vulindlela underwriting managers product information guide

Vulindlela Underwriting Managers

Product Information Guide

(Assetsure)

Index Page Number

A) General Conditions 3

a. Scope & Target of VUM Assetsure 3

b. Territorial Limits 3

c. Policy Cancellations 3

d. Payment of Premium 3

e. Stated Business Activity 3

B) Policy Benefits

a. Zuzimali Cash Back Benefit 4

C) Cover Sections

a. Motor 4

b. Contents & Stock 6

c. Electronic Equipment & Machinery 7

d. Money 8

e. Business All Risk 9

f. Goods in Transit 9

g. Business Interruption – Difference basis 10

h. Public Liability – Claims Made Basis 12

i. Employee Dishonesty 13

j. Personal Accident 13

k. Sections covered by SASRIA 14

D) Excluded Business Activities 14

E) Emergency Assistance 14

A) GENERAL CONDITIONS

Scope and Target of VUM AssetSure :

VUM AssetSure is aimed at insuring small, emerging businesses. This means that we are guided by the cover limits in the sections below. This product is designed to insure businesses with an annual turnover of R20 million or less.

Territorial Limits : The cover granted by your Policy applies only within the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe, Malawi, Zambia and Mozambique.

Policy Cancellations :

We may cancel a Policy by giving 31 days’ notice in writing.

Policies are automatically cancelled if no premiums are received for 2 consecutive months on a monthly policy, and if premium is not received within 15 days of inception on an annual policy.

Payment of Premiums The Policy Premium will be deducted from the bank account, as per the signed or voice logged Debit Order Mandate. If the Debit Order is returned unpaid by your bank, another collection will be attempted on the 15th. If this second debit on the 15th is also returned, there will be NO COVER for that month. Please note that the actual Premium Due Date of this Policy is ALWAYS the 1st of the month no matter the method of payment, and you therefore have 15 day’s grace from this date to pay your premium. If a premium is paid after the 16th of the month, a Claim will ONLY be entertained if it occurs AFTER the payment date. If the premiums are not paid for two consecutive months, this Policy will be cancelled. Stated Business Activity : It is critical that VUM is informed of any changes in the insured’s nature of business (listed as the Stated Business Activity in the Policy Schedule), as all the rating is based around this.

B) POLICY BENEFITS

The ZUZIMALI Cash Back benefit

The ZUZIMALI Cash Back benefit rewards you with a cash refund of 10 % of premiums paid (less Broker’s Commission and Policy Fees) payable after a continuous 36 month period of cover, as long as no claims were submitted under the following Cover Sections :

1. Motor 2. Buildings, Contents and Stock 3. Electronic Equipment and Machinery 4. Money 5. Business All Risks 6. Goods in Transit

The ZUZIMALI Cash Back benefit is calculated at a Cover Section level, however will not be paid if the total Policy Loss Ratio during the 36 month period exceeds 65 %.

C) COVER SECTIONS

a) MOTOR

Cover for loss or damage to the following categories of vehicles belonging to the insured and used for commercial purposes in line with the insured’s stated business activity :

� Any passenger vehicles registered in the Republic of South Africa – Cover is limited to a maximum of R500 000.

� Light Delivery Vehicles (LDV) – Cover is limited to a maximum of R500 000. � Commercial vehicles not exceeding 10,000 kg gross vehicle mass – Cover is

limited to a maximum of R500 000. � Motorcycles – Cover is limited to a maximum of R200 000. � Trailers - Cover is limited to a maximum of R100 000. � Special Purpose Vehicles (SPV) – Light industrial type vehicles such as forklifts,

Cover is limited to a maximum of R500 000.

Basis of Cover :

� The vehicles will be insured for the Current Retail Value as determined by the “Trans Union Auto Dealers’ Guide”.

� Any additional non factory-fitted extras and accessories as well as any conversion costs must be separately specified for them to be covered.

Cover is limited to the Territorial Limits stated in the policy wording (Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe, Malawi and Mozambique)

Cover Options:

1.1 Comprehensive

The Third Party Property Damage Limit is R2 500 000

Motor Vehicle Security Requirements :

� All vehicles must be fitted with a VSS or VESA level 3/4 approved immobilizing device � All vehicles over R200 000 must be fitted with an approved Tracking Device A copy of

Invoice is required for all vehicles purchased from a motor vehicle dealer.

Vehicle Inspections :

� Brand New Vehicles – Copy of Tax Invoice from Motor Dealership not more than 30 days from Date of Taking Delivery

� Used Vehicles : o 4 Clear Photos of the Vehicle for Used Vehicles

� 1x Photo of the Back and left side � 1x Photo of the Front and right side � 1x Photo of the Odometer � 1x Photo of the Vehicle License Disc

� Vehicles Currently Insured – Copy of current Insurer’s Policy Schedule, Claims History & Loss Ratios where applicable.

Specific covers applicable to Comprehensive:

Comprehensive Cover Towing, Storage & Wreckage Removal – R5 000

Emergency & Medical Expenses – R2 000 per Person, Maximum R10 000 per Event Passenger Liability – R2 500 000

Optional Covers applicable to Comprehensive :

Comprehensive Cover

Audio Visual Equipment Fitted Extras & Conversion

Costs Car Hire - Passenger vehicles & LDVs (30 / 60 days)

Vehicle Credit Shortfall Cover Loss Of Keys (R5 000, R10 000 or R20 000)

b) CONTENTS & STOCK

2.1 Contents – Cover for loss or damage to the insured’s office contents and other movable contents consistent with the insured’s Stated Business Activity.

2.2 Stock – Cover for loss or damage to the insured’s stock in trade, raw materials and goods being manufactured consistent with the insured’s Stated Business Activity.

Please note that cover is limited to a maximum sum of R 3 million for the following sections combined : (02) Contents and Stock, (03) Electronic Equipment and Machinery and (07) Business Interruption.

Insured Events (Fire and allied perils cover) :

� Fire, lightning and explosion including Fire extinguishing charges � Earthquakes � Acts of Nature � Bursting of Geysers and Water pipes � Malicious Damage � Impact By – Aircraft & Aerial Devices, Animals, Vehicles and Falling trees

Claim Preparation Costs up to R2 000 are included for valid claims due to an insured peril.

Basis of cover :

The sums insured must be based on the Current Replacement Values which must include additional charges and fees that may be incurred following loss.

Average :

The Average Condition will apply in the event of under insurance.

Specific Covers applicable to Contents :

2.2 Contents

Paintings & Decorative Ornaments: � Valuation Certificates Required for items > R5 000 � Limit per Item

Power Surges & Dips

Furniture Plate Glass Documents & Plans – Liability Limit R3 000

Documents & Plans – Replacement Limit R3 000 Locks & Keys – Limit R4 000

Personal Effects – R3 000 any one item maximum R10 000 any one event Loss of Rent Paid - 25% of sum insured

Optional Cover :

2.2 Contents

2.3 Stock

Theft – First loss Limit Theft – First Loss Limit

Glass Deterioration of Refrigerated Stock: - Cooling unit must be insured under Machinery. - Time Excess is 12 Hours

Subsidence & Landslip

Subsidence & Landslip

Accidental Damage Cover

Accidental Damage Cover

c) ELECTRONIC EQUIPMENT AND MACHINERY

3.1 Electronic Equipment – Cover for loss or damage to the insured’s electronic and technological equipment such as computers, licensed software, scanners, printers, photocopiers, fax machines, projectors, audio and visual equipment.

3.2 Machinery – Cover for loss or damage to the insured’s machines, instruments and equipment of electronic and/or mechanical nature that are used to perform specialised functions in manufacturing, industrial and other technological processes.


All Risks Cover :

All perils are covered except those that are specifically excluded.

Basis of Cover :

Each item is specified on the policy schedule and insured for Current Replacement Value.

Average :

The Average Condition will apply in the event of under insurance.

Optional Cover :

3.1 Electronic Equipment

3.2 Machinery

Theft Cover (Premises)

Theft Cover (Premises)

Extended Theft cover for Portable items

Machinery Breakdown Cover

Reinstatement of Data

d) MONEY

Cover for loss or damage to the insured’s cash or cash equivalents (e.g. Traveller’s cheques, bank drafts, cheques, postal and money orders, credit card vouchers, cell phone airtime, and other negotiable instruments for which they are responsible). Cover is limited to a maximum of R60 000.

Basis of Cover :

Cover is based on the Major Loss Limit - The maximum amount of Money that may be lost, damaged or stolen at any one time whilst at the client’s premises or in transit to and/or from the bank.

Minor Limits :

1. Money not contained in a Safe or Strong room: a. Outside normal working hours b. At the private residence of authorised persons c. Whilst in the custody of authorised persons travelling on business worldwide

R1 500 R1 500 R2 500

2. Damage to Safes, Tills, Cashboxes and Strong rooms following theft or any attempted theft.

R2 000

3. Loss or Damage to Personal Effects belonging to employees, members, partners or directors following theft or attempted theft.

R2 000

Optional Cover :

Medical Expenses – Medical expenses incurred by a person injured during theft or attempted theft.


Seasonal Increase – The Major Loss Limit is increased by a stated amount during either:

� Public & School Holidays according to the South African academic calendar. OR � Specified Months limited to 3 months chosen by the client noted on the Policy

Schedule.


Excess - Money Excess :

� 10% of Claim min R500

e) BUSINESS ALL RISKS

Cover for loss or damage to portable items or devices that are owned by the business and used in line with the Stated Business Activity and often carried away from the Stated Business Premises by staff and authorized persons. Cover is limited to a maximum of R100 000 and to R5000 for any one item listed under General Tools and Equipment.

All Risks Cover :

� All perils are covered except those that are specifically excluded and cover is worldwide.

Basis of Cover :

� Each item is specified on the policy schedule and insured for the Current Replacement Value.

Average :

� The Average Condition will apply in the event of under insurance.

f) GOODS IN TRANSIT

Cover for loss or damage to goods and merchandise goods consistent with the client’s stated business activity, whilst they are being transported, loaded onto or unloaded from the conveying vehicle and whilst they are stored temporarily during the course of transit.

Cover is limited to a maximum Load Limit of R100 000.

Insured Events :

� Fire, lightning and explosion including Fire extinguishing charges. � Earthquake � Acts of Nature � Accidental Damage – Collision, Derailment and Overturning. � Malicious Damage.

Basis of Cover :

Cover is based on :

1) The Load Limit. This is the maximum value of goods at Cost Price that can be carried on the conveying vehicle at any one time. Load Limit must include the following:

� Ropes, chains, tarpaulins and other packaging costs � Debris Removal Costs – Limited to 15% of the Load Limit.

2) The number of transits per month.

Optional Covers :

� Theft & Hijacking � Transit in Countries outside RSA (within Territorial limits)

g) BUSINESS INTERRUPTION – Difference Basis

Cover for the financial loss that the insured may suffer following interruption of their Stated Business

Activity expressed as Loss of Gross Profit due to :

� Reduction in Turnover � Increased Cost Of Working


Condition of Cover

The interruption in business activities must be as a result of loss or damage that occurs at your business premises noted above, and giving rise to a valid claim under the following Cover Sections of the policy only :

� Section 2. Contents & Stock � Section 3. Electronic Equipment & Machinery

Definition of Terms :

� Turnover - The money earned by a business entity in return for goods sold or services rendered as per the Stated Business activity.

The word Turnover as used in VUM AssetSure Business Interruption cover means Trading Turnover / Revenue generated in return for services rendered / Rentals received for premises leased.

� Annual Turnover - The Turnover as per your Stated Business Activity during the twelve months immediately before the date of loss or damage.

� Standard Turnover - The Turnover as per your Stated Business Activity during that period in the twelve months immediately before the date of loss or damage which corresponds with the Indemnity Period. The Turnover attained during the Indemnity Period is measured against the Standard Turnover attained during the same period in the previous twelve months to determine the reduction in Turnover.

� Indemnity Period - The period commencing with the damage and is the maximum period of time in which your business is expected to recover and return to the Standard Turnover. Indemnity Period Options available – 3 / 6 / 9 / 12 months.

� Rate Of Gross Profit - Rate of Gross Profit earned on the Annual Turnover [Gross Profit / Turnover x 100]

Basis of Cover :

� Gross Profit Sum Insured – Calculated as per the Difference Basis method. [Turnover + Closing Stock less Opening Stock + Purchases]

� Annual Turnover – Useful when calculating claims settlement and Underinsurance. � Average - The Average Condition will apply in the event of Underinsurance. � Additional Claims Preparation Costs – Additional costs reasonably incurred to

substantiate a valid claim, limited to R3 000.

The Role of the Loss Adjuster :

� A competent Loss Adjuster will be appointed to handle the settlement of all Business Interruption claims.

Optional Covers:

� Machinery Breakdown Business Interruption – Loss of Gross Profit due to Reduction in Turnover and/or Increase in Cost of Working following a Machinery Breakdown claim.

� Additional Increase In Cost Of Working – The additional expenditure necessarily and reasonably incurred with our consent, during the Indemnity Period following interruption, for the purpose of maintaining your Stated Business Activity.

� Specified Suppliers & Subcontractors – Loss of Gross Profit due to Reduction in Turnover and/or Increase in Cost of Working following disruption of business activity at the premises of a specified Supplier or Subcontractor by an insured peril.

� Specified Customers – The Loss of Gross Profit due to Reduction in Turnover and/or Increase in Cost of Working following disruption of business activity at the premises of a specified Customer by an insured peril.

h) PUBLIC LIABILITY – Claims Made Basis

Cover for Damages that the client shall become legally liable to pay to third parties following :

� Accidental death, bodily injury or illness � Damage to tangible property

Arising from the client’s Stated Business Activity.

Cover is limited to a maximum of R3 million.

Basis of cover :

General Public Liability Limit of Indemnity – The maximum amount of money that will be paid out in respect to damages and legal costs arising from the same event.

Cover is limited to a maximum of R3 million

Optional Covers :

Retroactive Cover – Cover for claims made in the current period of insurance for Damages arising from events that occurred in the twelve months preceding the date of cover inception.

Retroactive cover is only applicable if the insured held a valid Public Liability Insurance policy in the last twelve months preceding the date of policy inception.

Products Liability – Cover for Damages that the insured shall become legally liable to pay to third parties arising from goods sold by the insured or supplied on behalf of the insured. Cover is limited to a maximum of R1 million.

Defective Workmanship - Cover for Damages that the insured shall become legally liable to pay to third parties arising from any errors, defects or omissions in the work that the insured would have done, completed and handed over, as per the insured’s Stated Business Activity. Cover is limited to a maximum of R1 million.

Work-Away Liability - Cover for Damages that the insured may become legally liable to pay, including legal costs, following accidental death, injury and illness or accidental loss of or physical damage to tangible property, which occurs during the course of their Stated Business Activity whilst working away from the Risk Address as stated in the Policy Schedule. Cover is limited to a maximum of R1 million.

Employer’s Liability - Covers Damages that you may become legally liable to pay following death, bodily injury or illness of any person that you have employed under a contract of service or apprenticeship. Cover is limited to a maximum of R1 million.

Aggregate Annual Limit

The Aggregate Annual Limit for claims under this Section is 2 times (2 x) the Cover Limit stated above for General Public Liability, as well for any of the following Optional Cover Extensions applicable to this Section :

a. Products Liability

b. Defective Workmanship Liability

c. Work-Away Liability

i) EMPLOYEE DISHONESTY

Cover for losses that the insured will incur following acts of Fraud or Theft by the insured’s employees. Cover is based on the Sum Insured which represents the insured’s exposure and premium is linked to the number of employees employed by the insured.


Aggregate Annual Limit – The maximum amount that can be claimed in respect of damages arising from claims made within any 12 month period is 3 times the Sum Insured.

j) PERSONAL ACCIDENT

Cover for the accidental death or permanent disability of the insured’s employees / members / partners / directors / principals. The accident must be caused by sudden, unforeseen, violent, external and visible means.


Cover is on a Named Person basis and each insured person’s benefits are shown on the policy schedule.

Optional Cover :

� Medical Expenses – Reasonably incurred to limit the extent of injury and to prevent loss of life following an accident. Cover is limited to a maximum of R20 000.

� Temporary Total Disability – A weekly payment made up to 52 weeks following an accident that renders the insured person incapable of pursuing normal occupation, employment and business activities subject to a Time Excess of 7 Days. Cover is limited to a maximum of R5 000 per week.

� Burns Disfigurement – Cover for Permanent Disfigurement arising from accidental external burns.

Cover is limited to 50% of the Death & Permanent Disability Limit.

Claims are settled according to percentage permanent disfigurement of body surface area.

D) SECTIONS COVERED BY SASRIA

Automatically included in the following sections :

� Motor � Contents and Stock � Electronic Equipment and Machinery � Money � Business All Risks � Goods in Transit � Business Interruption

E) EXCLUDED BUSINESS ACTIVITIES

Please take note of the following Business Activities that VUM chooses not to insure :

� Armed Response and Security Guarding � Emergency Services � Car Rentals � Heavy Haulage and Trucking � Contractors All Risks � Buses � Aviation � Sectional Title and Shareblock � Marine � Specialist Liability � Engineering � Municipalities � Tourism � Chemical Manufacturers and Distributors � Motor Traders � Tour Businesses

In addition, VUM reserves the right to decline to quote on any other business that does not fit our risk profile.

F) EMERGANCY ASSISTANCE Please make use of the following phone numbers should you experience a Motor Accident. Please note this applies only to Motor Accidents , it is not a Roadside Assistance service. 0861 886 911 - easy to remember as 0861 VUM 911 , or the “Please Call Me” number : 083 939 0007