check:


▪ Adequate cover (including sum insured)

▪ Limits per section of cover, for example jewellery and valuable articles have a

one-third limit

▪ Proof of ownership and valuation certificates


▪ If the items are registered as stolen with the police, if applicable

3. AUTHORISATION Once all the information above is obtained by Discovery Insure, a final

authorisation decision can be made.

▪ If a claim falls within the client’s cover and all the plan details are correct, then



adviser will be sent a rejection letter, which contains:


o Details of the Ombudsman for Short-term Insurance and FAIS

Ombud, so that the client can appeal the decision if they would

like to.

4. SETTLEMENT The settlement process includes steps to make sure that an item is either repaired

or replaced or a client is reimbursed for their loss. This includes:

▪ Discovery Insure appointing a service provider

▪ Settling payment with a Discovery Insure appointed service provider after

repair or replacement of the damaged or lost item.




of 249

Confidential


Household Content Claims: Reason why claims get rejected.

Most claims for household contents cover are rejected or only partially paid on the basis of the average

clause, in the event that clients are underinsured.

Reason for

rejection


Inflated and

fraudulent claims:

Claims are inflated by adding

items that the client didn’t have

because they are under insured.

▪ Clients who make use of our inventory

assessment to make sure that they are

adequately insured will be issued with a

no-average guarantee certificate.

▪ Clients with household contents valued

at more than R1.5 million, can have the

assessment done at no cost.

SmartAdvice

When we capture a quote we will use all of the information to ensure that we capture the quote

accurately, so that we can get the correct premium in relation to the client’s risk profile.




of 249

Confidential

On the previous page is a screendump of the fields that need to be completed when

capturing a quote.

1

2 3

4

5 6

Property information

▪ Sum insured should be accurate

▪ Do not insure communes

▪ Security control should be indicated

Alarm requirements

▪ Alarm must be linked and activated when unoccupied

▪ Property use must be indicated

▪ Mark no of days consecutively empty

unoccupied

Construction

▪ Select wall construction ▪ Main entrance

perimeter wall must be indicated

Risk measures

▪ Lightning conductor only necessary in certain areas

▪ Note burglar bars, pin locks and security gates

Claims history

▪ Insurance history ▪ Number of claims

and incidents in last three years

Additional benefits

▪ Explain importance of accidental damage cover

▪ Select relevant additional benefits

1 2 3

4 5 6

1

3

2

4

5

6




of 249

Confidential

Risk Management

As discussed previously most of the underwriting rules are built into the system. While loading a quote certain

validation triggers will pop up on the screen and stay there until it has been addressed. If it has not been

addressed, the quote will be indicative and must be referred to Risk management for underwriting.

Let’s have a look at some of the validation trigger that will pop up while loading a quote


Property is situated on a Plot, Farm or

Smallholding

Plot & Farm endorsement prints on schedule

Thatch risks:

Main residence covered in thatch – All

areas excluding Western Cape

Requirements for thatch:

▪ The buildings must be protected by a SABS approved

lightning conductor, which may not be altered or

removed by your client without our written consent.

▪ Proof of an electrical report stating that the lightning

conductor is approved.

▪ 1 kg dry chemical powder fire extinguishers are installed

in the dwelling, of which one must be placed in the

kitchen.

▪ All fire extinguishers must be maintained and in working

order.

▪ Floor area of a structure under

thatch exceeds 15% of the floor area

of the main building

▪ < 5 metres of the main residence:

Requirements:

▪ The buildings are protected by an SABS approved

lightning conductor, which may not be altered or

removed by your client without our written consent.

Proof of an electrical report stating that the lightning


▪ Proof of an electrical report stating that the lightning


▪ 1kg dry chemical powder fire extinguisher is installed in

the area under thatch.

▪ All fire extinguishers must be maintained and in working

order.

▪ Floor area of a structure under

thatch is less than 15% of the floor

▪ > 5 metres of the main building

Discovery Insure

Requirements:

▪ One X 1kg dry chemical powder fire extinguisher is

installed in the area under thatch.

Comprehensive Subsidence & Landslip Engineers & Geotechnical report is required before approval

can be given at quote stage

Roof construction – other What is the roof made of?




of 249

Confidential

Wall construction – other, timber If the walls are constructed of timber then we need to know

if the wood is treated for fire and for insects/termites, is the

property situated near Fynbos

House is used as a commune Don’t insure communes

House used for business What business will be conducted from the house? Give as

much information as possible – no guest houses, salons,

crèches etc.

Combined sum insured in excess of R22

800 000, Building, Contents & Portable

Possessions – standard construction

Need to refer to our re-insurer for acceptance and SLA is 48

hours

Buildings Section




of 249

Confidential

Building

The private residence (such as a house, townhouse or flat) at the risk address and constructed as

shown in the Policy Schedule. The following structures that are also at the risk address will be

taken as part of the private residence for the purpose of this section: outbuildings; paths;

driveways constructed of brick, concrete, paving, asphalt or stone (not gravel); walls, gates and

fences (excluding hedges); swimming pools including fixed filtration plant; tennis courts; water

pumping machinery (excluding automatic pool cleaners); boreholes for domestic use; permanent

fixtures and fittings; sauna and spa baths; aerials and satellite dishes; as well as water, sewerage,

gas, electricity and telephone connections.

Theft

Loss or damage to the insured property. Excess will not apply where theft followed violent and

forcible means.

Fixtures and fittings

Including but not limited to built-in furniture (fixed to the walls or to the floor), wall-to-wall

carpeting, bathroom and kitchen fittings and permanent security systems.

Fixed equipment

Equipment (such as motors, pumps, etc.) needed for swimming pools, spa baths, boreholes, water

pumps, irrigation systems, electric gates, garage doors, air conditioners, central vacuum cleaning

systems, stoves, alarms and electric power generators.

Standard construction

The walls of the dwelling are made of brick, concrete or stone and the roof is made of tiles, slate,

concrete or metal. Non-standard dwellings are those with thatch roofs.

Buildings insurance, covers



▪ What is building insurance?

▪ What does buildings insurance cover?

▪ Which events are covered?

▪ Important terms

▪ What is buildings insurance?


▪ Benefits


▪ Exclusions

▪ What every client should know

▪ Quotes





of 249

Confidential

What is Buildings Insurance?

Buildings insurance covers

▪ This is the physical structure of a private home and generally includes outbuildings, granny flats, garages,

work sheds and swimming pools.

▪ The repairs, rebuilding or replacement of any fixtures, fittings, built-in appliances, cupboards and geysers.

▪ Damages caused by fire, flood, lightning, earthquake and explosion.

Discovery’s Buildings Insurance

Discovery Insure will cover buildings:

▪ Belonging to the client or in which they have financial interest.

▪ Buildings that are constructed of brick, stone or concrete and covered with a roof made of slate, tile,

concrete or metal.

▪ Or buildings approved by Discovery Insure of non-standard construction such as thatch or wood.

Discovery Insure will cover the replacement cost of the dwelling at the date of loss, limited to the sum insured

specified in the contract schedule. If the full costs of reconstruction are more than the sum insured, the

planholder could be subject to average.

Option to rebuild

Planholders may choose to rebuild their building as close as possible to its condition when new:

▪ Subject to the sum insured.

▪ On the same site or on another site and in the way they want.

▪ Within six months of the date of loss or destruction or damage.

Holiday homes are also covered however Discovery Insure requires that there is another home on the contract that is occupied for most of the year. There may be some aspects regarding the holiday home that will lead to underwriting, for example, if there is no alarm linked to armed response.




of 249

Confidential

Special Conditions – Thatch roofs

Thatch roof of main dwelling Thatch roof of Lapa/Outbuilding

• The building is situated within the municipal

fire brigade area.

• The buildings are protected by an SABS-

approved lightning conductor, which may not

be altered or removed by the client without

Discovery Insure’s written consent.

• Proof of an electrical report stating that the

lightning conductor is approved.

• Two one kg dry chemical powder fire

extinguishers are installed in the dwelling, of

which one must be placed in the kitchen.

• The grounds up to 25 metres on all sides of

the dwelling, or to the boundary perimeter,

whichever is closer, must be kept clear of

bush, grass, etc. This does not apply to

cultivated and maintained lawns and gardens.

Where the floor area of a structure under

thatch exceeds 15% of the floor area and

within 5 meters of the main building:

• The building is situated within the municipal

fire brigade area.

• The buildings are protected by an SABS

approved lightning conductor, which may not

be altered or removed by the client without

our written consent. Proof of an electrical

report stating that the lightning conductor is

approved.

• 1kg dry chemical powder fire extinguisher is

installed in the area under thatch.

• All fire extinguishers must be maintained and

in working order.

Where the floor area of a structure under

thatch is less than 15% of the floor area and

within 5 meters of the main building

• 1kg dry chemical powder fire extinguisher

is installed in the area under thatch.




of 249

Confidential


The following events are covered:

▪ Fire, lightning, explosion

▪ Malicious damage, but not while the building is being lent, let or sublet

▪ Accidental damage

▪ Storm, wind, water, hail, snow or flood

▪ Earthquake

▪ Bursting, leaking or overflowing water or oil apparatus or pipes, including damage to the items

▪ Theft or attempted theft

▪ Subsidence and landslip but only insofar as detailed in the section below

▪ Impact by:

o Vehicles

o Animals

o Aircraft or other aerial devices or articles dropped from them

o Collapse of TV / radio aerials, masts and satellite dishes

o Falling trees except in the event of trees being cut on purpose

Exclusions relating to subsidence and landslip

Discovery Insure not cover loss or damage that is directly or indirectly caused by or worsened by:

▪ Normal settlement, shrinkage or expansion of any building or part of a building;

▪ Poor design or construction of any building;

▪ Faulty materials or workmanship;

▪ Alterations, additions or repairs to any building;

▪ The removal or weakening of support to any building;

▪ Poor compaction or infill;

▪ Excavations above or below ground except excavations done during mining operations;

▪ Contraction, shrinkage or expansion of soil caused by the moistness or dampness or moisture content of

clay and other similar soils;

▪ The movement of solid floor slabs or any other part of the building, unless the foundations supporting the

outside walls of the building are damaged at the same time.




of 249

Confidential

We will not cover:

o Damage to drains, water courses, boundary walls, garden walls, screen walls, retaining walls,

gates, posts or fences, driveways, paving, paths, patios, terraces, swimming pool surrounds

and tennis courts unless the damage occurs to the private residence building at the same

time.

o Consequential loss of any kind.

o Work needed to prevent more destruction or damage due to subsidence or landslip.

o A client may need to prove that loss or damage was caused by landslip, subsidence or both

before we will approve the claim.

Benefits Included

These benefits are automatically included as part of the Discovery Insure Plan.

Accidental Damage cover

Discovery Insure includes standard cover for accidental damage.

Emergency accommodation

Discovery Insure will cover the costs of emergency accommodation if the insured building is

unsuitable to be lived in after an insured event. Accommodation will only be provided for family

members, domestic employees and guests staying in the insured building at the time of the

event.

Breakage of glass and sanitary-ware

Accidental damage covers:

▪ Fixed glass and mirrors;

▪ Fixed sanitary-ware

Discovery Insure does not cover accidental breakage when damage is caused by:

▪ Buildings being constructed or renovated

▪ Electrical or mechanical breakdown

▪ Subsidence or landslip

▪ Loss or damage by insects or household pests.




of 249

Confidential

Rent and alternative accommodation

If the insured building is unsuitable to be lived in due to an insured event, Discovery Insure will

pay the planholder for the following:

▪ Loss of rent

▪ Alternative accommodation in an unfurnished building

Discovery Insure will only pay for the period that is reasonably required to make the client’s

dwelling suitable to live in again. The maximum amount that we will pay the owner is the

amounts shown in Benefit Limit Annexure.

Keys, locks and remote control units Discovery Insure will cover the loss of or damage to keys, locks and remote control units for the

insured building.

Swimming pool filters and borehole pumps (excl. Essential Plan)

If there is accidental loss of or damage to a fixed filtration plant or water pumping machinery in

domestic use at the insured building, Discovery Insure will pay for or choose to repair or replace

it. This does not include automatic pool cleaners or similar equipment. Discovery Insure does

not cover loss or damage due to wear and tear.

Public supply or mains connection

Discovery Insure will pay for or repair water, sewerage, gas, electricity and telephone

connections between the building and the public supply or mains that are accidentally damaged

or destroyed. This benefit only applies if these connections are the responsibility of the insured.

Public authorities’ requirements

Discovery Insure will pay the costs for repairing or rebuilding according to public authority

requirements, following destruction or damage to the insured building by an insured event.

However, Discovery Insure will not pay for additional costs required for compliance if the proper

standards were not met at the time of claim.

Fire brigade charges

If Discovery Insure approves the claim, the reasonable costs of extinguishing a fire to prevent or

reduce loss or damage to the insured building will be covered.

Debris removal, demolition and professional fees

Following damage to the insured building by an insured event, Discovery Insure will pay the

costs for:




of 249

Confidential

▪ Demolishing the building, taking debris away from the site and putting up hoardings

needed for building operations.

▪ Architects’, quantity surveyors’ and consulting engineers’ fees.

▪ Local authorities’ fees.

The cover will only be in place if the planholder has written consent from Discovery Insure to

proceed.

Security guards

If Discovery Insure decides that security guards are needed to protect the insured building after

an insured event has happened, Discovery Insure will arrange and pay for security guards.

Removal of fallen trees (excl. Essential Plan)

Discovery Insure will cover the reasonable costs of removing trees that fell due to the insured

event, Discovery Insure must first give their consent for the claim to be valid.

Damage to gardens (excl. Essential Plan)

Discovery Insure will cover damage to trees, plants, shrubs and irrigation systems on the

grounds of the building following an insured event. Discovery Insure will only cover damage that:

▪ arises from a fire or explosion

▪ results from the extinguishing of a fire

▪ is caused by the impact of a vehicle or aircraft

Personal Liability

Personal Liability of R2.5 million is automatically included. There is the option to buy increased

cover of R5 million, R10 million or R20 million.




of 249

Confidential

Optional benefits These benefits can be added to an Insure contract to enhance the cover. It is important to make

sure these benefits have been selected on the Insure quote as they are not automatically

included:

More than 60 consecutive days unoccupied Discovery Insure will cover the client for loss or damage if the building is unoccupied for a period

of more than 60 consecutive days. There must be visible signs of violent and forced entry or exit

following theft or attempted theft.

Comprehensive subsidence and landslip

Subsidence and landslip cover can be extended to include cover for loss or damage that is caused

by or worsened by contraction, shrinkage or expansion of soil caused by the moistness or

dampness or moisture content of the soil (clay and other similar soil).

Does your client need comprehensive subsidence and landslip cover?

Very few clients need comprehensive subsidence and landslip cover as it is generally only

required for clay and similar soil types, where contraction of the soil could cause severe damage

to surrounding buildings. Usually this cover is only purchased when needed.

Due to the risk associated with providing comprehensive cover, Discovery Insure requires

a geotechnical report to make sure the house in question has been built to meet the

required standards. This report includes details about the house’s construction such as

the foundations, whether the house has been piled, the number of piles etc. The report

can be done by a Civil Engineering firm at an additional cost to the client.

Discovery Insure can only make the decision to offer the cover once we have received the

geotechnical report.

Jamie is concerned about the risk of damage to her house that could be caused by sinkholes

due to the rising mine water crisis in the Johannesburg area, even though no such risk has

presented itself in the past. Her immediate surrounding is built on stable soil. She would not

require additional comprehensive subsidence and landslip cover for her house as there is no risk

of soil contraction, shrinking and expansion cause by moisture content of clay and other similar

soils. The standard subsidence and landslip cover will cover her for other, once-off subsidence

events as explained in the Plan Guide. However, if her house was built on clay, she may have

required comprehensive subsidence and landslip cover for her house.




of 249

Confidential

Does household contents cover include basic subsidence and landslip cover?

Discovery Insures household contents cover does not include any subsidence and landslip cover

so comprehensive subsidence and landslip cover will need to be purchased as an optional buy-up

option.

Before purchasing comprehensive subsidence and landslip cover, clients should consider the

following:

▪ Most clients do not need this cover.

▪ The cover is expensive.

▪ The geotechnical report is done at the client’s own cost and can be expensive, with the

cost ranging between R5 000 to R15 000 or even more.

▪ Having the geotechnical report done does not guarantee the cover will be provided.

Advice the client to consult with the appropriate, accredited professionals (their builder, architect

or engineer) on the need and importance of obtaining comprehensive subsidence and landslip

cover based on their circumstances.

Pipes and water heating systems wear and tear Discovery Insure will cover the client for loss or damage from bursting, leaking or overflowing

geysers or pipes due to wear and tear, rust, decay or faulty workmanship, up to the limits noted

in the BLA.

This will cover resultant damage to the client’s household contents (where not specifically

insured) up to the amount as shown in the BLA.

This is an optional cover on the Essential and Classic plan, and standard cover on the Purple Plan.

Accidental damage to buildings

Discovery Insure will cover the building at the risk address and the part of the building that has

been accidentally damaged. It must not be covered by a manufacturer’s warranty, guarantee or

similar type of insurance. Discovery Insure will also not cover subsidence and landslip under this

section.

Summary of Plan exclusions on Essential Plan

▪ Swimming pool filters and borehole pumps

▪ Damage to gardens

▪ Removal of fallen trees




of 249

Confidential

Exclusions

These are events which Discovery Insure will not cover:

▪ Loss or damage where the building is empty for a period of more than 60 consecutive

days, unless Discovery Insure agrees to extend the cover and this is stated in the Plan

Schedule.

▪ Loss or damage from wear and tear, gradual deterioration, lack of maintenance, or

resulting from faulty design, construction or materials.

▪ Loss or damage if the building does not follow the rules of the National Building

Regulations or similar laws at the time of building.

▪ Gradual operating causes.

▪ Loss or damage to temporary structures such as, but not limited to, prefabricated garden

sheds or tree houses.

▪ Consequential loss or damage of any kind except as specifically provided for in this

section.

▪ Loss or damage to the building or any part of the building that is made from materials

other than those specified.

▪ Matching building materials: When the dwelling is repaired and Discovery Insure cannot

achieve an exact match, we will use materials that in our opinion match the damaged or

lost materials as closely as possible. Discovery Insure will only do this to the part of the

dwelling where the loss or damage has occurred. Discovery Insure will not pay for

matching building materials to create a uniform effect throughout the dwelling.

▪ Loss or damage by own domestic pets.

▪ Any loss or damage caused by storm, wind, water, hail or snow during renovations,

additions or extensions if the loss or damage is caused or made worse by these actions.

▪ Loss or damage caused by weeds or roots.

▪ Chippings, scratches, disintegrations or discolouration.

▪ Loss, damage or breakage covered by any guarantor, service contract, purchase contract

or agreement.




of 249

Confidential

General

Electric fence New legislation came into effect on the 1st of October 2012 which requires that any new,

upgraded or repaired electric fence installations and any maintenance and repair of existing

electric fencing meet the following requirements:

▪ It needs to comply with the newly drawn up Electric Fence Legislation.

▪ It needs to be certified with an Electric Fence System Certificate of Compliance (EFC). This

is similar to an Electrical Certificate of Compliance (ECOC) which verifies the safety of

electrical installations in homes.

▪ All properties transferred after 1 October 2012, which are fenced off with an electric

boundary security fence, must be accompanied by an EFC and a test certificate that is not

older than two years.

▪ An EFC must be issued by an accredited electrician that is registered with the Department

of Labour.

▪ Existing systems, without an EFC, need to be re-inspected and upgraded if not compliant

or else they must be removed.

Please remember to inform clients that failing to comply with the above legislation could

result in legal action being taken against them. It could also potentially have a negative

impact at claims stage.

We recommend the client speak to the appropriate fencing specialists to make sure they

are compliant and appropriately covered.

According to the rules of most financial institutions, a client needs to have building insurance

cover when securing a bond with them. In the past financial institutions could insist on a

bondholder insuring their property with their in-house insurer. This is no longer the case and

very often a significant saving on building insurance can be achieved by moving to an insurer

independent of the financial institution.

With Discovery Insure clients have the option of moving their building cover to us whilst

simultaneously meeting all the requirements set out by their financial institutions.

The table below shows the financial institution requirements and how Discovery Insure provides

the necessary cover and conditions to meet these requirements.




of 249

Confidential

Financial institution requirements Discovery Insure offering

The building's physical address needs to

be stated on the schedule of insurance.

Discovery Insure policy schedules explicitly states the

building address.

The policy needs to cover subsidence and

landslip.

Landslip and subsidence is automatically covered in

the Discovery Insure policy. In addition there is an

option to buy a more comprehensive offering than the

standard cover.

The policy needs to include personal

liability cover.

Personal liability cover of R2, 5 million is automatically

included. There is the option to buy increased cover of

R5 million, R10 million or R20 million.

The policy needs to provide automatic

annual escalations of the sum insured.

The sum insured needs to be adequate.

The sum insured under buildings is increased

automatically on the anniversary date of the policy by

an inflation-linked percentage determined by

Discovery Insure.

The client needs to ensure that the sum insured is

adequate at all times and can update this value at any

time during the period of cover.

The policy needs to include a mortgage

clause.

When required the mortgage clause is added by means

of an endorsement to the policy.

The policy needs to include SASRIA cover. SASRIA is included in all Discovery Insure policies.

Understanding how water damage is covered

Discovery Insure clients have the option to choose either the Essential Plan or the Classic Plan. In

addition, clients who have a combined sum insured of at least R5 million qualify for the Purple

Plan.

Classic, Purple, Essential Plans Essential Plan only

Clients will be covered for:

▪ Storm, rain or flooding

▪ Bursting, leaking or overflowing geysers or

pipes

Clients will not have cover for:

▪ Gradual operating causes

▪ Any loss or damage caused by a storm, rain

or water during renovations, additions or

extensions to buildings if the loss or damage

is caused or made worse by these actions

▪ The costs to trace and repair leaks

▪ The use of water in putting out a fire, unless

it is used by public authorities

In addition, Essential Plan clients will not be

covered for:

▪ Loss or damage contributing or caused by

wear and tear, gradual deterioration, or a

lack of maintenance under the buildings

section. For example, damages resulting

from overflowing gutters or lack of

maintenance of their roof.




of 249

Confidential




of 249

Confidential

What every client needs to know

Sum Insured It is crucial that clients insure their buildings appropriately, or they may not be paid in full at

claims stage. In a total loss, such as a fire, the sum insured needs to be enough to cover:

▪ Rebuilding their house, including architect and other fees

▪ Removing debris

An estate agent valuation or a municipal valuation may not be appropriate as it typically includes

the land value. A good place to start is to calculate the square metres of the sections under roof

and multiply this by the current building costs per square metre. Inflation needs to be added, as

at the time of the loss costs may have risen, as well as the other potential costs. Clients can also

use a building valuator for which we can supply details on request.

Home maintenance Clients need to make sure their homes are properly maintained. Insurance does not cover

damage as a result of:

▪ Lack of maintenance

▪ Wear and tear (Optional cover available for geysers and pipes on most plans)

▪ Pre-existing conditions

▪ Defective workmanship

It is important to make the client aware of these requirements as we do not cover claims that

arise from wear and tear, gradual deterioration and lack of maintenance. Here are a few tips you

can give clients on home maintenance. They are particularly important for clients to consider

before the start of a rainy season.

Gutters ▪ Replace any missing gutters or pieces of gutters so that water does not collect near the

foundation or roof of the building.

▪ Check gutters and down spouts for any rust damage or wear due to corrosion.

▪ Get rid of any leaves or debris that may have gathered over the winter months.




of 249

Confidential

Walls and foundations ▪ Check for cracks, termite and mould damage and repair accordingly.

Roof ▪ Inspect the roof for any missing tiles or openings and repair accordingly.

▪ Look for signs of water spots, standing water or mould – these are warning signs of a

leak.

Plumbing ▪ Conduct a thorough inspection of all taps and spouts in the building and repair leaks to

avoid unnecessary water damage or flooding.

Geysers ▪ Check geysers, the pressure valve and connections for any leaks.

▪ Check that the drip trays are in place and that the outlet joins are sealed. The drip tray is a

regulatory requirement for geysers in buildings and can prevent gradual damage from a

steady leak or minimise resultant damage should the geyser burst.

Additional: Comprehensive subsidence and landslip cover Generally, clients only purchase this cover if they specifically need it due to the area they live in.

In such instances we will need a geotechnical and engineer’s report, which the client will need to

source at their own cost before we can determine whether we can quote.

Thatch Thatch poses a significant fire and lightning risk, so clients with thatch on their properties must

be shown and have our thatch requirements explained to them. Clients who do not adhere to

these requirements may not have a valid claim.

Additional simple maintenance: ▪ Chimney– check and clean out chimneys regularly.

▪ Prep the pool for summer.

▪ Painting – add an extra layer of protection to both walls and wooden fixtures.

▪ Garden upkeep – make sure trees don’t grow into the building and perimeter wall.

▪ Home ventilation – open windows to ventilate rooms when cooking and showering to

prevent mould and damp from forming.




of 249

Confidential


For more information on the buildings claims, refer to the Financial Technical Guide.

Damage to building

1. ASSESSMENT An assessor may be sent to the client’s physical address.


the client has cover and that their premiums are up to date. Discovery Insure

could check:


▪ Adequate cover (including sum insured)

▪ Lack of maintenance

▪ Wear and tear

▪ Pre-existing conditions

▪ Defective workmanship



▪ If a claim falls within the client’s cover and all the plan details are correct,

then the claim is authorised for approval.

▪ If not, the claim is rejected. When a claim is rejected, the client and

financial adviser will be sent a rejection letter, which contains:


o Details of the Ombudsman for Short-term Insurance and FAIS

Ombud, so that the client can appeal the decision if they would like

to.









of 249

Confidential


Building Claims: Reason why claims get rejected.

Rejection Reason for rejection

A peril your client isn’t

covered for caused the

loss

Claiming for a loss caused by “gradual deterioration” or “maintenance”,

when it is excluded from cover in the plan wording.

Poor design and faulty

workmanship

This is usually not covered by insurers.

Retaining walls not built

to acceptable standards

This is usually not covered by insurers.

Subsidence This is usually excluded for houses built on clay.

Unoccupied premises The premises are left unoccupied for longer periods than what is shown

on the Plan Schedule.

Movables not covered Clients try to claim for movable items under this section of cover, which

only provides cover for permanent fixtures.

The settlement process The settlement process includes steps to ensure that an item is either repaired or replaced or a

client reimbursed for their loss. This includes:

Damage to the building:

▪ Discovery Insure will appoint a service provider.

▪ Discovery Insure will settle payment with the service provider after repair or replacement

of the damage or lost item.

▪ Client may also benefit from FastTrack claims which replaces clients’ specified electronic

devices within 48 hours. If this promise is not met, Discovery Insure will waive the client’s

excess.

Household content and building insurance are very similar. Household contents are all the items inside your home that can be moved. If you turn your house upside down, everything that falls out will be covered under household contents. Buildings insurance covers the physical structure of the house. The risk for both is often the same, e.g. if there is a fire the house as well as the content will be at risk.




of 249

Confidential

SmartAdvice

When we capture a quote we will use all of that information to ensure that we capture the quote

accurately, so that we can get the correct premium in relation to the client’s risk profile.

Above is a screendump of the fields that need to be completed when capturing a

quote.

1

1

3

2

4

5

6

Building info Sum insured must include demolition and rebuilding cost

not municipality value

Residence ▪ Don’t insure

commune ▪ Ask about

business use

Thatch ▪ Size of thatch

is important ▪ Safety

features need to be in place

Wall construction ▪ Use the main

entrance as measure

▪ Claims history important

Risk address ▪ Affects the

premium ▪ Indicates if

extra cover is required

Additional benefits ▪ Comprehensive

subsidence cover only if required

1 2 3

4 5 6




of 249

Confidential

Portable possessions

Portable possessions cover




of 249

Confidential

Specified items

High-risk items and individual items of value such as jewellery, cellphones, bicycles etc.

Unspecified items

General clothing and personal effects



Industry related Discovery Insure

▪ What are portable possessions?

▪ What does it cover?

▪ Valuation certificates

▪ Valuable items

▪ Proof of ownership

▪ What happens if it is not done?

▪ Motorized equipment

▪ Liability cover

▪ Discovery Insure’s portable possessions

policy

▪ Features of the portable possessions

policy

▪ Estimated Maximum Loss

▪ Items that are covered

▪ Limits applied


Understanding portable possessions cover Portable possessions insurance covers the risk of insured items being stolen, lost or damaged

anywhere in the world. There are different categories in the portable possessions section; general

clothing and personal effects and other categories for items that need to be more specifically

insured. Discovery Insure will cover the replacement value of items at the date of loss limited to

the sum insured. Policyholders must ensure the replacement value or estimated maximum loss

amount is up to date in order for Discovery Insure to pay the correct amount in the event of a

claim.

Estimated Maxmum Loss

The amount that the planholder has given as the maximum total loss they may suffer, per

category, from a single claim event.

Sum insured

The amount that the planholder has given as the cost of replacing their property with new, similar

items.




of 249

Confidential


Clients can choose an overall amount (sum insured) that will cover general items they wear or

carry around with them on a daily basis or from time to time. These items do not need to be

specified. If any of these items are stolen, lost or damaged, the maximum amount we will pay for

each item is limited. The limits that apply depend on the client’s plan type (Classic Plan, Purple

Plan or Essential Plan) and sum insured. The maximum amount we will pay out for each claim

event (for example where multiple items are stolen) is limited to the item limit and the overall

amount chosen under this section of cover.

The limits for each plan are:

Essential Plan R1 500 per item, pair or set

Classic Plan 20% of the sum insured with a maximum of R10 000 per item, pair or set

Purple Plan 25% of the sum insured with a maximum of R150 000 per item, pair or set

Suzie opts for the Classic Plan and chooses an overall amount of R40 000 for her general

clothing and personal effects sum insured. If Suzie claims for an item under this section of

cover, the most she could claim for each item would be R8 000 (the smaller of 20% x R40

000 and R10 000). The most she could claim for each event is R40 000.

Not all valuable items can be covered under the general clothing and personal effects section and

may need to be specified.

Please refer to section 11.1 of the Plan Guide for a complete list of these items under the various

plan types.

For example, bicycles, stamp, medal and coin collections and items kept in safe deposit boxes

always need to be specified under all plan types. In addition, under the Essential and Classic Plan,

items such as laptops, cellphones and iPads need to be specified.

Specified items Clients should specify valuable items if they are:

• Not covered under the general clothing and personal effects section (in terms of section

11.1 of the Plan Guide); or

• Covered under the general clothing and personal effects section, but are worth more

than the item limit.

https://www.discovery.co.za/discovery_coza/web/linked_content/pdfs/insure/plan_guide.pdf




of 249

Confidential

If any of these items are stolen, lost or damaged, Discovery Insure will pay the replacement value

of the item, limited to the sum insured chosen for the respective items. It is important to make

sure the value specified is up to date and is sufficient to cover the replacement of the items. For

example, if the client specifies a laptop for R10 000 and it is stolen, we will replace the laptop with

the same or similar model. If we are able to replace the laptop for R7 000 we will do so even

though it is below the specified amount.

There is no limit to the amount clients can choose to specify their valuable items for. However, if

the total value of their portable possessions exceeds R200 000, the acceptance of their plan will

be subject to Risk Management’s assessment. Risk Management will decide if the plan will be

accepted or if it will need to be amended based on the particular circumstances.

Some useful examples of how to insure a client’s portable possessions on the various plan

options available through Discovery Insure.

John is single and lives alone in a two-bedroom flat. He has an extensive wardrobe and

estimates the total value of the clothes he wears and personal effects (such as his

briefcase), on any given day to be approximately R10 000. This sometimes includes his

designer leather jacket worth R2 000. John also has a R8 000 iPhone, a R6 000 watch and a

R20 000 laptop that he takes everywhere with him. John does not qualify for the Purple

Plan.

Cover on the Essential Plan (same example)

In order for John to have sufficient portable possessions cover he would need to purchase the

following:

• John needs to select at least R10 000 General clothing and personal effects cover. This will

give him cover limited to R10 000 per event, including a per item, pair or set limit of R1

500 for general items of clothing and personal effects. As per section 11.1 of the Plan

Guide, John will not have cover for certain items under this section of cover, such as

laptops, cellphones and bicycles.

• John will also need to specify the following items:

o His R2 000 jacket which is valued at more than the R1 500 item limit

o His R6 000 watch which is valued at more than the R1 500 item limit

o His R8 000 iPhone which is not covered under General clothing and personal

effects

o His R20 000 laptop which is not covered under General clothing and personal

effects




of 249

Confidential

Cover on the Classic Plan

In order for John to have sufficient portable possessions cover he would need to purchase the

following:

▪ John needs to select a minimum of R10 000 General clothing and personal effects cover

(but we would recommend he specifies more). This will give him cover limited to R10 000

per event, including a per item, pair or set limit of R2 000 (20% x R10 000) for general

items of clothing and personal effects. Should the sum insured be more than R10 000

then the limit will be 20% of the sum insured with a maximum of R10 000 per item, pair or

set. As per section 11.1 of the Plan Guide, John will not have cover for various items under

this section of cover, such as laptops, cellphones and bicycles.

▪ John will also need to specify the following items:

o His R6 000 watch which is valued at more than the R2 000 item limit. He would be

fully covered if he chooses a General clothing and personal effects sum insured of

R30 000 (i.e. 20% X R30 000)

o His R8 000 iPhone and R20 000 laptop which are not covered under General

clothing and personal effects

Irrespective of his plan type, it’s advisable for John to choose General clothing and personal

effects cover of more than R10 000.

For example, when John goes away on holiday, he may pack a suitcase with more clothing and

other items than what he needs for one day. If his suitcase is stolen, his chosen level of cover may

be too low to cover all the items.

If John had qualified for the Purple Plan, he could have selected R80 000 General clothing and

personal effects cover, which would give him cover limited to R80 000 per event, including per

item, pair or set limit of R20 000 (R80 000 x 25%). If the sum insured is more, then the limit will be

25% of the sum insured with a maximum of R150 000 per item, pair or set.

This excludes bicycles, stamp, medal and coin collections and safe deposit items which would

need to be specified. John would also not need to specify his cellphones, watch or laptop in this

case.

In addition, if John had any items in a safe deposit box, he would need to let us know, irrespective

of which plan he is on, to make sure they are appropriately covered.




of 249

Confidential

Discovery Insure’s portable possessions cover

Discovery Insure will cover portable possessions, electronic devices and motorised equipment

that belong to the client for accidental loss or damage anywhere in the world.

What items are covered?


Discovery Insure will cover the planholder for loss or damage to the following:

▪ Clothing and personal effects that are normally worn or carried by or on a person

▪ Personal sporting equipment that is normally worn or carried by or on a person

Items that need to be specified on the Essential and Classic Plan Items that are excluded from general clothing and personal effects and items with a value that is

greater than the maximum general clothing and personal effects limit should be insured

separately. These items should be specified under the appropriate category.

If the client only takes the item out of their house once in a while, that item must still be

covered under a portable possessions policy. Failure to do so may result in the claim being

rejected should a loss occur outside of the risk address where the item is covered under

household contents.




of 249

Confidential

The following items need to be specified and will not be covered otherwise:

Classic and Essential Plan Purple Plan

▪ Portable computing equipment and

mobile communication devices and their

accessories, such as laptops, tablets,

cellphones etc.

▪ Audio-visual devices

▪ Stamp, medal and coin collections

▪ Motorised equipment, such as electric

wheelchairs, ride-on-mowers, golf carts

▪ Firearms

▪ Surfboards, paddle skis, kayaks, canoes,

kite boards, surf skis, windsurf boards and

sailboards

▪ Pedal cycles

▪ Caravan and camping equipment

▪ Bank deposit items

▪ Any property more specifically insured

▪ Jewellery and watches over the clothing

and personal effects limit as shown in the

Benefit Limit Annexure

▪ Stamp, medal and coin collections

▪ Pedal cycles

▪ Bank deposit items

▪ Jewellery and watches over the clothing

and personal effects limit as shown in the

Benefit Limit Annexure

Features of the Discovery Insure portable possessions policy

Discovery Insure will cover the replacement costs of these items at the date of loss limited to the

sum insured. Clients must ensure that the sum insured is equal to the new retail price of the

specified item and that the estimated maximum loss they give to Discovery Insure is sufficient

under all circumstances if applicable.




of 249

Confidential

Using estimated maximum loss An estimated maximum loss is the estimated value of the largest possible loss from a single event

that a client will have for the items covered in a category of specified portable possessions cover,

while away from their home. If clients choose the estimated maximum loss option, they will pay

a lower premium. The value of the estimated maximum loss is generally equal to the sum of the

value of most expensive items in that particular category that are taken out together most often.

Eric has six bicycles and has specified each one with the following values: R10 000;

R30 000; R35 000; R45 000; R50 000 and R60 000; amounting to R230 000. Jack only ever

leaves the house with two bicycles at any one time. Jack can use the estimated maximum

loss feature to reduce his premium.

By choosing an estimated maximum loss of R110 000, Jack will be covered up to a

maximum of R110 000 in the event of a valid claim. Instead of paying a premium based

on R230 000, Jack pays a premium based on R110 000 only. The R230 000 does not need

to form part of his household contents value (as any item that is specified does not need

to be included in the household contents sum insured) saving Jack even more money.

In the event of a valid household contents claim, for example, Jack’s house burns down

and all the bicycles are destroyed, Discovery Insure will pay the full R230 000. In the event

that Jack has two bicycles with him at one location and his wife has two bicycles with her

at another location and an insured event happens at each location on the same day, both

events will be covered up to a maximum of R110 000.

Estimated Maximum Loss

EML: R110 000

Minimum EML: two most expensive items from the same

category

Insured items

R10 000 R45 000

R35 000 R30 000

R50 000

Total sum insured: R230 000

R60 000




of 249

Confidential

Estimated maximum loss: Categories of specified items ▪ Cameras and media devices

▪ Firearms

▪ Jewellery

▪ Pedal cycles

▪ Watches

Important details to be aware of

▪ Clients need to insure at least two items within a category to be able to use the Estimated

Maximum Loss (EML) feature.

▪ The minimum Estimated Maximum Loss (EML) value that clients can select is the

combined value of the two most expensive items insured in the category.

▪ Specified items will be covered at replacement value up to a maximum of the client’s sum

insured for events that occur in the home, regardless of whether the client has used the

Estimated maximum loss feature or not.

▪ Proof of ownership and, if necessary, valuation certificates may be requested at claims

stage.

Remember to explain this unique benefit to clients who are specifying more than one

portable possession under one category of their cover.

My Jeweller

▪ Specified jeweller: Have jewellery items repaired or replaced by the original jeweller.

▪ Limits: Limited to the item sum insured, subject to providing a valuation certificate,

together with proof of ownership.

▪ Clients can choose to have their jewellery items repaired or replaced by their specified

jeweller at claims stage.

▪ Clients pay an additional premium for this benefit.




of 249

Confidential

Theft from unattended vehicles Theft from an unattended vehicle, without visible, violent and forcible entry into the vehicle is

subject to the additional excess as shown in the Excess Annexure. (Additional 20% of the claim on

all plans).

Upgrade to the latest Apple or Samsung phone every year Purple plan clients will qualify for an upgrade to the latest Apple or Samsung cellphone. The

qualifying criteria include:

▪ At least two cars insured and

▪ Clients have both household and buildings cover with Discovery Insure

▪ Clients have had no claims on the Purple Plan in the past 12 months

Technical detail: ▪ Clients will need to trade in their old phone. Discovery will cover the difference between

the trade value of the client’s old phone and their upgrade up to R10 000

▪ The client is liable for any amount above R10 000

▪ The client qualifies for one upgrade per Plan every 12 months subject to availability of the

phone.

Safe deposit box benefit

Discovery Insure will pay for the loss of or damage to items that are kept in a safety deposit box

at a registered bank vault, or similar registered institution up to the sum insured as shown in a

client’s Plan Schedule. Clients need to inform as soon as they take any items out of the safety deposit boxes, so that

these items can be appropriately covered. If they do not inform us, these items will not be

covered unless they have chosen General clothing and personal effects cover. In this instance, the

terms and conditions of this cover as well as the limits shown in their Benefit Limit Annexure will

apply.

Lisa has a Discovery Insure Classic Plan and uses a safety deposit box. She selects a sum

insured of R40 000 under General clothing and personal effects. Lisa takes her bracelet

worth R150 000 and a firearm worth R10 000 out of her safe deposit box. She forgets to

inform Discovery Insure that she has removed the items. The maximum cover she will

have is R8 000 (R40 000 x 20%) per item. The total cover is therefore R16 000.

It’s important to remember the following:




of 249

Confidential

▪ A R750 excess, or the client’s chosen excess, will apply where items are stolen, damaged

or reported missing.

▪ Money and documents are not covered under this section.

▪ At claims stage, clients need to provide Discovery Insure with a proof of ownership and/or

a valuation certificate, or else their cover may be limited as per the Benefit Limit

Annexure.

▪ At claims stage, if the item was specified as being in safety deposit the client will also need

to provide proof that the items were removed from the safety deposit box.

Dual insurance Dual insurance is costly for the parties involved - an insurer will have to return t h e

premium that has already been collected, a broker may have to return 50% of the

commission earned on this premium and the client may only be returned that portion of the

premium that he is legally entitled to and this is normally limited to a period of 3 years by

common law. Clients who have insured their assets with more than one insurer for more

than 3 years in error will therefore lose money.

Norah insures her engagement ring for its correct value R20 000 on her policy. Bill, her fiancé

Portable possessions limits applied

1. The client is on the Essential Plan and has a general clothing and personal effects limit of

R20 000.

The client did not specify his leather jacket valued at R7 900.

His cellphone is then stolen.

The client will only be paid R1 500.

2. The client is on the Classic Plan and has a general clothing and personal effects limit of

R40 000.

The client did not specify her handbag valued at R18 000.

Her laptop is then stolen.

The client will only be paid R8 000 (20% of the sum insured).

3. The client is on the Purple Plan and has a general clothing and personal effects limit of

R100 000.

The client did not specify her bicycle valued at R18 000.

The bicycle is stolen.

She will be paid the R18 000 (The maximum limit on the Purple Plan is 25% of the sum insured

which in this case is R25 000 up to R50 000 per item, pair or set) – the claimed amount is less

than the limit.




of 249

Confidential

who bought the ring, insures it for R20 000 on his policy without telling her. Six months later

the ring is lost and Norah puts in a claim with her insurer. Bill does likewise.

It is then discovered by the loss adjuster that the ring is dually insured. Both claims are halted

and now the outcome of the claim will be delayed as an unpleasant enquiry begins - was the

dual insurance in error or fraudulent? If found to be fraudulent both claims will be rejected. If

not, then each insurer will bear the rateable portion of the loss - in this case 50% of the claim

each.

Placing them in the same position as they were before the loss. The opposite of this is

enrichment, where a person is in a better position following a loss than they were before the

loss occurred. A person may not use their insurance to enrich themselves and by insuring the

same item twice and claiming for it twice indicates that they have not been indemnified but

enriched.

This applies to all items that have a finite or discernible value. This does not apply to life,

investment or personal accident policies - here a person may insure for whatever amount

and across however many policies that they require or can afford, for here it is realised that no

one can place a value on a human life.

In short-term insurance a person may have more than one policy on a certain item but the

total amount of cover should never exceed the item's actual value.

Screen protector benefit Discovery Insure clients with specified cellphones can receive a screen protector at no additional

charge from Tiger Wheel & Tyre or their nearest Discovery Insure Drive Centre. Should the client

have an accident claim where the screen is damaged within 12 months of applying the screen

protector, the excess to the claim will be waived.

Technical details ▪ Clients will qualify for this benefit when:

o They have a specified Samsung or Apple cellular device on they cover.

o Their premiums need to be paid and up to date

▪ Clients will need to get a new screen protector every 12 months to qualify for the excess

waiver.

▪ Classic, Essential Plan clients will get a screen protector for each phone they have

specified.

▪ Purple Plan clients will be able to collect up to four screen protectors per year

▪ Screen protectors will be available for the iPhone 6 and up, and the Samsung S6 and up.

▪ At claims stage the client will need to prove their screen protector was on the phone at

the time of the claim, this will be verified by the supplier who repairs the phone or deems

it irreparable.




of 249

Confidential

General information

Understanding laptop cover

Start by establishing if the client needs laptop cover for both inside and outside of their home.

If the client wants to cover their laptop anywhere in the world, which includes both inside their

home and outside their home, they need to select portable possessions cover as follows:

▪ For cover under the Essential Plan or Classic Plan they need to specify their laptop.

▪ For cover under the Purple Plan they can either specify their laptop or choose to insure it

under the category: General clothing and personal effects. If it’s covered under General

clothing and personal effects they need to choose an overall sum insured large enough to

make sure that the per item limit in this section of cover is sufficient to cover their laptop.

▪ For example, the client chooses General clothing and personal effects cover of R100 000. The

per-item limit is 25% of the sum insured (R25 000) with a maximum of R25 000. In this

example the client will be covered for a general clothing and personal effects claim, which

includes a laptop, with the following limits: R100 000 maximum cover per claim and R25 000

maximum cover per item.

If the client never takes their laptop outside of their home and only wants cover inside their

home, they can insure it under the household contents section of their cover. When choosing

household contents cover, clients must remember to insure all their household items for their

total replacement value. Failure to do this will result in average being applied at claims stage.

In this instance it is important to let the client know that accidental damage cover (for example, if

they drop their laptop or spill coffee on it) is specifically excluded for laptops under the

household contents section of cover. If your client wants accidental damage cover for their laptop

they keep inside their home, they need to insure their laptop under the portable possessions

section of their cover as explained above.


Clients need to be aware of the following

General clothing and personal effects Specified items This aims to cover clients’ general clothing and

personal effects when they are away from

home. Clients need to know:

▪ Clients can specify items that cannot be

covered under General clothing and

We already mentioned the general clothing and personal effects cover as well as

the specified items




of 249

Confidential

▪ The per item, pair or set limits that apply.

▪ The overall claim limit that applies

according to their selected sum insured.

▪ Which items are not covered at all under

this category of cover?

This cover is optional and clients need to

select it. Even if a household contents asset

inventory is completed at their homes, they

still need to select this cover if they want all

risks cover away from home on a worldwide

basis.

personal effects or items that do not enjoy

full cover under that section of cover.

▪ Clients need to choose their sums insured

appropriately. At claims stage Discovery

Insure will reimburse clients based on the

lower amount of either the retail value of

their item or the sum insured of their

item.

▪ For example, a client will be reimbursed

R8 000 for a stolen watch insured for R10

000, but only worth R8 000 and similarly

will be paid R15 000 for a stolen watch

insured for R15 000, but worth R20 000.

This is consistent with the principle of

indemnity – putting the client back into

the same position before the loss.

▪ Clients need to make sure that their

general clothing and personal effects

items are covered under the General

clothing and personal effects section of

cover and should not be covered under

the “Other” section of Specified items

cover.

The claims process

Damage Theft

1. ASSESSMENT The client needs to get an assessment

report from one of Discovery Insure’s

preferred assessors. The items may

need to be sent away for an

Not applicable

Estimated maximum loss also falls under this section. This is the amount that the client

has given as the maximum total loss that he may suffer, per category, from a single claim

event (outside the house). This was already discussed previously.




of 249

Confidential

assessment at one of Discovery Insure’s

preferred assessors.


the client has cover and that their premiums are up to date. Discovery Insure

could check:


▪ Adequate cover (Specified items and General clothing and personal

effects)

▪ Sum insured and limits, including estimated maximum loss

▪ Proof of ownership and validation certificates

▪ If the items are registered as stolen with the police or blacklisted, where

relevant or applicable




▪ If a claim falls within the client’s cover and all the plan details are correct, then



adviser will be sent a rejection letter, which contains:


o Details of the Short-term Insurance Ombudsman and FAIS Ombud,

so that the client can appeal the decision if they would like to.






Damage to the item:

Discovery Insure will appoint a service provider.

▪ Discovery Insure will settle payment with the service provider after repair or replacement

of the damaged item.

Portable possessions claims: reasons why claims are rejected

Reason for

rejection





of 249

Confidential

Item not specified The client only took out general

unspecified cover, and e.g. an iPad

should have been specified.

If the client did an asset inventory, he would have

been informed that it should have been specified.

No proof of ownership The client could not produce any

form of proof of ownership.

The client can make use of the Online Vault to save

proof of ownership. This would speed up the claims

process and the basic excess would be waived.

Exclusions

Clients will not enjoy cover under this section for:

▪ Money and documents

▪ Motor vehicles, motorcycles, trailers, caravans, hang gliders, air and motorised watercraft

▪ Electrical or mechanical breakdown

▪ The cost of reproducing sounds, data and images on tapes, records, film or magnetic

media

▪ Loss or damage due to electronic viruses, trojans, worms or similar destructive media

interferences

▪ Loss or damage:

o Caused by theft of clothing from a washing line on the premises of the dwelling

o To property, that is bought specifically to be sold in a business transaction

o To property more specifically insured

o To property dispatched under a bill of lading (the bill of lading serves as a receipt

of shipment when the good is delivered to the predetermined destination)

o To tools used for business or professional purposes unless specified

o Discovery Insure recommends that certain vehicle accessories be specified, such

as ‘loose items’ – e.g. baby seats, seat covers, tools, water or fuel containers on

4x4 vehicles, rugs, tow ropes, roof-racks, travel accessories and side tents.

SmartAdvice


accurately, so that we can determine the correct premium in relation to the client’s risk profile.




of 249

Confidential

Above is a screendump of the fields that need to be completed when capturing

a quote.

As discussed previously most of the underwriting rules are built into the system. While loading a

quote, certain validation triggers will pop up on the screen and stay there until they have been

addressed. If not addressed, the quote will be indicative and must be referred to Risk

Management for underwriting.

Category ▪ EML is loaded per

category ▪ Items will be

covered for full value inside the house

▪ Outside the house client can only claim up to the EML value

Description ▪ Estimated

maximum loss (EML) is only for Specified items

▪ Each item must have its own value

▪ Reduction in premium for the client

Portable possessions ▪ Number of losses

and incidents are important

▪ Number of years of portable possessions insurance

1

2

3

1 2 3




of 249

Confidential

Watercraft

Watercraft insurance




of 249

Confidential

Discovery’s Watercraft Insurance



▪ Watercraft insurance

▪ What can be insured under

watercraft?

▪ Liability

▪ Maintenance

▪ Discovery Insure’s watercraft policy


▪ Benefits included


▪ Exclusions


What is Watercraft Insurance? ▪ This type of insurance covers different classes and types of watercraft which are normally

used socially. Watercraft insurance covers accidental damage, theft and third party

claims.

Discovery’s Watercraft Insurance

▪ Discovery Insure will cover sail boats, rubber ducks, wet bikes and jet skis; however the

insured watercraft cannot exceed:

▪ Eight metres in length.

▪ 110kph on water.

▪ A horsepower rating of 250 hp per engine and/or 300 hp in total if there is more than one

engine fitted.

▪ 100 horsepower for rubber ducks fitted with engines.

Boat

Boats, sail boats, ski boats, rubber ducks, wet bikes and jet skis as listed in the Plan Schedule.

This includes the hull, superstructure, fittings, machinery, engines, motors, gear and equipment that

would normally be sold as one unit excluding the trailer.

A planholder does not need a skipper’s licence but Discovery Insure does require the

watercraft to have a skipper with a valid licence or the watercraft must be under the

supervision of someone who does.




of 249

Confidential

Discovery Insure will:

▪ Choose to repair, replace or pay out for loss or damage to the watercraft up to the

amount stated in the client’s Plan Schedule.

▪ Never pay more than the retail value of the insured watercraft at the time of the loss or

damage less any excess.


Discovery Insure will only cover watercraft for private use (the watercraft must only be used for

social, domestic and pleasure purposes) for the following:

Loss or damage to the boat

Discovery Insure covers watercraft against accidental loss or damage. The basic excess payable

on claims for loss or damage to the boat is R3 000.

On the Classic and Purple Plans there is no excess payable for:

▪ Theft, hijacking, fire, lightning, explosion, storm, water, hail, snow, flood, earthquake or

malicious damage.

Liability to others

Discovery Insure will cover the planholder or any person using the boat with the planholder’s

permission or any water skier being towed by the boat for all amounts which the holder becomes

liable for in respect of:

▪ Death or bodily injury

▪ Loss or damage to property not belonging to the holder or any other person using the

boat

▪ Raising or not raising the wreck

▪ Expenses paid by the holder with Discovery Insure’s prior written consent.

▪ Legal costs paid with Discovery Insure’s prior written consent

▪ Cover is limited to a maximum of R2 000 000




of 249

Confidential

▪ Any claim amount is limited to the maximum stipulated in the Benefit Limit Annexure.

The following events will not be covered under liability to others:

▪ Death or bodily injury to any person employed by the planholder, any person using the

boat or any water skier

▪ Accidents to any person engaged in kiting or other airborne sport or any liability arising

there from while being towed by the boat or preparing to be towed, until safely back

aboard the vessel

▪ Accidents while the boat is being moved by a road or rail vehicle, ship or aircraft

▪ Damages or penalties under contract

▪ Fines or penalties imposed under any statutory code or common law for any offence

being committed

▪ Death or bodily injury to any person operating or employed by the operator of a shipyard,

repair yard, slip way, yacht club, marina, sales agency or similar organisation

▪ Cover is limited to a maximum of R2 000 000

Benefits included

These benefits are automatically included as part of the Discovery Insure Watercraft policy.

Emergency and rescue expenses

Discovery Insure will cover all reasonable expenses incurred while trying to minimize or avoid a

loss that would have been covered by the contract however the amount claimable is limited to:

Essential Plan: R5 000

Classic Plan: R5 000 Purple Plan: R10 000




of 249

Confidential

Optional benefits

These benefits can be added to a Discovery Insure contract to enhance the cover. It is important

to make sure these benefits have been selected on the Insure quote as they are not automatically

included.

Credit shortfall

When the watercraft is declared a total loss and there is a gap between the value of the vessel

and the statutory settlement balance, Discovery Insure will pay the statutory settlement balance

less:

▪ The appraisal value of the vessel; and

▪ Any co-payment that needs to be paid by the planholder; and

▪ Any amount refundable to the planholder (in terms of the credit agreement as at the date

of loss, not limited to inter alia insurance premiums, including short-term insurance,

credit life or motor warranty premiums); and

▪ Any extra amounts added to the principal debt in terms of the credit agreement after its

start date, and any finance charges and interest relating to these extra amounts.

▪ The maximum amount that Discovery Insure will pay is shown in the Benefit Limit

Annexure.

To help with the processing of the credit shortfall claim, the planholder must:

▪ Give us and/or authorise Discovery Insure to obtain a copy of the credit agreement or

other agreement between the planholder and the credit provider, a statement of their

account with the credit provider with a full transaction history and a copy of the credit

application; and

▪ Give Discovery Insure proof, information and affidavits that it may need to process the

claim.

▪ The costs associated with obtaining this information must be covered by the planholder.

▪ If the credit agreement has been terminated for whatever reason, the planholder will not

be entitled to receive any benefits. It is the planholder’s responsibility to ensure that the

benefit is removed from the contract when it is no longer needed.

Credit shortfall is limited to the maximum amounts listed below:

Essential Plan: R150 000

Classic Plan: R250 000 Purple Plan: R250 000




of 249

Confidential

Conditions for cover

Planholders must ensure they do the following in order to enjoy proper coverage:

▪ They must take all reasonable steps to minimize loss or damage.

▪ They must protect, maintain and look after the vessel in a proper state of repair and

seaworthiness.

▪ If any motor is immersed in water by the holder, they must immediately flush it out.

▪ They or another competent person must be on board when the boat is underway.

▪ The boat must be transported on a properly constructed and designed trailer.

▪ The boat must be fitted with two working motors when the boat is being launched

through surf unless the boat is a rubber duck, wet bike or jet ski.

▪ If the boat has an inboard engine it must be fitted with an approved and fully functional

automatic fire-extinguishing system.

Exclusions

These are events which Discovery Insure will not cover.

▪ While the insured boat is:

o Being used and is not in a seaworthy condition;

o Being used for any purpose other than private use;

o Let out on hire or charter;

o Being towed on water except when in need of assistance or in connection with

laying up, fitting out or repairs;

o Towing or saving another vessel other than one in distress;

o Participating in mechanised racing or speed tests, or any trials in connection with

this;

o Left moored or anchored unattended unless it moored or anchored in a

recognised place of safety;

o Being moved or towed by any person who does not have a valid driver’s licence;

o Being moved or towed by any person who is under the influence of, or over the

statutory limit of intoxicating liquor, or drugs with a narcotic effect.




of 249

Confidential

▪ For outboard motors that are not securely bolted to the boat and in respect of theft

unless the outboard motor is securely locked onto the boat by means of an antitheft

device;

▪ For wet bikes and jet skis left unattended in the open or on a trailer;

▪ Due to corrosion;

▪ Due to mechanical or electrical breakdown of machinery, engines, motors, batteries and

their connections. We will compensate the holder if the mechanical or electrical

breakdown is caused by an external event that is not excluded.

▪ Sails or protective coverings split by the wind or blown away while set unless there is

damage to the spars which the sails are attached to or if such damage happens due to

the boat being involved in an event that is not excluded;

▪ To masts, spars, sails, standing or running rigging while the vessel is racing;

▪ In respect of any part having a fault in design or construction;

▪ Due to any fault resulting from either neglect or breach of contract in respect of any

repair or alteration work;

▪ For personal effects, fishing gear, navigational charts, life jackets, first aid kits, water sport

and recreational equipment;

▪ For theft of inflatable boats that are deflated unless the theft follows upon forcible and

violent entry into the place of storage. A vehicle is not considered as a place of storage.

▪ Caused by the intake of foreign matter into the cooling system of the machinery, motors

or engine;

▪ While the boat does not follow the design and construction requirements, or if the boat

does not have a valid Certificate of Fitness or Local General Safety Certificate, or if it is not

in control of any person who does not have a valid Certificate of Competence, as set out

in the Merchant Shipping Regulations, 2007 (SAMSA) if and as required by legislation;

▪ For consequential loss.




of 249

Confidential


Clients need to be aware of the following

Retail value

▪ The watercraft does not have a retail value. The value of the boat is detailed in the Plan

Schedule at the time of the loss or damage.

Appropriate cover must be selected

▪ Type of watercraft

▪ The sum insured

▪ Specify if there is glitter paint or standard

Territorial limits

▪ Namibia, Mozambique and the Republic of South Africa or their territorial waters (waters

extending to a maximum of 20km off their coasts) and Botswana, Lesotho, Swaziland,

Malawi, Zambia and Zimbabwe.

Portable possessions

▪ No cover for motorized watercraft under this section.

Boat trailer

▪ Must be insured under the vehicle section of the plan.

Care of the watercraft

▪ Client must protect and look after the watercraft and maintain it in a proper state of

repair and seaworthiness.

▪ Your client must immediately flush any motor immersed in water.

Criteria to insure a watercraft

▪ The hull may not exceed 8 m in length.

▪ The boat may not exceed more than 110 kilometres per hour.

▪ An engine may not exceed a horsepower (hp) rating of 250 hp per engine.

▪ A boat may only have 300 hp in total if there is more than one engine fitted.

▪ A limit of 100 horsepower engine for rubber ducks fitted with engines.




of 249

Confidential

Discovery Insure claims process


Watercraft claims: reasons why claims are rejected

The claim will be rejected if the client or any person using the watercraft or water skier being

towed resulting directly or indirectly from legal liability for:

▪ Death or bodily injury to any member of the client’s household, or a member of the family

that normally resides with him, any person employed by him, any person using the

watercraft or any person towed.

▪ Accidents to any person engaged in kiting or other airborne sport or any liability arising

therefrom while being towed by the watercraft or preparing to be towed, until safely back

aboard the vessel

▪ Accidents while the watercraft is being moved by a road or rail vehicle, ship or aircraft

o Damages or penalties under contract

o Fines or penalties imposed under any statutory code or common law for any

offence being committed

o Death or bodily injury to any person operating or employed by the operator of a

shipyard, repair yard, slip way, yacht club, marina, sales agency or similar

organisation

o Where the watercraft is used to earn income or rewards.

The claims process on watercraft is the same as the other insured items with

the exception of:

An assessor will typically not be sent out to view the damaged watercraft.

The client will need to send Discovery Insure a quote for repair.

We will review the quote and approve the repair, if all is in order.




of 249

Confidential

SmartAdvice


accurately, so that we can determine the correct premium in relation to the client’s risk profile.

On the previous page is a screendump of the fields that need to be completed

when capturing a quote.

1

2

3

4

1 2

3 4

Parking location ▪ Need to know where the

boat is kept ▪ Need to know what the

security measures are

Cover detail ▪ Need to know what type of

watercraft it is ▪ Load the different values ▪ Total sum insured is very

important

Watercraft details ▪ Load the make of the craft ▪ Year of manufacture is

important ▪ Horse power is limited ▪ Engine capacity is limited ▪ Length of the hull is limited

Additional benefits ▪ Credit shortfall is limited




of 249

Confidential

Personal liability insurance




of 249

Confidential

Discovery’s Personal liability insurance



▪ What is personal liability?

▪ Personal liability and the master-

servant relationship

▪ Discovery Insure’s personal liability

policy


▪ Benefits included

▪ Exclusions


What is Personal liability insurance?

This type of insurance provides cover for legal liability that may be incurred:

▪ Due to damages caused to a third party by the insured party.

▪ Due to property damage caused to a third party which can be very costly.

** The client automatically gets Personal Liability.

** The client can increase the limit from R2.5 million to R20 million depending on the plan

type.

For these reasons, it is extremely important to have adequate personal liability insurance in

place. This is ordinarily found under motor, household or homeowner’s insurance and generally

speaking cannot be taken out as a standalone benefit.

It is important to remember that Personal liability insurance covers negligence and not intent.

A client will only be covered under personal liability in the event that negligence was proven.

Let’s say that you are pulling your vehicle out of your driveway. As you open the gate your dog runs

out and bites the postman delivering mail.

The postman then decides to take you to court over the injuries he has sustained. As a Discovery

Insure client you will have cover for this type of incident.




of 249

Confidential




of 249

Confidential

Discovery’s Personal liability insurance

Discovery Insure will provide cover if the planholder becomes legally responsible to pay for:

▪ Accidental death, bodily injury or illness;

▪ Accidental loss or damage to property;

Of any person:

▪ Other than any person who is related to the planholder and normally living with them, OR

▪ Who is not employed by the planholder, except the planholder’s domestic worker (in

other words, the planholder could be liable to their domestic worker)

Claims which arise as a result of the planholder being the owner of a dwelling or building will only

be covered if the building or dwelling in question is covered by Discovery Insure.

Personal liability due to domestic animals

Clients will also be covered for amounts that they may become legally liable to pay to someone

for accidental death, bodily injury or illness, or accidental loss or damage caused to property, by

their domestic animals. For example, if the client’s dog bites someone who is visiting their home,

they will be covered up to their sum insured which is stated in their Plan Schedule.

Benefits included

These benefits are automatically included as part of the Discovery Insure Personal liability plan.

Emergency medical expenses of guests and domestic employees

Discovery Insure will cover medical expenses paid by the client following bodily injury to guests or

full-time domestic employees where the injury was caused directly by a fault in the dwelling or

outbuilding, as long as it is not covered by another insurance contract or facility.

Tenant’s liability

Discovery Insure provides cover for tenants should they incur legal liability for any amount due to

the legal owner, following loss to the building or the dwelling that was caused by an insured

event.




of 249

Confidential

Cash cards and credit cards

Should a client experience the illegal use of their credit cards or cash cards by any person who is

not a member of their family or household, Discovery Insure will cover any loss or liability

incurred.

Hole-in-one

Should the planholder score a hole-in-one in an amateur game of golf at a recognised golf club in

South Africa, Discovery Insure will cover this event. Confirmation from the secretary of the club as

well as proof of expenses is required for a valid claim.

Full-house

If a planholder is part of a team of two, three or four which, playing as amateurs, scores a full-

house (that is eight or nine bowls to count) in a game of bowls in any competition played

following the rules of the South African Bowling Association, at any recognised bowling club,

Discovery Insure will cover the claim for this full-house. Confirmation from the secretary of the

club as well as proof of expenses is required for a valid claim.

Security companies and garden services

Discovery Insure will cover liability that the client incurs in terms of a written contract entered

into with organisations providing security, armed response or garden services at the dwelling

insured under the household contents section.

Wrongful arrest

Discovery Insure will compensate the planholder for legal liability to any person resulting from

wrongful arrest or frisking of a person, including assault relating to the wrongful arrest or frisking.

Discovery Insure will compensate the client. (This is not included under the Essential Plan).

It is tradition among golfers that if a golfer is lucky enough to score a hole-in-one in a round

of golf, they need to celebrate by buying a round of drinks at the bar of that particular golf club. The

same tradition applies for a full-house in a game of bowls.




of 249

Confidential

Exclusions

These are events which Discovery Insure will not cover:

▪ Death or bodily injury to the planholder or a member of their family or any employee,

other than their domestic staff, arising out of their employment duties

▪ Loss of or damage to property belonging to or in the custody or control of the planholder

▪ Directly or indirectly due to:

o The planholder’s employment, business or profession;

o The ownership of land or buildings other than buildings insured by the buildings

section of this and land on which they are situated, provided the land is used for

residential purposes;

o The occupation of land or buildings, other than the planholder’s dwelling or any

residential property temporarily occupied by the planholder;

o The use of any motor vehicle, motorcycle, scooter, three wheeler, quad bike,

caravan, trailer or air and motorized water craft other than hobbyists’ models and

toys, gardening implements and golf carts.

▪ That arises from an agreement between the planholder and any other party unless

responsibility would have attached in the absence of such an agreement except for

security companies and garden services.

▪ For any judgment, award, payment or settlement made within a country which operates

under the laws of the United States of America or Canada, or is subject to any order

which is made anywhere in the world to enforce such judgment, award, payment or

settlement or part thereof unless such would be enforceable in terms of a competent

court in the Republic of South Africa;

▪ For any punitive damages, fines, penalties or exemplary damages;

▪ Arising out of the reckless disregard by the planholder at the possible cost of their acts or

omissions;

▪ That is covered under any other insurance;

▪ Arising out of the planholder’s dishonest, fraudulent or malicious acts, or from physical

assault committed by them;

▪ Arising out of the purchase, sale, barter or exchange of any property (movable or

immovable) or the planholder’s failure to follow any obligations in relation to this;

▪ Arising from the ownership, possession, use or handling of firearms, air guns or animals,

other than domesticated animals;

▪ Arising from gradual causes which do not result from a sudden and identifiable event;




of 249

Confidential

▪ Arising out of seepage, pollution or contamination of any kind or type, or the cost of

cleaning up, removing, nullifying or reinstating property lost or damaged by seepage,

pollution or contamination.

SmartAdvice

When we capture a quote we will use all of that information to ensure that we capture the

quote accurately, so that we can get the correct premium in relation to the client’s risk profile.

The client automatically qualifies for Personal Liability if motor vehicle, household

content and/or building cover is added to the policy.

How much can the client get?

Essential Plan The client qualifies for R2.5 million cover with the option to buy up

Classic Plan The client qualifies for R2.5 million cover with the option to buy up

Purple Plan The client qualifies for R50 million cover

As per above: The client can increase the Personal Liability cover up to R20 million

depending on the plan type selected.




of 249

Confidential

Services




of 249

Confidential

Services


Discovery Insure

▪ Legal support

▪ Emergency assistance

▪ SmartService

▪ Claims processes

The following services and benefits are provided to all clients with a Discovery Insure policy:

Roadside assistance when an insured vehicle breaks down

Discovery Insure offers all planholders with motor vehicle cover emergency roadside assistance

in the event of a mechanical or electrical breakdown, flat tyre, flat battery or any other roadside

related emergency including:

▪ Towing to the closest place of repair or safekeeping.

▪ Arranging client transport following a breakdown.

▪ Jumpstarting the vehicle – this assistance excludes the costs of parts, components,

lubricants and similar provisions.

▪ Changing a flat tyre.

▪ Delivery of up to 10 litres of fuel if the holder has run out.

▪ Locksmith services if keys have been locked inside the vehicle.

How does emergency roadside assistance work? Discovery Insure clients will have the following emergency roadside assistance benefits:

ACCESS TO SERVICES AND BENEFITS




of 249

Confidential

▪ Towing their car to the nearest place of repair or safekeeping

▪ Transporting them to their home or destination of their choice if it’s within 100km of

where their car has broken down (up to a maximum limit of R750). If it’s not within

100km, then clients can choose one of the following options:

o One night’s accommodation up to a limit of R1 000, or

o A taxi service up to a limit of R500, or

o A rental car service up to a limit of R500.

▪ We will jumpstart their car if the battery is flat

▪ We will change their flat tyre and if they don’t have a spare tyre, we will provide one at an

extra cost

▪ If clients run out of fuel, we will deliver 10 litres of fuel to them.

This service is limited to two incidents per vehicle each year. A reimbursement of up to

R1 000 if the client uses their own service provider, subject to proof of invoice

Emergency roadside assistance outside of South Africa Our emergency roadside assistance benefits have been enhanced and are now provided to

Discovery Insure clients at no extra cost, while they are travelling in the following countries:

▪ Namibia

▪ Botswana

▪ Swaziland

▪ Lesotho

▪ Mozambique

We will also assist clients whose cars are not drivable following an accident in these countries

with the repatriation of their cars to South Africa. Repatriation is limited to the amounts shown in

the Benefit Limit Annexure and the limits differ for each plan type as follows:

▪ Up to R5 000 on the Essential Plan

▪ Up to R10 000 on the Classic Plan

▪ Up to R20 000 on the Purple Plan

What to do in an emergency If clients need emergency roadside assistance they can call one of the following numbers:




of 249

Confidential

▪ 0860 999 911 (for assistance inside the borders of South Africa)

▪ 010 205 3065 (for assistance outside the borders of South Africa).

Direction Assist ▪ Direction Assist gives accurate directions to a planholder when they are travelling within

the borders of South Africa which can be given telephonically, faxed or emailed to a

specific email address.

Trip Monitor ▪ Trip Monitor includes a 24-hour helpline that facilitates safe travel by keeping

regular contact with the driver, throughout their journey to ensure safe arrival at

their desired destination.

HomeAssist HomeAssist provides clients with the following benefits in the event of emergencies in the home:

▪ Emergency electricity and plumbing services.

▪ Locksmith services, excluding the unlocking of padlocks.

Cover is limited to three incidents for each household each year, including outbuildings, up to

the maximum shown in the Benefit Limit Annexure and Plan Guide.

The call-out fee, plus one hour of labour is covered, excluding parts.

This feature is included at no extra cost on all Discovery Insure Plans.

HomeProtector

HomeProtector gives clients the following protection and security benefits:

▪ Emergency home security (security guards) for up to the duration of time shown in the

Benefit Limit Annexure.

▪ Accommodation up to the amount shown in the Benefit Limit Annexure.

This feature is included at no extra cost on all Discovery Insure plans.

FastTrack claims

Discovery Insure will replace and deliver all FastTrack approved items, with the same or similar

items, within 24 hours in Gauteng and 48 hours countrywide. Items covered by the FastTrack




of 249

Confidential

claims service need to be specified under the client’s portable possessions cover. These items

include tablets, e-readers, laptops, GPS devices, cameras, smartphones and MP3 players.

Discovery Insure will even go a step further and waive the excess on the claim if we fail to deliver

on our promise of quick and speedy delivery. If we are not able to replace the item, we will pay

the client an equivalent cash reimbursement. If proof of ownership has been saved on the

“Online Vault” the basic excess will be waived. If these items are stolen from a vehicle without

visible signs of forced entry, can be covered here.

If the item cannot be replaced the client will be reimbursed in cash.

▪ Large metropolitan areas include Johannesburg, Pretoria, Cape Town and Durban.

▪ The 24-hour/48-hour period starts when the claim is approved.

▪ FastTrack items include any specified electronic equipment e.g. laptops, cameras, tablets

and GPS devices.

Smartphone app

SmartService provides clients with a seamless and convenient process, providing

the following services: The Discovery Insure smartphone app:

▪ Is available for iPhone and Android users.

▪ Stores client’s personal information including their emergency contact

details.

▪ Has an emergency button that clients can push for immediate assistance

even when the client is not logged into the app.

▪ Is reliant on there being cellular network reception available at the client’s

location.

▪ Can be used by clients to capture the scene of the accident and send

through the following:

o Pictures of the damage to their own vehicle,

o Pictures of the damage to third parties’ vehicles,

o Details of third party drivers,

o Details of any witnesses, and

ClaimsView ClaimsView will allow all Discovery Insure clients and their financial advisers to view their

claims progress online. ClaimsView will provide greater transparency and accountability to

all parties involved in the claims process, ultimately leading to a better, more efficient client

experience.




of 249

Confidential

o Pictures of the accident scene.

▪ Can be used by clients to lodge a claim with Discovery Insure

▪ Uses the same username and password as client would use when logging into

www.discovery.co.za

SmartClaims

When clients are involved in a car accident they need to contact Discovery Insure. They can

• Call the call centre on 0860 751 751 or

• Submit their claim through the Discovery Insure function on Discovery’s smartphone app

available on iPhone or Android.

The services and benefits provided through SmartClaims include

Assistance in a medical emergency

▪ All clients with a telematics device fitted to their vehicles have the benefit of ImpactAlert.

▪ Once notified, Discovery Insure will assist in dispatching emergency medical assistance to

the scene of the accident, depending on the severity of the accident.

▪ Discovery Insure will manage the accident scene for clients that are unable to assist in this

regard.

Auto claims

Clients can submit their claims, on specific items (see list below), online or through their

smartphone to Discovery’s automated claims agent to have their valid claims approved within

minutes.

▪ Geyser, vehicle glass, cellphone and electronic equipment claims

▪ Television: Accidental damage, Lightning, Power surge

▪ Laptop: Accidental damage

▪ Tablet: Accidental damage, Theft, Loss

▪ Smart watch: Accidental damage, Theft

Process:

▪ Submit claim through the Discovery app

▪ Discovery’s claim algorithms determine whether the claim can be authorised instantly or

not

▪ If authorised instantly: the claim is auto-approved for replacement or repair





of 249

Confidential

▪ OR

▪ If not authorised instantly: the claim is redirected to a claims agent for further

investigation

▪ 70% of cellphone claims will be auto-approved

Legal support benefit:

Many individuals do not have access to or are unable to afford in-house legal advisors even though they have a real need for it. Discovery has partnered with Origin Systems to offer clients easy and affordable online or telephonic access to an array of top quality legal support services.

Some of the legal support clients will have access to includes

▪ Personal lawyers on call (for assistance on legal issues like divorce, maintenance, custody,

criminal matters, claims for payment, breach of contract, property disputes and more)

▪ Legal contracts (last will and testament, domestic employment agreement, sale of motor

vehicle, residential lease, acknowledgement of debt, general power of attorney)

▪ Written legal advice packages (small claims court, debt relief, getting an uncontested

divorce, maintenance claiming, stopping domestic violence, ANC and marriage options,

reporting a deceased estate, registration of child’s birth)

▪ Free 30-minute face-to-face legal consultations with panel attorneys

Clients can choose between two options

1. The Embedded benefit that is automatically included in their plan at no extra cost.

2. Upgrade to the Premium benefit at an extra R20 per month.

▪ They can upgrade at any time




of 249

Confidential

▪ They must upgrade for a period of at least 12 months of cover

▪ They can benefit from additional services such as:

▪ Debt recoveries

▪ Drafting letters of demand

▪ Access to emergency legal and bail assistance

▪ Access to theft and fraud-prevention services.

▪ Access to more legal contracts (including antenuptial contract, loan

agreement, independent contractor agreement, B&B indemnity, commercial

lease, sale of property, deed of suretyship, trust deed, general employment

agreement).

Insure quote analysis (IQA)

When providing a quote to clients they may, at times, not be happy with the premium. In the

event that this happens Discovery Insure can have a closer look at the quote and potentially offer

the client a better premium. This is not available for every single quote generated. Only in special

circumstances should a quote be sent to IQA. When a quote is sent to IQA the following must be

met as minimum requirements:

1. A minimum Discovery Insure policy difference of R300;

2. The policy must cover both motor and household contents and/or building;

3. A copy of the client’s existing policy schedule and Discovery Insure policy schedule must

be attached to the email; and

4. The client’s existing policy must have been in force for at least 1 year.

SmartAdvice

The purpose of SmartAdvice is:

• Ensures the quote process is smooth.

• Ensures accurate client information.

• Used to explain cover details to clients using correct wording.

• Ensures clients are comparing like-for-like benefits between policies.




of 249

Confidential

!

Integration


Integration

▪ Select clients

▪ Discovery Life Integration

▪ Discovery Gap Cover and Discovery Supplementary Gap Cover integration

▪ Driving well to reduce premiums

▪ Retaining the discount

▪ Plan integration: Notional Vitality Drive status

Integration




of 249

Confidential

Select clients

Discovery Insure clients can save up to 25% on their premiums by having other Discovery

products.

Select rates with Insure

Insure clients who are Vitality Health and Discovery Bank members earn a minimum of a 5%

discount on their rates. Also, they can earn up to 25% off their rates, based on their risk and

wellness choices.

▪ Discovery Insure applies a behavioural algorithm to assess the client’s overall risk profile

based on multiple variables, including wellness choices, credit and retail risk profile, risk

attitudes and benefit choices.

▪ Depending on the results of the algorithm, select clients can get as much as 25% off their

Discovery Insure premiums.

These clients can also qualify for select rates if they have a Discovery Classic Life Plan with life

cover of at least R3 million instead of a Discovery Bank account.

Earn more points with Vitality Health

Insure clients who are also Vitality members earn 500 Vitality Health points per month for driving

well.

Supplementary Gap Cover

Insure clients can earn an annual payback of up to 25%of their total premiums by also having

Supplementary Gap Cover and being Vitality Health members. The percentage is based on the

client’s Vitality Health and Vitality Drive status.

Discovery Bank

Discovery Bank clients can get up to 20% back in Discovery Miles on their qualifying fuel and Uber

spend.

Note: If the client has Vitality Drive through Discovery Insure, this is in addition to the up to 50%

cash back on fuel and the up to 25% upfront Uber discount they already enjoy.

A client qualifies for Select rates if they meet the requirements in the month before their

quote. Select rates are also applied at plan anniversary.




of 249

Confidential

Summary of Integration

128

Product Integration

Vitality Health points

Earn points per month for driving well

Earn annual payback of up

to total premiums

ased on Vitality Health and Vitality Drive status

upplementary Gap over

elect rates

Minimum discount

Up to discount, basedon risk and wellness choices

Fuel ber

Discovery ank clients can get

up to back in Discovery

Miles on their qualifying fuel and Uber spend.

Gap Cover

ank Insure

Note: ou can also qualify for select rates if you have a Discovery Classic Life Plan with life cover of at least R3 million instead of a ank account

Note: If the client has Vitality Drive through Discovery Insure, this is in addition to the up to 50% cash back on fuel and the up to 25% upfront Uber discount they already enjoy .




of 249

Confidential

Quoting and tools

Quoting and tools




of 249

Confidential

Quoting and Tools

SmartAdvice

FAZ

What is FAZ? FAZ is a section on the Discovery website www.discovery.co.za developed specifically for

Discovery accredited financial advisers. We have created this section for financial advisers and

sales teams to use when selling Discovery products.

How to use FAZ to provide excellent service to Discovery Insure clients You will find many useful tools and handy information about Discovery Insure within FAZ. All the

marketing material you need is available here, under the Discovery Insure section of Marketing

Support, and you can easily download it for printing or email.

Visit www.discovery.co.za and log in to FAZ with your username and password.

Once logged in, you will be able to:

View

Client details

▪ Plan summary

▪ Plan schedule

▪ Existing and historical quotes for active clients

▪ Bank details

▪ Claims and their progress

▪ Driver scorecard

▪ Points monitor

Important documents

▪ Plan guide

SmartAdvice was created to be a one-stop platform for our community of users to facilitate

seamless integration of financial advice with the new business submission process.

SmartAdvice is simple and intuitive to use, and assists the user by attempting to predict the

best advice in a given scenario. While the suggested solutions can easily be changed to reflect

the financial adviser’s recommendations where required, these suggestions can save the

user time in straightforward situations.

This has already been discussed and applied practically in the previous modules.




of 249

Confidential

▪ Benefit limit annexure

▪ Excess annexure

Financial adviser details

Update: Non-material changes (changes that don’t affect the premium)

▪ ou can automatically update any plan details that don’t affect your client’s premium.

Add, delete or amend Plan cover (changes that affect the premium)

▪ Add additional cover

▪ Delete/remove items off cover

▪ Amend cover

Initiate a claim

▪ You can begin the claims process on behalf of your client.

Using the Financial Adviser Zone to self-service the client

The guide “Servicing your clients” explains how you can use the Financial Adviser Zone (FAZ) on

www.discovery.co.za to service your Discovery Insure clients’ plans yourself.

The servicing section on FAZ cannot be used to service clients who are being quoted or whose

plans have not been activated yet nor does this functionality apply to clients where the financial

adviser receives a referral fee through a referral agreement or uses Discovery Insure

Personalised Sales (DIPS).

Ai Quote Introducing world-leading technology that allows you to quote in seconds.

AI Quote allows you to automatically generate Discovery Insure quotes on your mobile device, in

seconds. Just take pictures or upload a digital copy of a client's existing competitor plan schedule,

and an equivalent Discovery Insure quote will be automatically generated. In addition, we will

also generate an ideal Discovery Insure quote that includes our suggested unique, additional

benefits to personalise the quote for your clients.

The FAZ guide is loaded on your e-reader for your perusal.




of 249

Confidential

1. Capture/upload documents Use the Discovery app or FAZ to either snap a picture or upload an electronic copy of your client's

existing competitor plan schedule.

2. Review extracted values All relevant details are captured and you must confirm the details that were extracted by the

system and fill in any missing values (if necessary).

3. Review and generate quotes AI Quote instantly creates a comparable Discovery Insure quote, as well as an additional ideal

Discovery Insure quote with our unique benefits and features. all generated quotes are saved on

FAZ for you to amend and activate instantly.

Get quotes against these competitor insurers

▪ Santam

▪ OUTsurance

▪ King Price

▪ MiWay

▪ Auto and General

Sections of cover that can be captured

▪ Motor

▪ Household contents

▪ Buildings

▪ Portable possessions

Terms and conditions

You need to review the captured details to ensure that they are correct as you are still

responsible for advice given to your client.

Other tools for you to use 1) Discovery Insure Asset Inventory tool

2) Discovery Insure Building Estimate

3) Discovery Insure Commissions Calculator

4) Discovery Insure Vitality Drive Rewards Estimate

5) Vitality Drive dashboard

The Asset inventory tool This tool is to help you determine the correct combined value of your client’s household contents

by considering each room individually. By insuring the household contents correctly, you will

avoid average* being applied when you claim.




of 249

Confidential

Note that this tool should only be used as a guide and does not remove your responsibility to

make sure that your client’s contents are insured for its total replacement value.

How to use this tool:

The value you assign to each item is the replacement value. This means if your client bought a

couch for R5 000 ten years ago and it can only be replaced by purchasing a new coach now for

R10 000, then the replacement value is R10 000 and not R5 000.

Any items specified under the portable possessions section of cover do not need to be included

in the household contents section of cover, as they are already insured in full.

* Average applies when you are underinsured. If you only insure your household contents

for R500 000 when in fact their correct value is R1 000 000, you will only have 50%

(R500 000/R1 000 000) of every claim paid.

This tool is an Excel spreadsheet and is loaded on your e-reader for easy access.

The Building Estimate tool This calculation provides you with a way to estimate your client’s building replacement costs. The

building sum insured on your client’s short-term insurance plan should be sufficient to meet

these replacement costs.

If your client’s building sum insured is not sufficient, average will apply at claims stage. This tool

should only be used as a guide and does not remove your responsibility to make sure that the

building is insured for its total replacement value.


Vitality Drive Rewards Estimate This calculation provides you with a way to estimate your client’s Vitality Drive rewards i.e. the

fuel cashback that the client might receive as well as how much could go into the Insure Funder

Account.

The data input would be the following:




of 249

Confidential

▪ Which Telematics device option was selected

▪ The possible Driver performance score

▪ Knowledge and awareness

▪ Vehicle safety

▪ General information

▪ Fuel spend

▪ Young Adult Benefit after 6-month cycle

The Commissions Tool This calculation provides you with a way to estimate your commission. The data input for the

calculation is as follows:

▪ The average monthly motor premium

▪ The average monthly non-motor premium

▪ Policies per month

▪ Annual premium increase (6%)

▪ Annual policy lapse rate (5%)

▪ Projection period (5 years)

The commission on motor premiums is 12.5% and on non-motor premiums is 20% per month.

The Vitality Drive dashboard

This tool allows you to view the following:

▪ How many points you or your client has earned;

▪ How the points have been distributed as well as the total cashback;

▪ The Driving behaviour with a breakdown of where points were lost; and

▪ Trip information and personal goals.

▪ Knowledge and awareness: Online courses and driving academy






of 249

Confidential

Commissions

Commission




of 249

Confidential

Commission

Overview

An as-and-when commission model is utilised for insurance risk benefits

▪ An as-and-when commission model denotes that commission is calculated and payable to

the intermediary on the billing of any premium to the insured.

▪ A flat rate per benefit is applied to the monthly premium or pro-rated premium portion to

calculate the intermediary’s commission.

▪ Pro-rated premiums are billed to the insured with the next monthly premium billing

except in the case of a pro-rated premium at inception of a policy, where the premium is

billed immediately.

▪ Monthly premiums are billed in advance.

An upfront commission model will be utilised for the sale of a Vitality Drive benefit.

▪ An upfront commission model denotes that commission is calculated and payable to the

intermediary on activation of the policy.

▪ A flat rate is applied to the first year’s annualised premium income to calculate the

financial adviser commission. No commission is payable on renewal or annual premium

increases.

Commission for Insurance Risk Benefits

▪ Commission is calculated at benefit level per monthly premium or pro-rated premium

where the benefit’s cover incepted during a calendar month.

▪ The commission rates utilised for the commission calculation are dependent on the type

of benefit.

How is the commission paid?

▪ Commission is calculated by the policy premium; the following percentages are used to

calculate commission.

Commission ▪ Overview

▪ Percentages paid

▪ When it is paid

▪ Commission received

▪ Financial adviser report

▪ List of Insure policies

▪ Insure queries




of 249

Confidential

▪ Agent commission is paid at 100% for first year commission and at 80% for the second

year commission – this is dependent on the split on policy i.e.: if a policy is split 50/50 with

another agent, then the second years’ commission will be paid at 80% of the 50/50 split.

▪ By default, Insure commission is paid on a monthly basis; however an agent can opt to

have his Insure remuneration upfront for the first year of the policy, the agent may switch

between upfront and as and when twice a year only.

What percentages are paid?

Benefit Rate

Motor 12.5%

Non-motor 20%

Motor SASRIA 12%

Non-motor SASRIA 13%

When is the commission paid?

▪ Insure commission is payable on the 26th of each month and is paid with all other

commissions i.e.: Health/Life and will appear on the payslip as one payment.

How to identify that Insure commission was received?

▪ FAZ or www.discovery.co.za the financial adviser reports display “Insure Commission”

description with the amount.

▪ The breakdown of this commission is sent individually to each financial adviser providing a

breakdown on policy level.

▪ In addition to this there is also a monthly report which is sent out individually to each Agent,

the report displays the breakdown of commission paid per policy per client;

Where to get a list of all Insure policies?

▪ This can also be found on the Financial Advisor Zone (Discovery World) using the following

path;

> > Service your clients

> > > Find your clients

> > > > Insure Policyholders

▪ You have an option to request a Servicing or commissionable book for Insure and Vitality

Drive clients

Insure Queries & which departments deal with each query

▪ Insure Commissions Queries [email protected]

▪ Query with regards to commission paid/not paid etc.

▪ Insure Queries [email protected]

▪ Policy queries.

▪ Broker appointments.







of 249

Confidential

▪ Transfer of Insure business.

Binder agreements

▪ Can hold cover for 72 hours

▪ Premium discounts (excluding Vitality Drive and SASRIA) – limits determined per individual

▪ Functionality and responsibility to administer their own Discovery Insure clients

▪ Binder agreements subject to business volumes and underwriting results

▪ Services will be remunerated with an additional 3% of commission earned

Claims




of 249

Confidential

General claims

▪ Why claims are not paid

▪ Conditions that influence the outcome of the claim

▪ General claims

▪ How to log a claim

▪ Events not covered

Claims

Why claims are not paid

Nobody wants to be in a situation where their claim is not paid due to something that could

have been avoided. It is useful to have accurate expectations of what cover is available to

avoid disappointment. The rules of insurance are relatively simple; however, if a client is

unaware of these rules and does not comply, they may find themselves in this very position.

Why is a claim not paid? To put it simply, because there is no cover. This could be

due to various reasons:

1 This type of cover is not available;

2 The asset was not insured;

3 The policy terms and conditions have been breached; or

4 Events not covered.

The type of cover is not available

The terms and conditions of the policy may exclude a claim, such as, damage from

a meteorite which would not necessarily be included in a perils policy. A perils

policy specifically lists the perils that are covered. A broader form of cover is all-

risks cover, which covers all eventualities except those that are listed as exclusions.

Consequential loss may not always be covered, such as in the following example:

Ben runs a Bed & Breakfast in his residential home. There is a fire in his home and it

burns down. The insurance policy would pay for the loss or damage to his house, as

well as allow an amount for rent for alternative accommodation for him while his

house is being rebuilt. His loss of income from the B&B will not be covered. Because of

this, he may not be able to afford his bond repayments. Such cover is usually available

commercially




of 249

Confidential

Peter lives in Cape Town, close to the Koeberg power plant which has a radioactive

incident which affects his property. Peter’s house is declared a danger zone and he

cannot continue to live there. Nuclear contamination is an exclusion and is therefore not

covered, however he will still need to meet his bond commitments even though his

house in uninhabitable.

The asset was not insured

Julie only insured her jewellery while it was at home and did not choose to cover it outside

of her home. If it is lost or stolen at the supermarket she would not be able to claim. This

illustrates the need to understand the terms and conditions of an insurance policy, to

insure that the correct cover is in place.

A person might attempt to claim for their caravan, after an incident where it is damaged,

but the insurer will not pay the claim because it was not added to the policy.

The policy terms and conditions have been breached

An example of this would be, using a vehicle outside the territorial limits of the

policy or not informing the insurer about a change of risk. For instance, Fred,

who lives in Mooi River and insures his car there and is paying the premium based

on the risk in Mooi River which is relatively low. He then moves to Johannesburg and

does not inform the insurer of this. The risk of hijacking, theft and accident in

Johannesburg is much higher, making the overall risk much higher. By not telling

the insurer of the change and not paying the correct premium for the new risk, he

stands to have the claim rejected or have only a portion being paid.

▪ Insurance companies require proof of ownership for valuables. Should this not be

available at claim stage, the claim may not be settled in full.

o It is important to be aware of the reasons why claims will not be paid. The best

way to ensure this is to read the policy terms and condition, benefit limit

annexure and policy schedule together.




of 249

Confidential

Events not covered ▪ Losses covered by legislation

▪ Claims covered by SASRIA

▪ Nuclear events and substances

▪ Contractual liability

▪ Consequential loss

▪ Confiscation or similar acts

▪ Financial loss

▪ General events and causes

Conditions that influence the outcome of the claim

Timeframe to lodge a claim

Insurers will only allow a client to lodge a claim within a specified time after the date of loss.

This varies between a maximum 30 and 60 days between insurers. The timeframe allowed to

lodge a claim is at the discretion of the insurer.

Claim procedures

If a client fails to comply with the claim procedures of the insurer, the insurer may cancel the

policy and claim back any payments already made to the client for that specific claim.

Interest on damages

The insurer will not pay for any interest for insured items that have been damaged or need to

be replaced for any reason other than by instruction from a South African court of law.

Conditions of liability

A client will not be covered for liability if he/she:

▪ Does not comply with the claims procedures set out in the policy wording.

▪ Does not follow and maintain all conditions of the policy.

▪ Does not provide evidence documents, quantifiable proof or the lawful right to claim.

▪ Does not install the minimum security requirements to guard against risk as stipulated.

Dispute resolution

If a client is not happy about the outcome of a claim they may dispute this. The client must

inform the insurer first as the insurer will have a dispute resolution process in place. If a client is

still not happy after the outcome of the dispute, they may lodge a complaint with the Ombudsman

for Short-term Insurance.




of 249

Confidential

Information that Discovery Insure will need

Discovery Insure needs the following to process a client’s claim:

▪ The client’s plan number

▪ Police case number, where applicable

▪ A detailed list of all items, lost, stolen or damaged.

The client must send this information in reasonable time so that the claim can be finalised. The

client must immediately send any other documentation that he may receive in connection with

the event.

General claims

In an emergency, please contact Discovery 911 on 0860 999 911 for immediate

assistance. Please contact your financial adviser or our call centre on 0860 751 751 to

notify us of a claim.

▪ Discovery Insure SmartClaims provides a convenient and hassle-free claims solution to

clients in the event of a claim.

▪ To facilitate a smooth claims experience, it is important for the clients to always phone

Discovery Insure first, if possible, on 0860 751 751.

▪ If the client had a motor vehicle accident they can also use their Smartphone app

(available for Android, Blackberry and iPhones) to get their claim started.

▪ As soon as Discovery Insure is aware of a client’s claim they will assign a dedicated claims

consultant who will handle their claim from start to finish. Throughout their claims

process, including vehicle assessment and claim authorisation, Discovery Insure will keep

clients and financial advisers informed. Discovery Insure will guide clients through the

requirements of each step of the claims process explaining how the repair and Avis car

hire processes work.

▪ Clients can have NetAssess assess minor damages on their car at one of the Discovery

Insure Drive Centres (applicable to damages on a registered claim).

▪ Discovery Insure also offers FastTrack claims, which applies to claims for selected

specified electronic portable possessions, such as claims for cellphones, tablets or

laptops.

FastTrack claims need to be approved and FastTrack will not apply if the item is part of a

larger claim, for example a household contents claim.




of 249

Confidential

The client’s responsibilities when making a claim

The following conditions are extremely important to the claims process and are the

client’s responsibility. If they do not meet these conditions, it may influence the

outcome of the claim.

▪ The client must advise us within 72 hours, if possible, but not later than 30 days of the

loss or damage taking place.

▪ The client must provide Discovery Insure with true and complete information about the

event for which the client is claiming.

▪ The client must report a theft, burglary, hijacking or any crime related incident to the

police immediately if possible to do so, but no later than 24 hours after the incident.

▪ The client must provide Discovery Insure with any proof, information, affidavits and co-

operation we may need.

▪ The client must let Discovery Insure know of any other insurance policy which covers the

same insured event. If the same event is covered by another policy, we will only be

responsible for our share of the loss.

▪ The client must tell Discovery Insure immediately if the client becomes aware of any

possible prosecution, legal proceedings or claims against the client.

▪ The client must tell Discovery Insure immediately of any information in connection with

the event, even after the claim has been notified to Discovery Insure or even finalised.

▪ The client may not instruct their own attorney, admit liability, make any statements,

offers, promises or payment to or negotiate or settle their claim, under any

circumstances.

▪ The client must get Discovery Insure’s written approval before repairing, replacing or

disposing of any damaged or destroyed item for which the client has submitted or

intends submitting a claim.

▪ The client will be responsible for all excesses for every event that leads to a valid claim.

▪ The client must assist Discovery Insure in any recovery action against any third party

responsible for the loss or damage. Discovery Insure will pay the client for any extra

reasonable expenses the client incurs in helping Discovery Insure.

Extra information needed for vehicle claims ▪ The location of the vehicle

▪ A copy of the driver’s licence

▪ Names, addresses, ID numbers and licence details of other drivers involved in the

accident

▪ Details of the owners of the vehicles or the property involved (including their addresses,

contact details and insurance policies covering the vehicles or property)

▪ Makes and registration numbers of all the vehicles involved

▪ Injuries to any passengers in any of the vehicles and any other injuries caused directly by

the event




of 249

Confidential

▪ Registration - or deregistration papers in event of a total loss (stolen or write-off).

Towing and storage process

▪ The client’s vehicle must be towed by a Discovery Insure approved provider that has been

sent or authorised by the call centre.

▪ The client must contact the call centre on 0860 999 911 to arrange towing of the vehicle.

▪ Do not allow any unapproved towing to take place. If the client does not call the call

centre Discovery Insure will only pay up to the amount shown in the Benefit Limit

Annexure and the client will be responsible for any balance of the towing and storage

cost.

Please remember to get a list of the items inside the vehicle from the towing company

when the vehicle is towed. This list should include items that can be easily taken such as

radios, alloy wheels, tools and spare wheel.

Towing procedure after repatriation Once the vehicle has been repatriated to within the borders of South Africa, the client will be told

what to do next.

Windscreen and window glass It is important that the client use a Discovery Insure approved service provider to carry out

windscreen and window glass repairs or replacement. The client must contact our call centre

directly on 0860 751 751 and follow our instructions and get authorisation to have this repaired

or replaced.

Notifying the police ▪ The client must report a theft, burglary, hijacking or any crime related incident

immediately if possible to do so, but no later than 24 hours after the incident.

▪ The client must report an accident where a third party is involved or injuries have been

sustained, as soon as possible, but no later than 24 hours after the incident.

The client must get a copy of the police report, a copy of the statement to the police (if

any) and details of the police station and police case number. We will need these to

process the claim.

Claims preparation costs Discovery Insure will pay the client back for expenses the client incurs to get any information or

documents that we may need to process the claim. The maximum amount that we will pay the

client is limited to the amount shown in the Benefit Limit Annexure.




of 249

Confidential

Settlement of the claim Discovery Insure will settle all valid claims as quickly as possible. Discovery Insure must

investigate the validity of all claims and delays in approving claims may occur. The benefits will be

limited to the amount and settlement basis shown in the Plan Schedule and the Benefit Limit

Annexure, less the excess amount. The excess amount will be the total of the basic excess and

any additional excess amounts that apply to the specific claim, as shown in the Plan Schedule and

Excess Annexure.

Discovery Insure can settle the claim in any of the following ways:

▪ Repair the item/s

▪ Replace the item/s

▪ Cash payment

▪ Or a combination of the above at Discovery Insure service providers of our choice.

Legal proceedings in the client’s name Discovery Insure can act on the rights and obligations against any other party to recover costs or

defend any claim against the client, when the client submits a claim which we have accepted.

Discovery Insure functions on the Discovery Smartphone apps

Emergency response The Discovery Insure function on the Discovery app will let the client receive emergency

assistance by pushing the panic button on the app. If the service is unavailable, please call

Discovery 911 on 0860 999 911.

SmartClaims The Discovery Insure function on the Discovery app will allow the client to start a non-emergency

claim. If the client has not heard from us within two working days of using the app, please call

0860 751 751. Discovery Insure does not accept liability if the notification is not received.

Proof of ownership The client needs to give Discovery Insure proof of ownership and value for any item for which the

client is claiming.

If the client cannot provide a valuation certificate or acceptable proof of ownership and value, the

client will be limited to the amount shown in the Benefit Limit Annexure.




of 249

Confidential

Online Vault

The client may store all the documents, such as valuation certificates, acceptable proof of

ownership and value, as well as important personal documents in the secure online vault.

The client must keep the original documents, as these may be required at claims stage.

If the client personally, or the financial adviser, has stored all the documents relating to the items

of the Portable Possessions claim, the basic excess as shown in the Excess Annexure may be

waived.

This excess will not be waived for documents added after the incident date.

Basic excess refers to the portable possessions basic excess as stated in the Excess Annexure. It

excludes the Pedal cycle excess, any voluntary excess or any additional excess as stated on the

Plan Schedule.

How to log a claim

The client can log a claim in different ways

The client can call. For emergencies, call 0860 999 911, or 0860 751 751.

Client submits through the Discovery Insure smartphone app. This applies to motor accident claims only.

Claim is logged on the Discovery website by the financial adviser or client.

Immediate assistance is provided if required, e.g. ▪ Towing ▪ Car hire ▪ Security guards ▪ Despatcher of emergency car recovery

team ▪ Despatch of emergency assistance, incl.

medical assistance if needed.

A Discovery Insure claims consultant is

allocated to the claim and will be the

contact person for the financial adviser and

client until the claim has been fully

processed.




of 249

Confidential

Payments

Payments




of 249

Confidential

Payments ▪ Annual, automatic increase of sum insured

▪ Endorsements

▪ Cover start date

▪ Premium payments

▪ Changes to the policy

▪ Consent

Payments

What can the client insure on the Discovery Insure Plan? The client can insure motor vehicles and household assets like buildings, furniture, appliances,

clothing and electronic devices that belong to the client, the people who live with the client or the

people who are financially dependent on the client. The client must have an insurable interest in

the assets the client covers on the plan. This means that if the assets on the plan are lost, stolen

or damaged the client will suffer a financial loss. The assets that the client insures under this plan

must be permanently located in South Africa.

When does the cover start? If the client has paid the premium and the client has given Discovery Insure all the information

they need from the client, the cover will start on the date shown on the Plan Schedule. Discovery

Insure may choose to void or cancel the cover if the client misleads them, does not pay the

premium or fails to give them the information needed.

To which period do the client premiums relate? The premiums are collected in advance and are used for the cover for the following month. The

client will be billed for any premiums due between the date the plan starts and the next premium

due date, at the start of the cover. Clients can also pay their premium via EFT.

How long will the plan be valid for? Provided that Discovery Insure receives the premium, the plan remains in force and will be

automatically renewed from month to month. The client may cancel the plan at any time. If clients select the option of paying via EFT, they must ensure that their payment reflects in

Discovery’s account on their chosen premium payment date. Discovery Insure will allow up to 48

hours after the premium payment date for the payment to reflect. If the payment does not reflect

after 48 hours, clients will be given a grace period of 15 days, as per the standard rules stated in

the Plan Guide. If after 15 days, the payment is still outstanding, the policy will go into Gap in

cover.

PAYMENTS




of 249

Confidential

What if I make changes to the client’s cover? The client can make changes to the Plan at any time. The client will be given a replacement Plan

Schedule when the client makes changes to the Plan, which will show the date when the changes

the client have made will take effect. Check the new Plan Schedule carefully to make sure that the

assets the client insured and the benefits the client selected are correctly recorded on it.

Discovery Insure will use the version of the Plan Schedule in effect at the time of the loss to

determine the benefits when the client claims.

What if the client cancels the Plan? The client may cancel the Plan at any time. The client will not be covered after the date of

cancellation. The client will forfeit any rewards that may have been earned but not paid during

the period before cancellation. Discovery Insure will collect any outstanding premiums that may

be due before they cancel the plan.

Debit order dates

▪ DOC = Date of Commencement

▪ Short-term insurance will deduct a premium at the beginning of the

month for the month (need money upfront for cover)

Scenario 1: DOC: 20 December

▪ Payment day: 1st

▪ Within 48 hours the pro rata amount for December will be collected.

▪ On the 1st of every month the premium for the following month will be collected.

Scenario 2:

▪ DOC: 1 February

▪ Payment day: 25th

20 December Pro Rata

48 hours

31st of every

month

1st

of

mo

nth

1st of every month En

d o

f m

on

th




of 249

Confidential

▪ Within 48 hours after 1 February, the pro rata amount for February until 24 February

will be collected.

▪ On the 25th of every month the premium for the following month will be collected.

Scenario 3: Adding a vehicle to existing policy

▪ Add item: 16 February

▪ Payment day: 1st

▪ Client will be billed immediately for servicing change pro rata from 16th February to

1st March

▪ New premium including added vehicle will be debited on 1st March

Gap in cover The purpose of the Gap in cover is to give clients an opportunity to pay their monthly premium if

their premium collection debit order rejects.

1 February Pro Rata 48 hours

1st

of

mo

nth

End

of

mo

nth

25th of the month Cover payment

from 25th to 24th of the month

Addition 16th

Pro-rata premium

16th to 31st

1st of next month

1st

of

mo

nth

End

of

mo

nth

Payment date

1st Cover until 31st




of 249

Confidential

Policies will auto-lapse after three consecutive non-payments of premiums as opposed to one

non-payment of premium as it previously was, benefitting both you and your clients. A plan that

is in a Gap in cover is still active, however, the client will not be covered in the event of a claim.

Vitality Drive rewards will be suspended during the Gap in cover period.




of 249

Confidential

How it works Here is an example of how Gap in cover works:

The benefits of gap in cover for financial advisors ▪ Auto-lapse after 3 consecutive non-payments

▪ More opportunity for client to pay their premiums

▪ Allows you to service the policy in the Gap in cover period

▪ Allows you to force debit orders at any time

▪ Reduces admin for you as you won’t need to re-issue policies after 15 days

Terms and conditions ▪ Clients will not have cover during their Gap in cover.




of 249

Confidential

▪ Clients cannot back date their cover during the Gap in cover period.

▪ A pro-rata amount will be charged for the period from the forced debit order collection date

selected until the day before the next premium payment date.

▪ The anniversary process will continue as per normal, even if the policy is in the Gap in cover

period.

How does this affect the client's Vitality Drive rewards? All Vitality Drive benefits and rewards will be suspended during the Gap in cover period.

Only once premiums have been collected, the client will receive their accumulated fuel cash back

and all other rewards will resume.

If a client is linked to more than one Discovery Insure Plan, the following rewards will NOT be

suspended due to Gap in cover unless all their plans are in a Gap in cover.

▪ Active Rewards

▪ Car seat discount

▪ Uber discount

If a policy is in Gap in cover, clients will still have access to our safety features and emergency

assistance, but at the client’s own expense.

The financial adviser zone ( FAZ ) You will be able to view when the policy is in Gap in cover in the ‘Credit control status’ column of

the Discovery Insure servicing book list page.

You will have the functionality to create servicing quotes while a policy is in Gap in cover.

You are able to request a forced debit order when viewing a policy which is currently in Gap in

cover. You can force debit orders at any time during the Gap in cover period.

Credit control rules

▪ Grace period is 15 days for non-payment, except for the very 1st premium - if the first

premium fails the policy auto lapses.

▪ Changes to bank account details must be done at least 3 days before the next debit is

due to go off.

▪ Discovery Insure has a zero-day rule i.e. if the pro rata amount is debited on one day

and the actual debit order date is the next day, Discovery Insure will take two

separate debit orders. A pro-rata amount is billed for any servicing changes or

additions immediately (if a different bank is used, may take up to 48 hours for the

debit order to be processed).

▪ Billing does not run over weekends and public holidays

• If payment date falls on a Saturday, we will bill on the Saturday or the

Monday depending on their chosen bank

• If payment date falls on a Sunday, we will bill on the Monday

• If payment date falls on a public holiday, we will bill the following day




of 249

Confidential

SASRIA payment ▪ No prorating of SASRIA premium

▪ No refund or claw-back of SASRIA premium on cancellation

• If SASRIA benefit starts within a payment window, the full SASRIA premium will

always be collected

Calculating a pro rata premium for additions ▪ Pro rata premium formula = (premium – SASRIA/31) x (days remaining till payment

date – 1)

▪ Example

• DOC 16/04/2014

• payment date is the 1st and premium is R600, of which R5 is the SASRIA premium

• Pro rata premium is as follows:

• ((600-5/31) x 15) + 5

• = 287.90 +5

• = R292.90

Calculating a pro rata premium on removals

▪ When we calculate a premium decrease for the removal of an item do not look at expired

days

▪ All calculations must be based on the days that the benefit was active and subtracted

from the amount actually paid

▪ This will result in the correctly calculated credit/refund

▪ Example:

• Premium is R1 000; SASRIA premium is R2

• Payment cycle is from 21 June to 20 July

• Remove vehicle off cover on 10 July

• Therefore, benefit was active for 20 days

• Formula: Benefit premium paid – ((premium – SASRIA / 31) x (days that benefit

was active))

• Credit/refund due

• R1 000 – ((1000 – 2 / 31) x (20))

• R1 000 – R643.87

• R356.13 (Refund/credit)

Consent ▪ Sharing of claims and underwriting information by insurers is important. It helps the

insurance industry to underwrite and assess risks fairly.

▪ It benefits the client to help stop fraudulent claims and to keep premiums as low as

possible.




of 249

Confidential

▪ The consent the client gives Discovery Insure means the client allows us to check any

insurance information provided by the client or on the behalf for any insurance policy or

claim made or lodged by the client and any person covered under the Plan.

▪ This allows us to share this information with other insurance companies or their agents.

▪ The information that the client provides us will be treated as confidential.

▪ Please be aware that this information may be used and checked against other legitimate

sources or databases.

▪ The client also agrees to let Discovery Insure check the details with a registered credit

bureau of our choice for underwriting purposes




of 249

Confidential

Competitors

Competitor analysis




of 249

Confidential

Competitor Analysis

Discovery Insure competitor comparison

The purpose of the Discovery Insure competitor comparison is to help financial advisers

compare Discovery Insure with competitors’ products. The South African short-term

insurance market is highly competitive, with insurers continually changing their product

offerings to give clients more choice.

To make sure your comparison is accurate, you need to compare the most recent competitor

policy schedule and policy wording to the most recent Discovery Insure quote, schedule and Plan

Guide. The information on which the comparisons in this document are based was obtained

during 2014. This information was valid at the time of the comparison.

Discovery Insure can be compared to other insurance companies in the market place.

Here are a few examples

Discovery

Insure

Competitors

Essential Plan ▪ Outsurance

▪ MiWay

Classic Plan ▪ Santam Multiplex

▪ Mutual and Federal Allsure

▪ Alexander Forbes Priceless

▪ MiWay

Purple Plan ▪ CIB Vertex

▪ Alexander Forbes Envoy

▪ Echelon

Competitors ▪ Competitor comparison

▪ Examples of competitors




of 249

Confidential

Like-for-like comparison

When comparing a Discovery Insure quote to a competitor schedule, it is important to compare

the two on the same basis. This means making sure the following is the same on both:

▪ Value, type and number of assets

▪ Renewal premium date

▪ Cover, limits and benefits

▪ Excess structures

▪ Minimum security requirements

▪ Endorsement and warranties that apply to the client

▪ Optional benefits and product features

Discovery Insure set out four objectives to achieve with the launch of

their product

1. Structurally reduce the cost of insurance through positive behavioural change

2. Channel actuarial and risk management savings to significantly reduce the cost of fuel for

clients

3. Make the roads safer for families insured by Discovery

4. Create a nation of great drivers

The latest competitor analysis will be loaded on the e-reader for your perusal if it is

available

The competitors update their offerings on a regular basis so keep in mind that the

competitor analysis might not always be up to date. It is merely a guideline.




of 249

Confidential

Discovery’s competitive advantage

Discovery’s approach to insurance has always been characterised by unique product innovation,

client engagement and a focus on providing the highest levels of service. Discovery has always

built its business on the notion that we will only enter markets where we can bring a compelling

offer for customers as well as positive change in the marketplace.

One of the cornerstones of Discovery’s business model has been to use behavioural economics

and incentives to bring about change while still offering real value to their customers. Discovery

used its behavioural economics expertise and experience in combination with the latest motor

telematics technology to create an incentive-based short-term insurance offering Discovery

Insure.

The rationale behind the product platform was based on extensive market research as well as

behavioural insights from the Vitality and Vitality Drive programmes.

The following trends have become the foundation of the products design:

▪ Discovery’s experience and capability in behavioural change models and their relevance

in the short-term insurance market.

▪ The emergence of telematics technology as a premium rating factor in short-term

insurance.

▪ The rising and volatile fuel price negatively impacting the cost of vehicle ownership.

▪ A positive shift in driver behaviour incentivized through financial rewards.

▪ Higher accident rates among young adults.

▪ Discovery’s ability to understand and price risk more accurately enabling them to identify

“select” clients.

▪ The importance of a hassle-free convenient service offering.




of 249

Confidential

Objection Handling

The South African short-term insurance market is competitive; with insurers continually changing

their product offerings to give clients more choice. In the business your client could come across

various objections about Discovery Insure from new and existing clients. The purpose of this

section is to assist you in overcoming these objections.

Client objections you may face

▪ Discovery Insure is too expensive

▪ There is no value in insuring the client building or household contents with Discovery

Insure

▪ Vitality Drive rewards are no different to a standard no claims bonus offering

▪ Telematics device information can be used against the client

▪ The Discovery Insure Plan includes benefits that the client doesn’t need

Objection handling: Key focus areas

1. Discovery Insure is too expensive

1. Ensure that the quotes being compared were completed on a like-for-like basis

2. Explain the direct savings:

▪ Monthly fuel rewards of up to R800 per driver based on driving behaviour

for clients on Vitality Drive. A husband and wife insured on the same plan

driving their own cars could earn up to R1 600 in fuel rewards each month.

In addition, these rewards can be doubled and paid into their Insure

Funder Account

▪ Telematics device which includes nationwide vehicle tracking and recovery

is installed at a once off fee of R 150 at policy level. A tracking device costs

an estimated R100 – R200 per month. A husband and wife insured on the

same plan driving their own cars could save R200 – R400 each month

3. Explain our benefits and service offerings.

2. There is no value in insuring the client building or household contents

with DI ▪ Clients that insure their buildings or household contents for R250 000 or more and

complete and pass their Tiger Wheel & Tyre Annual MultiPoint Check qualify to get

up to 50% of their BP and Shell fuel spend back in fuel rewards.

▪ In addition, benefits and features including HomeAssist, HomeProtector, the Asset

Inventory option and Estimated Maximum Loss should also be explained.




of 249

Confidential

3. Vitality Drive rewards are no different to a standard no claims bonus

offering ▪ Vitality Drive incentivises clients to reduce their risk by becoming better drivers. The

better the clients drive, the less chance they have of being involved in an accident,

keeping them and their families safer.

▪ Also, rewards are:

o Monthly, so clients don’t need to wait

o Still paid irrespective of whether a client claims or not

o Substantial rewards of up to R800 in BP and Shell fuel rewards, potential

Telematics device savings each month as there is only a once activation fee

applicable.

4. Telematics device information can be used against the client ▪ Discovery Insure will not use information collected from the telematics device when

approving or rejecting claims other than to verify the time and place of an incident.

5. The Discovery Insure Plan includes benefits that the client doesn’t need ▪ Discovery Insure designed its benefit and service offering to provide clients with value

where they need it most. Discovery Insure provides an enhanced service offering that

adds value, with certain benefits included at no extra cost.

Steps in the Objection handling process

One: Discovery Insure is too expensive i. Make sure comparisons are like for like

ii. Estimate the true premium based on direct savings

iii. Explain our benefits and service offering

Know the client

Knowing the client will help you to explain our benefits and services in a way that is

meaningful to the client.

You should know the following about the client:

o If they have young children. This client will find our safety features and benefits

more valuable

o If they have older children who drive their own cars. This client may be interested

in the Young Adult benefit

o If they have more than two cars. This client may not need car hire if they have a

claim, so it will be important to explain the alternative benefit of receiving R100 a

day while their car is being repaired.




of 249

Confidential

Two: There is no value in insuring the client building or household contents

with DI i. Explain the impact on their fuel reward

ii. Explain DI’s unique benefits and features

iii. Additional facts to consider

a. Clients who insure their buildings or household contents together with their

car insurance may receive reduced rates on their car insurance

b. Discovery Insure buildings cover provides the necessary cover and

conditions to meet the requirements of financial institutions with which

clients have registered their bonds

c. Clients’ administrative burdens may be reduced by insuring their buildings,

household contents and cars under one plan instead of several plans.

Three: Vitality Drive rewards are no different to a standard no-claims

bonus offering. When dealing with this objection it is important to explain the purpose behind Vitality Drive,

which is to incentivise clients to reduce their risk by becoming better drivers. In addition, it

is useful explain the unique features of Vitality Drive, including estimating the expected fuel

reward payments and emphasising that the rewards are paid monthly, irrespective of

whether a client claims or not.

▪ Explain Vitality Drive

▪ Explain the unique features of Vitality Drive

Four: Telematics device information can be used against the client

▪ Confirm that telematics device information will not be used to reject or approve

claims

▪ Explain our data storage and protection principles.

▪ Explain what Discovery Insure uses the telematics device information for

Five: The Discovery Insure Plan includes benefits that the client doesn’t

need When dealing with this objection it is important to explain that our overall philosophy

towards product design is to provide an enhanced service offering that adds value, at no

extra cost. It’s also important to discuss the benefit the client is objecting to, to highlight the

value of the benefit and the reason for its inclusion in our standard offering

▪ Explain Discovery Insure’s product design philosophy

▪ Discuss the benefits included at no extra cost




of 249

Confidential

Mention that Discovery Insure provides flexible options

• Benefits such as credit shortfall and accidental damage cover

• General clothing, personal effects and specified item cover for Portable

possessions

• Asset Inventory option

• Estimated Maximum Loss option.




of 249

Confidential

Key selling features

Rewards for driving well Essential Plan Classic Plan Purple Plan

Fuel rewards Up to 25% (up to

R400 per month)

Up to 50% (up to

R800 per month)

Up to 50% (up to

R800 per month)

Insure Funder Account ✓ ✓ ✓

Active Rewards ✓ ✓ ✓

5 Star Days (Vitallity Drive

sensor only)

✓ ✓ ✓

DriveMe 25% off Road Trip

and Scooter Angels

10% off Uber

25% off Road Trip

and Scooter Angels

25% off Uber

25% off Road Trip

and Scooter

Angels

25% off Uber

Tiger Wheel & Tyre

discount

✓ ✓ ✓

Bosch Car Servicing ✓ ✓ ✓

Safety features

ImpactAlert ✓ ✓ ✓

Find my vehicles ✓ ✓ ✓

Vehicle panic button (on Vitality Drive sensor)

✓ ✓ ✓

Weather warnings ✓ ✓ ✓

Vehicle cover

No excess if an accident

was caused by an insured

third party

✓ ✓ ✓

No excess in the event of

theft-related and

weather-related claims

x ✓ ✓

Excess flexibility ✓ ✓ ✓

Write-off accelerator Optional Optional Optional

Retail value booster Optional Optional Optional

Car hire for up to 30

days, including optional

Uber benefits

Optional ✓ ✓

Emergency roadside

assistance including

DirectionAssist and

TripMonitor

✓ ✓ ✓

MultiVehicle benefit x x ✓




of 249

Confidential

Essential Classic Purple

Building cover



x ✓ ✓


HomeAssist ✓ ✓ ✓

HomeProtector ✓ ✓ ✓

Household contents cover


theft (forced entry) and


x ✓ ✓


HomeAssist ✓ ✓ ✓

HomeProtect ✓ ✓ ✓

No-average guarantee ✓ ✓ ✓

Online Vault ✓ ✓ ✓

All risk cover x x ✓



Online Vault ✓ ✓ ✓

Estimated maximum loss ✓ ✓ ✓

My Jeweller ✓ ✓ ✓

Flexible portable possessions cover

x x ✓

Unique service features

Legal Services ✓ ✓ ✓

Auto Claims ✓ ✓ ✓

ClaimsView ✓ ✓ ✓

FastTrack claims ✓ ✓ ✓

Personalised service x x ✓




of 249

Confidential

The key areas of risk that are crucial to mention to clients

Previous insurance cover:

▪ Has the client – or any other person covered under their plan, for example, a primary

driver who is not the planholder – previously been refused insurance cover or had an

insurance contract cancelled?

o If “yes”, this quote will need to go to our risk management department for

underwriting and we may decline to quote based on the details of the refusal or

cancellation.

▪ Ask the client how long they have been with their previous insurance company – the

duration importantly helps us assess their potential lapse risk.

Insurance Credit Score (ICS)

▪ Clients need to give consent to Discovery Insure to access their Insurance Credit Score

(ICS).

▪ These scores directly link to the clients’ risk.

▪ The higher their ICS, the higher their likelihood of claiming, of not paying premiums

(which could result in cancelling their insurance) and the higher their premium may be.

Supported cover

▪ Items such as portable possessions, motorcycles, watercraft, trailers, caravans and

holiday homes cannot be insured on a stand-alone basis – for example, to take out

portable possessions cover you need to take out household contents cover.

▪ The items must be supported by either the main building or contents.

▪ This is to avoid clients removing a poor risk from their current insurance to another

insurer - this is called “selective insurance”.

▪ For example, cars valued at more than R400 000 - we will not quote clients who only want

to insure such a car on their plan. The reason is that such clients are likely wealthy

enough to afford other assets such as a house and considerable household contents.

▪ Clients potentially choose not to insure these other assets with us because if they have a

car claim and we increase the rate, it is easy to cancel their contract with us and move

their car insurance to another insurer.

▪ We need to protect our overall client base from such behaviour.

Previous claims:

▪ Clients need to disclose all claims, losses and incidents in the last three years relevant to

each selection for which they require cover.

▪ They need to include the claims, losses and incidents of the spouse and family normally

residing with the insured.




of 249

Confidential

Disclosure:

▪ Clients need to disclose everything relevant to a particular risk to their insurer.

▪ If in doubt, it is best to disclose.

▪ The client is responsible to make sure all the details in their quotation and final plan

schedule are accurate, including that their sums insured are sufficient.

▪ If any details on the schedule change, for example, a home address or primary driver,

clients need to notify the insurer immediately. If not, it could lead to rejection of a claim.

Act as if uninsured:

▪ In a claim, it is expected that clients act as if they are uninsured.

▪ For example, if a geyser bursts, clients should switch off the water supply to the property

immediately and then seek help.

Benefit limits and excesses

▪ Clients need to understand their benefit limits and excesses.

▪ Limits include:

o Limits on jewellery, art and collectibles without a valuation certificate

o Accidental damage limits, if applicable

o Limits on theft or attempted theft without visible violent and forcible entry from

outbuildings and of items such as jewellery

o Per item limits and items that are specifically not covered by the “General clothing

and personal effects” section of cover under portable possessions

Optional benefit

▪ Always mention all the Discovery Insure optional benefits to clients so they

understand what their plan does not include.

▪ For example, added accidental damage cover under the Classic Plan’s household

contents section of cover, and our car hire upgrades (car type and up to 60 days).

▪ Clients need to know portable possessions cover is optional.

▪ If they have household contents cover, they must still select portable possessions

cover:

o General clothing and personal effects; or

o Specified items to cover their personal items outside their homes.

Premium payments

▪ All premiums need to be paid in advance.

▪ Paying late will cause cancellation of cover.




of 249

Confidential

▪ Reinstating cover is unlikely as we need to protect our clients and exposure by not

allowing clients to only pay premiums when they claim.

▪ If clients select a debit date not on the first of the month, they may experience a double

debit, which will collect two months’ premiums as part of their first debit order.

▪ We collect premiums in advance before the start of each month.

▪ If clients choose a debit order date of, for example, the 10th of the month, their cover

period starts on the 10th.

▪ We will deduct that month’s premium and the following month’s premium as part of their

first debit order. Then we will deduct one month’s premium each month.

Proof of ownership and valuation certificates

▪ At claims stage the client is responsible to provide documents for items of value.

▪ It is specifically important to mention this to clients. Where this is not provided, we may

limit the claim amounts.

When something bad happens

▪ If clients experience a loss from an insured event, they need to notify us immediately,

even if they don’t intend claiming.

▪ This could help if, for example, six months later a third party claims against the insured

for the same incident.

▪ It is best to advise them they need to disclose all loss events, regardless of whether they

intend claiming.

Financial advisers must keep record of client conversations and advice provided, as required by

FAIS. This is the first information that will be requested by the FSB if a complaint is laid. This

record will assist at claims stage and will help resolve disputes and protect the financial adviser

and the client.




of 249

Confidential

Important terms and glossary

Term Definition

Abandonment The giving up by an insured to the insurer of damaged property when a total loss

is claimed.

Absolute/outright

cession

The original owner of the contract transfers all of their rights to the contract to a

third party. This includes the transfer of all rights and ownership. It means the

cessionary (person to whom the contract was given) will be the new owner, with a

contractual relationship between himself or herself and the insurance company.

Acceptance

The willingness to accept the terms and conditions of a contract or circumstance.

An absolute and unqualified agreement to the terms of an offer, so creating a

contract.

Accident An unforeseen and unintended event.

Act of God An event that is the result of natural forces and which arises without human

intervention.

Average clause

A clause in a policy requiring that, where assets are insured for less than their full

value, the insured is required to bear a proportion of any loss. The proportion is

the amount by which the assets are underinsured, expressed as a percentage of

its indemnity value, at the time of the loss.

Aviation insurance

Insurance of aircraft and related aircraft activities. One aspect of aviation insurance

is Aircraft Hull. Another aspect is aircraft operators carrying passengers which may

incur public liability for which Aircraft liability insurance is required. Airports can

also incur liability – this is termed Airport owner’s and operator’s liability insurance.

Balance of third

party

The term used in South Africa to describe the form of motor insurance that covers

the insured’s liability for:

• Injury to passengers not covered in terms of the Road Accident Act 1996,

and

• Damage to the property of third parties caused by the vehicle.

Betterment The value of the improvement in an insured property when it has been repaired

or rebuilt following loss or damage.

Blanket or general

policy

A policy covering different classes of property which are grouped and insured for

one fixed amount. The value of any particular item is not stated separately.




of 249

Confidential

Term Definition

Broker An agent (financial adviser) who acts on behalf of the insured in effecting and

servicing an insurance policy.

Business

interruption

insurance

Insurance that will protect the owner of a business from losses sustained during a

period of suspended business caused by fire or other hazard.

See "loss of profits insurance"

Cancellation

A complete termination of an existing policy prior to its expiration. Usually the

insured may only cancel a policy if all premiums due have been paid. Cancellation

clause: a clause in a policy which allows the insurer to cancel after due notice.

Cancellation,

pro rata

A cancellation on which the earned premium is calculated in the exact proportion

that the elapsed period of the policy bears to the policy term. For example: an

annual policy in force for six months would have a pro rata earned premium of

50% of the total premium.

Captive insurance

company

An insurance company set up by a parent company in order to receive that parent’s

insurance business.

Capacity The amount of insurance or reinsurance available from an individual underwriter

or from the entire insurance market in a particular locality or country.

Catastrophe

Conflagration, earthquake, windstorm, explosion, and other similar events that

result in substantial losses. Catastrophic losses (the whole loss of an insurance

company arising out of a single catastrophic event) are usually protected by Excess

of Loss treaties in order to limit any one such loss to a specific amount.

Certificate of

insurance

A document issued by an insurer which is used mainly in the marine market to

certify that cover is in force.

Cession That part of an insurance transferred to a reinsurer, the transfer of rights, title and

interest under a contract.

Claim A demand on the insurer for indemnification for a loss incurred from an insured

event.

Claims incurred

These are the claims costs for an accounting period made up of claims paid for the

period, less outstanding claims at the end of the preceding accounting period

(including claims incurred but not reported), plus outstanding claims at the end of

the current period (including claims incurred but not reported).




of 249

Confidential

Term Definition

Claims incurred but

not reported (IBNR)

Claims resulting from accidents or occurrences which have taken place, but of

which the insurer has not received notice or report of loss. An estimate is made of

the amount of these claims based on previous experience.

Also termed "losses incurred but not reported"

Claims intimated

but not finalised

Amounts provided to cover the estimated ultimate cost of settling notified claims

arising out of insured events that have occurred by the end of the accounting

period, less amounts already paid in respect of those claims.

Claims-made basis See "losses-made basis"

Claims-occurring

basis See "losses-occurring basis"

Claims ratio

Ratios expressing the relationship between claims and premiums. Two ratios in

common usage are:

• The paid claims ratio: paid claims divided by earned premiums, and

• The incurred claims ratio: incurred claims divided by earned premiums.

Claims reported Claim resulting from accidents or occurrences which have taken place and have

been recorded in the insurers’ accounts.

Co-insurance An arrangement whereby two or more insurers enter into a single contract with

the insured to cover risk in agreed proportions at an overall premium.

Collateral/security

cession

This occurs when the planholder cedes the contract to a third party, normally a

financial institution as security for a loan. The planholder does not cede all their

rights to the contract and the cessionary may only keep the contract as security

until the debt has been paid.

Collective policy A policy issued by the lead insurer on behalf of a number of insurers who share

the risk.

Collision Physical contact of a motor vehicle with another object (including another vehicle)

resulting in damage.

Combined ratio The aggregate of the expense and claims ratios.




of 249

Confidential

Term Definition

Commission

Commission is the fee paid to a broker for the broker’s services and is calculated

as a percentage of the premium generated on the insurance policy. Commission

levels are presently capped by law and a broker may not be paid more than 12.5%

of the premium on motor policies and 20% on other business. There are moves

towards de-capping these maximum percentages of commission and to introduce

disclosure requirements.

Comprehensive

motor vehicle

insurance

Primarily insurance which covers any loss of, or damage to an insured motor

vehicle (including motor cycles, caravans and trailers) arising from an accident, fire

or theft. Also included in this class of business is third party and property damage

arising from motor vehicle accidents.

Consequential loss A loss not directly caused by damage to property, but arising as a result of such

damage. Example: lost production and loss of profits following a factory fire.

Consideration The payment or promise of payment for goods or services, this being the premium

in the case of insurance.

Contract The policy of insurance. The agreement between the insurer and the insured.

ontractor’s all

risks insurance

("CAR")

This is a prescribed class of insurance sometimes known as contractor’s work

insurance. CAR insurance covers the insurance of materials, buildings, structures,

works and other property in the course of construction. The policy can be

extended to include the contractor’s plant and equipment on site.

Contra

proferentem

A rule stating that any ambiguity in the wording of a contract is construed against

the drafter of the contract.

Contribution The principle whereby two or more insurers covering the same risk contribute

proportionately to any losses.

Cover

The scope of the protection provided by an insurance policy. Funds used in

insurance to meet a liability or to protect against a loss or losses. The protection

provided by insurance.

Cover note Confirmation of insurance cover, temporary evidence of the granting of insurance.

Credit life

insurance

A single or recurring premium term life-insurance policy taken out by borrowers.

Its purpose is to cover payment of outstanding loan balances in the event of their

dying, or on the happening of other specified events. This class of business is sold

in both the life and short-term insurance industries.




of 249

Confidential

Term Definition

Creditor insurance This is a class of insurance taken out by an insured to repay loans when the insured

(borrower) is incapacitated through illness or injury.

Crop insurance Insurance in respect of damage to crops in the event of hail, fire, flood, wind and

lightning.

Damages Financial compensation due to a third party for loss, damage or injury.

Date of attachment

of risk

The date with effect from which an insurer accepts liability under an insurance

policy.

Declaration policy A policy insuring trading stock which may vary to a great degree in quantity and

value during the period covered by the policy.

Delegated

authority

The authority given to an agent of an insurer to act on his/her behalf in accepting

risks within agreed guidelines.

Depreciation The extent to which property decreases in value due to use, wear and tear or other

factors.

Direct premiums Premiums arising from policies written directly by an insurer.

Direct response

marketing

Selling insurance directly to insured by mail, telephone, through the press or

electronic networks.

Direct writing

company

An insurance company whose business is produced without the use of financial

advisers (brokers).

Directors and

officers

Insurance of directors and officers in respect of claims made against them for

actual or alleged wrongful acts arising from negligence, omission or misleading

statements.

Disability A physical or mental condition that makes an insured person incapable of

performing one or more duties of his or her occupation.

Disclosure

Revealing all the facts relevant to an insurance proposal. If either party fails to do

this, the insurance contract may be declared invalid. The act of telling the truth

about the risk that is to be covered. The duty of the parties to a contract of

insurance to reveal all material facts to each other before it is concluded and prior

to each renewal.




of 249

Confidential

Term Definition

Dual insurance

Dual insurance is costly for the parties involved - an insurer will have to return the

premium that has already been collected, a broker may have to return 50% of the

commission earned on this premium and the client may only be returned that

portion of the premium that he is legally entitled to and this is normally limited to

a period of 3 years by common law. Clients who have insured their assets with

more than one insurer for more than 3 years in error will therefore lose money.

Duty of disclosure

The duty on the insured and the insurer to disclose every material fact in relation

to the policy.

See "uberrimae fidei"

Endorsement

Documentary evidence of a change to an existing policy, for example change of

address, increase in sum insured, etc. An endorsement may result in an additional

premium, a return premium or no premium adjustment.

Escalator clause The clause in a policy that allows the sum insured on the property to rise

throughout the period of insurance in step with the assumed rate of inflation.

Exceptions Clauses which exclude certain perils as being insured events.

See "Exclusions"

Excess

A policy condition whereby the insured is required to pay a portion of the loss, as

stipulated in the policy (for example the first R2 000 of a motor vehicle damage

claim). The insurer would pay the balance over that amount.

Exclusions

Provisions in a policy or treaty that exclude certain types of risk from coverage

under the policy or treaty. Two of the more common exclusions are in connection

with aviation and war.

Ex gratia Literally "an act of grace". If a claim is paid in full or in part by an insurer without

admission of liability and without waiver of right, it is paid ex gratia.

Experience The losses or ratio record of a particular risk, of a particular cover, or of a particular

insurer.

Experience rating Premium on a policy is determined by claims experience.

Expiry date The date and our stated in the policy or endorsement on which the policy ceases

to be in force.




of 249

Confidential

Term Definition

Exposure

This is the possibility of loss. It is the criterion used in measuring the extent of a

risk assumed by an insurer. Exposure serves as a basis for determining the loss

cost, or pure premiums on expired policies. The unit of exposure for an individual

comprehensive motor vehicle is one year. The term is also used generally to

represent the state of being in danger of loss from a particular hazard threatening

a risk.

Extended-warranty

insurance

Extension of a manufacturer’s warranty for a specified period, generally for a single

premium. This extension may cover motor vehicles or other manufactured items.

Extra premium An additional charge, over and above the regular standard premium for the

insurance, to pay for some extra risk inherent in the situation.

Excess

A condition where by the insured is required to pay a portion of the loss, as

stipulated in the (for example the first R2 000 of a motor vehicle damage claim).

The insurer would pay the balance over that amount. A claim excess amount is

the total of a basic excess and any additional excess amounts that apply to a

specific claim event.

Fire insurance

A contract which, in consideration of the payment of an annual premium,

indemnifies the policy owner for loss of fire and allied perils (in South Africa these

perils include storm, wind and water, impact by aircraft, impact by road vehicles

and cattle, earthquake, earth-tremor and subsidence and landslide except

property fire losses of a private or domestic nature which are covered by house

owner's and householder’s policies). Loss of profits insurance is also generally

included with fire insurance business for reporting purposes.

Also known as "property insurance"

Fire protection

Various measures taken by the insured to reduce the risk of damage from fire. This

includes fire-resistant contraction material, fire walls (walls separating parts of a

building) and fire-proof materials.

Floating policy A policy insuring property (for example, trading stock) which may be situated at

various locations.

Foreign insurer In South Africa, an insurer situated outside the Republic of South Africa.

Funeral insurance A life policy with a low sum insured intended to pay for the burial costs on the

death of the insured.

Good faith When both the insurer and the insured provide all of the relevant facts and do not

try to hide anything.




of 249

Confidential

Term Definition

Hazard A physical or moral feature that affects the likelihood of a loss occurring or has an

influence on the size of the loss.

Health insurance

Insurance providing for the payment of benefits as a result of sickness or injury. It

includes various types of insurance, such as accident insurance, disability income

replacement insurance, accidental death, dismemberment insurance and hospital

cash plans.

Hospital cash plan A policy which provides for payment of a fixed amount per day or week in the event

of the insured being hospitalised.

Householder’s

insurance This covers loss or damage in respect of household contents.

Homeowner’s

insurance

This covers loss or damage to the home of the insured from a variety of perils,

essentially fire and allied perils.

Hull insurance Insurance against loss of or damage to an aircraft, ship and other air and

waterborne craft.

Insolvency clause

The clause that holds the reinsurer liable for his pro rata share of any loss (or

losses) assumed under treaty, even though the direct company has become

insolvent.

Insurance broker An agent on behalf of the insured who negotiates the terms and cover provided by

the insured in the insurance policy.

Insurance policy

A contract whereby one party (the insurer), in return for consideration known as a

premium, agrees to indemnify another party (the insured) against specified

damage, loss or liability arising from the occurrence of specified risks or to

compensate the insured or beneficiary upon the occurrence of a specified event.

Insured The person whose interest is insured, usually the policy owner.

Insured peril Source of loss which is covered under an insurance policy.

Insurer Company offering risk protection through insurance policies.

Incurred but not

reported (IBNR)

claims

Claims that have occurred, but are not yet reported to the insurers. Many

governments require that insurers establish reserves to cover such losses.




of 249

Confidential

Term Definition

Insurable interest

The legally recognised relationship between the insured and the financial loss that

he/she suffers following a loss. The principle that requires a person effecting

insurance to have a legally recognised relationship to the subject matter of the

insurance.

Intermediary A financial adviser who negotiates contracts of insurance or reinsurance with the

insurer or reinsurer on behalf of the insured or reinsured.

Knock-for-knock

agreement

An arrangement between motor vehicle insurers whereby each will pay its own

repair costs on claims made. Each insurer agrees to forego recovery action against

the other irrespective of the questions of fault, providing all the vehicles involved

in an accident are insured with signatories to the agreement.

Limit of liability The maximum amount for which an insurer is liable on any one loss.

This is sometimes referred to as "limit of indemnity"

Lloyd’s of London An association of persons grouped together in syndicates providing insurance.

Lloyd’s broker A broker or financial adviser who has been given the responsibility by Lloyd’s of

placing insurance at Lloyd’s.

Lloyd’s syndicate A group of underwriters with Lloyd’s of London who specialise in underwriting

particular risks.

Lloyd’s underwriter An individual member of a Lloyd’s syndicate.

Loading Those elements added to a premium to allow for an insurer’s expenses.

Loss adjuster

A person who acts on behalf of the insurer, or the insured, to investigate the

circumstances of a loss and to recommend the amount to be paid.

Also known as "loss assessor"

Loss of profits

insurance

A form of consequential loss insurance which compensates the insured for loss of

earnings resulting from the interruption of business, usually as a result of fire or

flood.

See "business interruption insurance"

Loss ratio The ratio of claims to premiums.




of 249

Confidential

Term Definition

Marine insurance

Marine insurance covers the risk of loss to ships and vessels and also provides

cargo cover. Marine cargo insurance may be divided into two divisions: inland

marine, which covers property and goods in transit between locations without

requiring sea transport, and ocean marine, which covers property and goods

subject to a sea voyage. Marine cargo policies are issued in various forms

depending on the requirements of the shipper, the ship-owner, the charterer, the

co-signee, etc.

Material damage

warranty

Before interruption insurance is effective, a material damage claim under other

property insurances should have been submitted.

Material fact A fact that would influence a prudent underwriter in determining the premium for

a policy.

Mead &

McGrouther (M&M)

TransUnion Auto

Dealers Guide

The Mead and McGrouther Auto Dealers Guide is a publication that specifies

motor vehicle values. This is the value referred to as “the book value”. The M&M

guide is published on a monthly basis and is used by most insurers to obtain the

retail, market value and trade value for a motor vehicle. This guide is also

referred to as the Auto Dealers Guide.

Misrepresentation

Information supplied by the insured to the insurer that is incorrect to a material

degree. The supply of such information, whether innocently or fraudulently, gives

the insurer the right to repudiate the contract.

Motor insurance Cover in respect of motorised vehicles including fire, theft, impact, collision and

third party liability cover.

Negligence

The basis for liability insurance. It is the failure to act with the legally required

degree of care for others.

Also known as "neglect"

Net claims The aggregate of claim payments less all deductions for reinsurance and other

recoveries during a given period.

Net line

The insurance business retained by a ceding company solely for its own account

and which is not reinsured other than by catastrophe cover, stop loss cover or

some other form of aggregate protection.

Also known as "retention" or "net account"

New business Policies written in response to applications for insurance, as distinguished from

renewal.




of 249

Confidential

Term Definition

New for old Insurance where the replacement value of the property that has been lost or

damaged is payable without deduction for depreciation.

No-claims bonus

The amount by which a renewal premium is reduced if the insured has not made

a claim under the insurance policy for one or more consecutive preceding years.

Applied particularly to motor comprehensive cover.

Non-disclosure The failure to disclose material facts before entering into a policy.

Nuclear risks By international agreement such risks are excluded from all policies.

Operative clause The clause in a policy that sets out the circumstances in which the insurers will

make claim payments.

Over-insurance Insurance exceeding the amount of the possible loss on a policy.

Peril Possible loss occurrences against which insurance cover is obtained. For example,

fire, windstorm, collision, hail, bodily injury, property damage, loss of profits etc.

Permanent

disability

Disability which prevents a person from working in his/her normal occupation. This

may be total or partial (able to still work but not in the same occupation).

Personal accident

A class of insurance which provides a fixed payment in the event of an insured

being injured or killed in an accident. The amount paid varies according to the

nature of the injury, for example, loss of a finger, loss of an arm, etc.

Plan Schedule

The Plan Schedule states personal details, items insured, plan types and options

chosen, cover effective date, premium applicable and amount payable at the due

date, and any excesses. The Plan Schedule includes the Annexures, such as the

Benefit Limit Annexure, that gives extra information on benefits.

Planholder A person who owns the insurance contract.

Policy

The legal document, issued by the insurer to the policyholder, which outlines the

conditions and terms of the insurance.

Also called "the contract"

Policy fee An amount added to the basic premium to reflect the cost of issuing the policy.

Policyholder A person who owns an insurance policy.

Also known as "policy owner"




of 249

Confidential

Term Definition

Policy schedule The tabulated portion of a policy giving particulars of the policyholder, goods

insured, sum insured, period of cover, excesses and similar information.

Preamble clause A clause in a policy that sets out the essential elements of the contract.

Premium The monetary consideration which the policyholder pays to the insurance

company for a contract of insurance.

Prescription period The period within which action must be taken by one party against another to

secure fulfilment of an obligation.

Pro rata premium The premium based on the length of time for which the insurer was actually on

risk.

Product liability

insurance

Insurance taken out by manufacturers, wholesalers, distributors and

sometimes retailers against claims arising out of the consumption,

handling or use of a product or goods away from the premises where the

goods are manufactured or sold. Product recall is also written under the

heading if specified.

Property

insurance See "fire insurance"

Proposal

A request for insurance submitted to the insurer by or on behalf of the insured.

The proposal usually includes sufficient facts for the insurer to determine whether

or not it wishes to accept the risk. It will be illegal for a broker to allow an insured

to sign a partially completed or blank proposal form upon the introduction of the

policyholder protection rules.

Proximate cause The direct, dominant or specific cause of a loss or the uninterrupted chain of

events that brought about the loss.

Public liability

insurance

A prescribed class of insurance business covering liability exposures of individuals

and businesses for damage to property and injury to individuals.

RAF "Road Accident

Fund"

This is a state insurer that provides compulsory third party liability insurance for

motorists for bodily injury. The premiums are paid through a levy on petrol

purchases.

Rate The sum charged per unit of exposure by which the premium is calculated.




of 249

Confidential

Term Definition

Rating agency An independent organisation which provides opinions on the claims-paying ability

of insurers.

Reinstatement The making good of damaged property; the restoration of the sum insured after

settlement of a loss on payment of an additional premium.

Reinsurance

An agreement whereby an insurance company transfers part or all of its risk of loss

under insurance policies it writes by means of a separate contract or treaty with

another insurance company. The insurance company providing the reinsurance

protection is the reinsuring company or reinsurer. The insurance company

receiving the reinsurance protection is the ceding company. Reinsurance

protection provided is known as reinsurance accepted; from the standpoint of the

ceding company, reinsurance protection received is known as reinsurance ceded.

Replacement /

reinstatement

policies

Fire policies that are designed to protect the insured against the effect of inflation

in property values.

Retention limit The maximum liability that an insurer wishes to keep for his own account in respect

of a particular risk.

Risk

The hazard exposure or chance of loss. The term "risk" is used also in a

general way to designate the subject matter of an insurance policy. It may

also be used as a generic term for the insured.

Risk management Procedure to minimise the possibility of loss.

Risk transfer

mechanism Risk is taken away from one person (the insured) and given to another (the insurer).

Road Accident Fund

(RAF)

This is a state insurer that provides compulsory third party liability insurance for

motorists for bodily injury. The premiums are paid through a levy on petrol

purchases.

SAFSIA The South African Financial Services and Intermediaries Association. This is one of

the associations of insurance brokers. It lays down a code of conduct for members.

Salvage The amount received by an insurer from the sale of property (usually damaged) on

which he has paid a total loss to the insured.

SASRIA The South African Special Risks Insurance Association. This insurer provides cover

against loss from political riot.




of 249

Confidential

Term Definition

Schedule A document forming part of the policy indicating the sum insured, premium period

of insurance and applicable information.

Self-insurance An insured protects his/her own risk out of own resources. This can be done

through a risk-financing arrangement.

Short-term

insurance

Non-life insurance. In the United States, this is referred to as "property and

casualty insurance" and in the United Kingdom as "general insurance".

Spouse

A person who is party to a marriage or union in law, or a union contracted in

accordance with customary law or which is recognised as a marriage in

accordance with the tenets of any religion, or a continuous cohabitation (living

together) in any partnership.

Solvency margin The minimum size of the shareholders’ funds required by the supervisory

authorities.

Specific policy A policy which insures a particular item of property for a specific amount.

Subrogation The right of one party to stand in place of another and take up the latter’s legal

rights against a third party.

Sum insured The stated monetary amount or amounts of indemnity or cover under an

insurance policy.

Surplus That part of the sum insured that the insurer does not retain and

consequently reinsures.

yndicate (Lloyd’s) A group of individuals or companies at Lloyd’s who pool resources to underwrite

risks.

Territorial limits The geographical area within which an insured event must occur to be covered in

terms of the policy.

Third-party cover

(under motor

vehicle insurance)

Provides cover for legal liability for damaging a third party’s property as a result of

the use of a motor vehicle.

Third party Any person, not a party to the insurance contract, who has an alleged or actual

right of action for injury or damage against the person insured under the policy.

Total loss Loss entailing the payment of the total sum insured under an insurance policy.




of 249

Confidential

Term Definition

Uberrimae fidei

In all contracts of insurance, it is a fundamental principle that the parties must

exercise the utmost good faith towards each other. Any material fact which would

influence the parties to the contract must be disclosed, otherwise there is ground

for avoiding the policy. This applies to both intentional and innocent failure to

disclose material facts. The test of materiality is whether that fact would have

influenced a prudent insurer in his decision to accept the risk and the premium to

charge.

Underinsurance The difference between the possible loss and limit in insurance.

Underwriter

One who determines the acceptability or retention of business. Loosely, the person

involved in setting premiums. The term is also used to denote an insurance

company.

Underwriting result The underwriting profit or loss ascertained by deducting claims incurred, net

commission and management expenses from premiums earned.

Good faith See "uberrimae fidei"

Valuations A list of property with values allocated to each item as the basis of insurance.

Void Of no legal effect.

Waiver The surrender of a right or privilege which is known to exist, or might exist.

War clause By international agreement insurers do not underwrite war risks.

Warranty A clause in an insurance contract presenting a condition relating to the degree of

risk and non-compliance which invalidates the contract.




of 249

Confidential

References

Discovery. 2011. Get Short-term Fit. Sandton: Discovery

Discovery. 2016. Discovery Insure Financial Adviser Technical Guide. Sandton: Discovery

Discovery. 2016. Discovery Insure Plan Guide. Sandton: Discovery

FSB.co.za. 2011. Special report on the results of the short-term Insurance industry for the period

ended December 2011 ftp://ftp.fsb.co.za/public/insurance/ST_SPECIALR_DEC2011_(final).pdf

Investopedia.com.2012.Bill of Lading.

http://www.investopedia.com/terms/b/billoflading.asp#axzz1ynQfFZIu

kpmg.co.za. 2011. The South African Insurance Industry Survey 2011.

http://www.kpmg.com/NA/en/IssuesAndInsights/ArticlesPublications/General-

interest/Documents/KPMG%20South%20African%20Insurance%20Industry%20Survey%202011.p

df

Milpark Business School. 2011. Financial Planning Products. Claremont: Milpark Business School

Milpark Business School. 2011. Basic Principles of Personal Financial Planning. Claremont: Milpark

Business School

Moneyweb.co.za. 2011. Special Report Podcast: Adrian Gore-CEO, Discovery, 19 May 2011.

http://www.moneyweb.co.za/mw/view/mw/en/page299360?oid=537398&sn=2009+Detail&pid=29

9360

Other documents used:

▪ The Plan guide

▪ The Financial Advisor guide

▪ Technical Marketing one pagers

▪ Excess annexure

▪ Benefit limits annexure

▪ Objection handling document

▪ FAZ servicing document

▪ Risk management document

ftp://ftp.fsb.co.za/public/insurance/ST_SPECIALR_DEC2011_(final).pdf

http://www.investopedia.com/terms/b/billoflading.asp#axzz1ynQfFZIu

http://www.kpmg.com/NA/en/IssuesAndInsights/ArticlesPublications/General-interest/Documents/KPMG%20South%20African%20Insurance%20Industry%20Survey%202011.pdf



