The festive season is once again upon us. The decorations are coming out of the closet and joy is about to be spread across the entire world. A rise in merry-making and jolly good times is expected. Unfortunately, so is a rise in the number of crime related activities. According to the South African Police Services (SAPS), the crime rate tends to increase during the festive season.

Criminals capitalise on opportunities during the holiday season, burglaries increase as people go away on holiday and leave their homes unattended, and home robberies increase due to people letting their guards down.

The other crimes which tend to surge upwards during this period are car hijackings, drunk driving, violent crimes causing bodily harm amongst others. These are unfortunately some of the things which can dampen any good time you might be having, just like being mistaken for someone who has already been served with a plate of food at a wedding.

Here are a few tips to help you get through this festive season without a dent in your mood: –

• Log a test on all alarms, motion sensors and electric fences. During load shedding, alarm power packs and batteries deplete quickly. Ensure you have the necessary backups in place. CCTV cameras should also be checked as well as armed response where applicable.

• Unplug appliances and electronic devices that may be vulnerable to power surges whilst away from home or during load shedding.

• If you have a generator, ensure that the connections are tested as faulty connections could cause fire damage.

• High value items are a target for criminals, with a major spike over this time of the year. Be aware of your surroundings, and refrain from wearing any high value jewellery or watches where possible.

• High value items should also be locked away securely in a safe if the premises is left unattended over the holiday season.
• Practice defensive driving. Always be cautious when out on the road as some people may be under the influence of intoxicating substances. Be very careful especially when you have the right of away as this is when drivers tend to relax yet other motorists may be ignoring the traffic rules. Wait and delay to start moving even if you have the right of way. Avoid road rage as these tend to end up violent when people are hyped up.
• Be vigilant when driving. Always observe suspicious vehicles that may be following you. it has been reported that usually criminals will follow you around when they want to hijack your vehicle or rob you.

Ayoba insurance broker would like to wish you the best of the festive season.

Any comments or questions can be left in the comments box at the end of this article.

For a quotation please contact Ayoba Insurance Brokers on +27 11 395 1631 or email info@ayobainsurance.co.za

Alternatively, you can follow the link: https://ayobainsurance.co.za/detailed-quote/ leave your details and we will contact you.

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

I vividly remember being in primary school when we got the news that Luca, my mom’s first cousin, was going to get married so there was going to be a wedding soon. Him and his bride asked my parents if I could be part of the “mini bridal team”. Never in my life had I felt so honoured and appreciated. Having previously gone to all those weddings and noticing how those set at the “high table” were always served lunch first and that the “mini bridal team” also get a full chicken drumstick to themselves, I just knew that being invited to be in my cousin’s mini bridal team was an opportunity of lifetime. It might not seem so now but trust me back then a chicken drumstick had more value than it does today.

The preparations for the wedding were in full force. Venue was booked, decoration people were paid, and most importantly my tuxedo had been bought. This I must mention was my first tuxedo ever. I just could not wait for the wedding day; the days just could not move fast enough for me. I was over moon.

Unfortunately, as fate would have it, on the morning of the wedding we were advised that the wedding venue had been gutted down by a ferocious fire the night before. I have in my life lost people and things but till this day I am yet to feel the level of hurt that I felt that terrible morning. I was inconsolable, one would have thought I was a guy who had lost his winning lottery ticket before claiming the jackpot. All because the wedding was then called off due to a lack of funds to urgently secure an alternative venue.

As time went by, I came to know that the wedding would not have had to be cancelled if they had done their research and purchased events insurance. It turns out the insurance market has a product specifically designed to protect your event-related revenue or expenses against cancellation due to circumstances beyond your control. These events include weddings, parties, sports events, Tradeshows, Conferences, Expos, Consumer Shows, Annual Meetings, Conventions, Sporting Events, Concerts, Award Ceremonies, Fairs, Festivals, and more. Some of the covered costs include promotional material, staff costs, merchandising, advertising, supplier bookings and so on. The cover can also be geared to cover the loss of income if an event is cancelled or interrupted and would cover ticket cancellation costs, for example.

Given the constant lockdown regulations amendments there has never been a better time to enquire about this product. Many planned events have had to be cancelled following unforeseen reasons which also include tightening of the lockdown rules. In most instances, organisers and individuals in general have lost their deposits and other cost of irrecoverable expenditures. Like any other insurance policy, the terms of cover can be negotiated between yourself as the client and the insurer through Ayoba Insurance Brokers.

The other good news is that cover for events can be provided for not only the actual cancellation of an event but also for any liability claims against yourself as the event organiser by any attendees/guests if the event does go ahead as planned.

Event Public Liability Insurance protects the eventorganiser against compensation claims made by members of the public. The cover can be taken as a standalone policy, meaning you need not take up events cancellation insurance in order to have it. It can be issued on a once off basis like a wedding or on an annual basis to cover various events you may have, like a football or rugby club that has games open for the public every weekend.

In some instances, there are public events that need to have specific events insurance in place. Organisers of public events such as concerts, public rallies and sporting fixtures like the Cape Town Cycle Tour are governed by the Safety at Sports and Recreational Events Act of 2009 (SASREA). The legislation stipulates a legal obligation to ensure the safety and security of those attending such events – as well as proper event liability insurance.

The reality is that even with the best planning and risk management measures in place, there will always be the potential for something that is entirely unexpected and beyond human control that could go wrong at an event or causing the vent to be cancelled. There is thereby a strong need for sound, expert insurance advice and guidance to protect businesses and individuals.

Any comments or questions can be left in the comments box at the end of this article.

For a quotation please contact Ayoba Insurance Brokers on +27 11 395 1631 or email info@ayobainsurance.co.za

Alternatively, you can follow the link: https://ayobainsurance.co.za/detailed-quote/, leave your details there and we will contact you.

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

If you have taken out Third Party Motor Vehicle Insurance Cover (also known as ‘liability to other parties’) it means that you will be covered against financial liabilities after your vehicle has caused an accident/incident that resulted in injury/death to another person or loss/damage to someone else’s property. It must be greatly noted that you need not be the one driving the vehicle for summons or a letter of demand to be sent knocking at your door. It does not matter who was driving at the time of accident as it is not the driver but the “motor vehicle” which is deemed liable. Thereby, the registered owner of the vehicle is held accountable. This explains why some have received demands for vehicles that are no longer in their custody but still registered in their name. it must be noted that the person who was driving and the vehicle itself must however have been legal on the road for the third-party motor vehicle insurance policy to indemnify.

Though compulsory in countries such as Australia, Germany, Hong Kong, Hungary, Indonesia, India, Ireland, Italy, New Zealand, Norway, Romania, Russia, Spain, the United Arab Emirates, the UK the United States of America, and Zimbabwe, third party motor vehicle insurance cover remains optional in the republic of South Arica. It was compulsory in South Africa from 1942 until 1997, but today, it is said that seven out of every 10 cars on South Africa’s roads are not insured.

In his 2020 Budget Speech, the Finance minister, Mr. T. Mboweni hinted that this cover could be made obligatory for all motorists in the country. Meaning that if passed into law, it would be illegal to drive a vehicle on the public roads without third party motor vehicle insurance

This could be greatly pleasing as many have often been left frustrated after their vehicles are damaged. For example, I once met a man who made a living using his bakkie to bulk-buy vegetables from Mpumalanga province and resell them to vendors within the Gauteng region. One fateful afternoon he was unfortunately involved in an accident with an old lady who was later adjudged to have been the guilty party for the accident which wrote off his bakkie.  The old lady had no insurance of any kind. To make matters worse, she was struggling to make ends meet and had nothing which could be attached so the man could be compensated for his written off car. Just like that, he lost everything and could not recoup a single dime. Without his bakkie, he not only lost his source of income.

It might still be a while before the parliament starts the debate on whether to make third party insurance mandatory on or not. The truth is it does not have to be made compulsory for one to take it. There remains the risk that you bump into a Ferrari and be held liable for the millions of Rands worth in damages. It is much wiser to take-out third-party insurance now if you do not already have. but what about the damages to your own vehicle? Remember, third party insurance only covers the damages/injuries you have caused to others. Even if you are in the wrong, your vehicle still needs to be repaired. Comprehensive insurance cover will indemnify the losses to both your vehicle and the car you were involved in a accident with.  Furthermore, it will be providing cover against perils such as theft, hail amongst many more. It also comes with optional benefits including courtesy vehicle provision, emergency roadside assistance and top up cover (To learn more about shortfall cover follow this link – https://ayobainsurance.co.za/uncategorized/what-is-top-up-credit-shortfall-cover/ )

For a quote please contact Ayoba Insurance Brokers on +27 11 395 1631 or email info@ayobainsurance.co.za

Alternatively, you can follow the link https://ayobainsurance.co.za/

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

The father of American literature, Samuel Langhorne Clemens better known by his pen name Mark Twain, once wrote “If you tell the truth you don’t have to have a good memory”. This encouraging piece of wisdom sought to promote honesty and instil integrity amongst the human race. For what would we be if we abandon arguably the most fundamental of principles of humanity, honesty?

It is no surprise that almost all other principles of humanity are somehow linked or based on honesty. It is the one principle that cuts across all ethnicities. Contracts are no exception either. Most importantly the insurance contract.  One of the main insurance principles is uberrima fides. This is a Latin phrase meaning “utmost good faith”. It is the name of a legal doctrine which governs insurance contracts. This means that all parties to an insurance contract must deal in good faith, making a full declaration of all material facts in the insurance proposal.

Without utmost good faith between the parties to the insurance agreement, the contract may be rendered void ab initio. The term void ab initio, which means “to be treated as invalid from the outset,” comes from adding the Latin phrase ab initio (from the beginning) to the term void as a qualifier.

The insurance contract places an obligation upon the insured (client) to disclose all information which may have an impact on the determination of the insurance policy. A misrepresentation of these facts means that one would have violated the uberrima fides principle and is sufficient grounds for the insurer to reject a claim or render the policy void ab initio. This is because the material information is used by the insurer to price your insurance or determine if they are interested in taking up your insurance. For example, some insurers may not be interested in insuring vehicles used for e-hailing services. Thereby when taking up a policy with that insurer and you state that you do not use the vehicle for e-hailing but go on to use it for that, the insurer may reject any claim you have.

Facts in an insurance contract can be classified into either material or immaterial facts. The word ‘material‘ means ‘relevant’ or ‘pertinent’, so it is about what is relevant to the insurance contract. What is in question is whether the insurer would have assigned a different risk level to your coverage had the insurer known pertinent information. Misrepresenting or withholding material facts is a violation of the contract. This thereby means that you must disclose any information a reasonable person will deem material, even if the insurer has not explicitly asked you. For example, if you are visually impaired and prohibited from driving at night as per your driver’s license.

Immaterial facts are not necessary or essential to the contract of insurance. For example, the colour of your eyes.

It is imperative that we are honest to avoid any complications to our insurance coverage and eliminate fraudulent conduct. In all honesty, honesty is it all.

For a quote please contact Ayoba Insurance Brokers on +27 11 395 1631 or email info@ayobainsurance.co.za

Alternatively, you can leave your details here https://ayobainsurance.co.za/detailed-quote/ and we will contact you for a quote.

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

Being involved in a motor vehicle accident is bad, but even worse when you do not know what to do. Here is our step-by-step guide to what to do if you are involved in an accident.

What to do immediately after the accident

1. Stop, and turn on your hazard lights – you can be prosecuted if you leave the accident scene without stopping.
2. Make sure everyone is safe. Do not move anybody who is injured unless it is dangerous to leave them where they are.
3. Call the police immediately if anyone is seriously injured or you suspect the other driver is under the influence of alcohol (or guilty of another criminal offence).

If the vehicle is drivable …

If the accident was minor, such as a bumper-bashing incident, and the vehicle is drivable:

1. Take photos of the accident scene, including pictures of the other vehicles and their registration numbers (if possible)
2. Then move the vehicle out of the traffic, but only if nobody was injured and you are sure the other driver is sober

If the vehicle is not drivable …

If the vehicle is not drivable, or there are injured people inside, leave it where it is and:

1. Keep the hazard lights on
2. Display your triangle to warn other traffic
3. Take photos of the accident scene, including of the other vehicle(s) and their registration number(s), if possible
4. Call your roadside-assistance provider

Get all the details

Make sure you obtain, and record particulars of the accident and other parties involved in the accident. These include:

1. Where and when the accident happened
2. Names and details of the driver(s) of the other vehicle(s)
3. Details of the vehicles involved

Do not enter into any discussions about payment or responsibility for the accident, whatever the circumstances.

Report it …

File an accident report at your nearest police station within the first working day after the accident, or within 24 hours if anyone was injured.

You must report the accident, even if the other party said they would report it.

Note that even if there are no injuries or major damage to vehicles, any incident that involves public property (such as a traffic sign) must be reported to the police.

The claims process:

1. Notify Ayoba Insurance Brokers of the accident as soon as possible (you have 30 days to do this).
2. We will evaluate and process your claim, using the information you gathered and provided:

• If the other driver is insured and caused the incident, you have the option to lodge a claim with your insurer or with the other driver’s insurer.
• Even if you decide to claim against the other driver’s insurance, you must still notify your broker of the accident
• If you are insured against the risk and the other driver is found to be the more negligent party, your broker will try to recover damages from them (including the excess – the uninsured portion of a claim payable by a policyholder, regardless of who caused the accident). This is usually more successful if the other party is insured.

3. Once your claim has been registered with your broker, you will be kept up to date with its progress.

Bear in mind …

1. If you have a breakdown, run out of petrol, or need a tyre change, you need to call your accident-assistance service. Your insurer will only pay the full towing cost if you use their authorised provider. If you are unsure, call your Ayoba Insurance Brokers first to check.
2. You must file an accident report with the police within 24 hours. This is important, as you will need a reference number from the police to lodge your insurance claim.

For a quote please contact Ayoba Insurance Brokers on +27 11 395 1631 or email info@ayobainsurance.co.za

Alternatively, you can follow the link https://ayobainsurance.co.za/detailed-quote/

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

There is a misperception amongst many that you pay more for your insurance when you purchase insurance through a broker than when you buy it directly from the insurer, yet often, the inverse is true.

Yes, it is true that you will contribute towards the broker’s commission and be charged a broker fee but that does not mean your total premium will be more than what you would pay if you insured directly with an insurance company. It is this and other muddles about insurance that have led to more weeping at claims stage in South Africa than that which was experienced by Kaizer Chiefs Football Club supporters on Saturday 5^th September 2020.

Is it not rather ironic that when one feels sick, they visit medical specialists, when investing they pay the stockbroker a visit but when it comes to insurance, they suddenly become an expert? Without much or any consultation, many people purchase insurance. That is not a problem, the biggest problem is the majority of these do not have a thorough understanding of what they are buying. It is mostly at claims stage that some come to truly learn of the contract they signed. Talk of too little too late. It is only then that you start hearing of the old “crooks” “liars” name-calling phenomenon against the insurance industry.  There is a host of complaint mechanism formulated by legislature when a client feels hard done but none exonerates you from the duty of making sure you know what you are getting into yourself into.

There will be instances where there is a need to be satisfied but one is not exactly show how to go about it. You do not need to be a pilot to travel from Johannesburg to Durban by plane, and it is true that you do not need to be an insurance “fundi” to have the right insurance cover. Pilots and insurance brokers exist to ensure the aforesaid is rendered true.

Simply put, Insurance Brokers act as intermediaries between insurance companies and individuals or corporate clients. The broker has a duty to ensure the client’s interests are upheld. As the expert, they must suggest,

As an intermediary, Ayoba Insurance brokers sets the following as their core duties/roles

• Evaluate your risk exposure and structure/tailor your insurance cover/s according to the anticipated risks and ensure proper and professional transfer of such risks “worries” to the Insurance Company.
• Ensure you understand what is insured and what is not insured under your insurance policy/cover before you pay for the policy
• An Insurance broker has a wide knowledge of Insurance products/industry, and will select for you the most ideal Insurance policy/package and the insurance company to underwrite the policy/cover
• An Insurance broker can spread/share your risk among many insurance companies especially when your risk is big, in order to avoid concentrating the risk with one insurance company for proper risk mitigation.
• An insurance broker will advise you on the most suited insurance company to underwrite your risk in terms of underwriting capacity and appetite for that kind of risk.
• An insurance broker will therefore negotiate for comprehensive policies with wide coverage and extensions at very competitive insurance rates/premiums.
• An Insurance broker will assist you to procure insurance quotations from various insurance companies for tender purposes and analyse such quotations to ensure you make informed decisions when choosing your covers and insurer.
• An Insurance Broker will guide you through Insurance claims requirements and procedures to ensure your loss/damage/injury/ and or death claims are not only promptly paid but paid to your satisfaction.

One can note from the above how imperative it is to purchase insurance through Ayoba insurance broker.

For a quote please contact Ayoba Insurance Brokers on +27 11 395 1631 or email info@ayobainsurance.co.za

Alternatively, you can follow the link https://ayobainsurance.co.za/

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

Insurance practice cannot go against public policy! All insurance contracts will state this in one way or the other. Simply put, this means that as a legal contract, an insurance policy is exempted from indemnifying an insured where illegal activities have been involved. This follows the common law doctrine of Exturpi causa Ex turpi causa non oritur actio (Latin “from a dishonourable cause an action does not arise”). The doctrine states that a plaintiff will be unable to pursue legal relief and damages if it arises in connection with their own tortious act.

As an example, If Adam is a passenger in a stolen car which he knows is stolen and still freely participates in it then, if this car crashes and he gets injured, he cannot get damages from the driver of the car because Adam was also involved in the criminal act and therefore no action can arise here by the operation of ex turpi causa non oritur actio.

We notice here that not all risks automatically become uninsurable. One may take out insurance against them without fully disclosing the required information to the insurer but at claims stage the insurer reserves the right to decline indemnification. For example, an insurer can offer cover for a retailer’s stock but if it is later concluded that the retailer was stealing the stock elsewhere for resell at his shop, an insurer can reject your claim for the stock after it is destroyed in a fire.

The tricky thing about public policy is that it is susceptible to alterations and modifications. A practice can be legal today and illegal tomorrow, vice versa, as we saw with the use of cannabis.

So, what if one day we wake up and it has become against public policy to drive at certain times except under strict expressly specified circumstances?

The government of the Republic of South Africa has for almost a year had a nationwide curfew in place with alterations from time to time in an effort to curb the spread of the dreaded coronavirus. The question amongst many has been, “will an insurer pay out especially a motor vehicle loss which occurred after curfew time whilst away from the insured’s residence without meeting the necessary requirements to be on the road at that juncture?”

The response to this question by many insurers has been, “Claims arising from incidents happening between hours deemed in curfew will not automatically be rejected. Each claim’s circumstances will be reviewed on its merits.” This has been met by mixed reactions from the clients with some saying they should not be penalized for their “negligence”. It is important to note that insurance is meant to cover normal negligence (not gross negligence). However, this is not negligence, currently, driving outside curfew hours without meeting the necessary requirements to do so is a criminal offence. It is the same as driving at 200km/hr in an 80km/hr zone.

It is our recommendation that all those with insurance avoid driving outside curfew hours without meeting the necessary requirements as insurers may decline their claims. A special emphasis on “may”. Though the insurance policies might not expressly mention this act as an exclusion they still reserve the right to reject cover based on illegality.

My question to you is, “if they may reject your claim, why risk it?”. If there is no pressing reason for us to be out let us avoid it. Not only are we being law abiding citizens, but we are actively being involved in the fight against this coronavirus. More importantly, we are protecting ourselves and our loved ones.

For the specific current curfew and other lockdown rules you may visit the government website at https://www.gov.za/

For a quote please contact Ayoba Insurance Brokers on +27 11 395 1631 or email info@ayobainsurance.co.za

Alternatively, you can follow the link https://ayobainsurance.co.za/

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

For a quote please contact Ayoba Insurance Brokers on +27 11 395 1631, email nick@ayobainsurance.co.za or natalie@ayobainsurance.co.za

Alternatively, you can follow the link http://ayobainsurance.co.za/detailed-quote/

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

In an awful year characterized by a dreaded pandemic and “irregardless” officially being recognized as a word (sigh!!!!), the unpleasant truth is this year could still get worse for you. The festive season is fast approaching and as cheerful and merry as it gets, this is a season that has claimed many lives mainly due to road and other accidents.

Though Ayoba Insurance Brokers will ensure you are compensated for the damaged cars within the policy specification, unfortunately we cannot restore life. We cannot provide orphaned children with their beloved Mommy and/or daddy. We cannot bring a deceased spouse back to the living.  It is thus imperative that we all practice caution and safety during the festive season so that the worst year does not become even more worse. Drink responsibly and Drive safely, but it is safer and more responsible to not drive at all after drinking, regardless (correct word) how much you have had, be it even half a glass of wine.

Trends have shown that this is also the time when house breaking crimes tend to increase markedly in our country. Research by the South African Police Services (SAPS) shows that most of these crimes are opportunistic. In the case of house burglaries, the opportunity is greater when people are away on holidays, visiting family or have gone out as they tend to do during this period.

If you have houseowners (for your house/domestic building) or householder’s (your furniture in the house) insurance, Ayoba insurance brokers will within the policy specifications indemnify you for the lost and damaged property. However, part of that property may be your grandmother’s wedding band which has been in the family for four generations. The sentimental value attached to this cannot be monetarized. We encourage you to practice due diligence in safeguarding your possessions. Ensure all security systems are updated and upgraded. If you lose or misplace a key/lock, it is safer to replace the entire lock system. Notify your alarm company if you are going away and at least ask your most trusted relative/friend to house sit for you while you are away. If within your means, you may even hire a security company to provide a guard to watch your place in your absence.

Be safe, take good care of yourselves and happy holidays!

For a quote please contact Ayoba Insurance Brokers on +27 11 395 1631, email nick@ayobainsurance.co.za or natalie@ayobainsurance.co.za

Alternatively, you can follow the link http://ayobainsurance.co.za/detailed-quote/

The information and content contained herein do not constitute a recommendation or solicitation to purchase or sell any financial product or service or arrive at a financial decision, nor do the contents of this publication constitute any form of advice or guidance.

Simply put, Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for a payment in monetary terms.

An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.

The company or person who buys insurance is called an insured.

The monetary consideration paid by the insured to the insurer is called a premium. It can be paid once off, monthly, annually depending on the agreement between the insurer and the insurer.

Insurance can be subdivided into two main categories, short-term insurance (provides cover for your belongings, such as your house and car including liabilities that may arise from the ownership/use of these) and long-term insurance pays out when you or your loved one dies or falls sick). A short-term insurance policy offers the insured indemnity. Indemnity is to put the insured back in the same financial position after loss or damage occurred in that the insured was immediately before such loss or damage occurred. Long-term insurance will not restore you to the position you were in prior to a loss (for example the insurer cannot resurrect your deceased beloved) but will pay out a “sorry for what happened” amount of money. This thereby means that each type of cover sought can be easily categorized. The following are some examples of what is insurable where.

INSURABLE UNDER SHORT-TERM INSURANCE

• Vehicle
• House/Building
• Household Contents
• Portable Goods / All Risk Items, for example, cell phones, jewellery, laptops
• Personal and Public Legal liability
• Commercial/Business Insurance

INSURABLE UNDER LONG-TERM INSURANCE

• Life Assurance
• Medical Aid
• Funeral Assurance
• Investments
• Pension/Retirement Schemes

For a quote, contact us on +27 11 395 1631 or email us at nick@ayobainsurance.co.za / natalie@ayobainsurance.co.za

Alternatively, you can follow the link http://ayobainsurance.co.za/detailed-quote/

Here is a compiled article of Frequently Asked Questions courtesy of Alexander Forbes.

FAQ 1: WHY IS THE PREMIUM INCREASE ON MY CONTENTS AND BUILDINGS PREMIUM SO MUCH HIGHER THAN ON VEHICLES?

The premium for contents and buildings are based on two components.

COMPONENT 1 – SUM INSURED

The first component of the premium is based on the Sum Insured value of the contents or buildings that are increased every year on the renewal of the policy.
Why are the Contents and Buildings Sum Insured values increased?
Buildings:
The Sum Insured is the amount of money that the home is covered for and is the most AFI will pay if the client’s home totally destroyed. It is also the amount it would cost to rebuild the home although that’s not the same as the home’s market value, which could be greater or less.
As building costs escalate every year, it is important to adjust the Sum Insured with the increase in building costs so that the client remains fully covered. Building costs consist of contractor tender prices as well as building input costs. Alexander Forbes Insurance looks to the Bureau of Economic Research building costs indices to ensure that appropriate increases are applied to buildings which reflect the escalation in building cost.
Another factor that should be taken into account is that rebuilding of a home is not immediate and may take anything from a few months up to a year. Over the period of rebuilding costs can be expected to continue to escalate, i.e. labour and material costs may be more expensive in 6 months time than they are now. This is taken into account in the % increase that is applied to the Sum Insured.
To help to prevent your sum insured from falling behind, we automatically increase it at renewal but despite this precaution, many of our client’s values remain too low. Please review your sum insured carefully. If you need professional assistance I can put you in touch with a valuator.
Contents:
The client is covered for the cost of replacing the contents up to the Sum Insured. As items get more expensive over time, the Sum Insured will become inadequate to cover the replacement cost of the item. To help to prevent the client’s sum insured from falling behind, we automatically increase at renewal but despite this precaution, many of our client’s values remain too low. Please ensure that the client’s sum insured is reviewed carefully, a valuator should be consulted if necessary.

COMPONENT 2 – INSURER ADMINISTRATION COSTS

The second part of the increase in the Buildings and Contents premium is due to escalating costs within AFI itself. The biggest cost here is the salaries of the people that work at AFI.
There is also IT costs, rental and general overheads. The inflationary increase allocated in this respect is hence the best estimate of the actual cost escalation in the business over the past year and may hence be higher than the current inflation in the economy.

FAQ 2: WHY IS MY VEHICLE PREMIUM INCREASING IF THE VALUE OF MY VEHICLE IS DEPRECIATING?

Again inflation is responsible as the cost of towing, repairing and car hire will increase over time. The cost of repairs is split between labour, paint and parts. If vehicles are within warranty AFI needs to fit Original Equipment Manufacturers (“OEM”) parts which are imported in many cases. When parts are imported the exchange rate also plays a role. If parts are imported at a time when the Rand is very weak relative to major currencies such as the Dollar or Euro, the part is more expensive in Rand terms. The increase in the price of the part is then passed to the panel beater who purchases the parts and who in turn passes the increase to insurers who pay for repairs. This is why it is encouraged to fit alternative parts which are much cheaper but of the same quality as original OEM parts. It should be noted that alternative parts although cheaper than OEM parts also escalate with inflation over time and pricing will also have to allow for this.
There is also the fact that costs are escalating within AFI such as salaries and other overheads. Another reason is that when the vehicle value is reduced, it becomes more likely that repairs would exceed the percentage of the sum insured that triggers a write-off.

FAQ 3: THE EXCHANGE RATE HAS BEEN STABLE OVER THE PAST 6 MONTHS, WHY ARE YOU USING IT AS AN EXCUSE FOR HIGHER PARTS PRICES?

It depends on how much stocked parts a repairer or vehicle manufacturer has. There is generally a lag on inflation as manufacturers or repairers may have existing stock during the time of high inflation to afford not to pass the increase to their customers. However, any new stock that they buy will be more expensive and these increases will be passed onto insurers later on when existing stock has been depleted. That is why parts may still be very expensive even if the exchange rate is going through a relatively stable period.

Article courtesy of Alexander Forbes.

For a quote, contact us on +27 11 395 1631 or email us at nick@ayobainsurance.co.za / natalie@ayobainsurance.co.za

Alternatively, you can follow the link http://ayobainsurance.co.za/detailed-quote/

Some say the only certainties are death and taxes. Nothing else can hold the same level of probability. This, however, does not mean everything else holds the same probability as the sun rising from the north!

There is always a chance of those other elements like sickness, Liverpool winning the English premier league one day and so forth though the likelihood of each of these happening varies from low to high. It is a great tragedy that often, most are caught unaware when these events happen, including death itself which as we mentioned is inevitable.

It is such a good thing to see people starting to appreciate the importance of having one’s possessions secure and protected. Inventions such as the electric fence keep out potential intruders, cautious driving reduces susceptibility to an accident, exercise reduces the chances of suffering a heart attack and so on. It is good that we can control all that is within our means, but what of those dangers that are not within our control? We can only predict their severity but cannot ascertain with exactness the extent of damage they will cause.

An Act of God (Vis Major/force majeure) is defined as a violent and catastrophic event caused by forces of nature, which could not have been prevented or avoided by foresight or prudence. Examples include hurricanes, tornadoes, floods and earthquakes. The probability of any viz major occurring depends largely on the geographical location, thereby leaving every area at risk of experiencing one. The SADC region and world at large mourn the lives lost and property destroyed recently by Cyclone Idai. As of 24th March 2019, the death toll was said to be at least 700 (excluding unaccounted for victims) and the infrastructural damage at least hundreds of millions of Rands.

Though Viz majors cannot be prevented, their financial impact can be lightened. Think of the orphans, homeless families, destroyed transportation network systems. Financial services players have joined arms and offered some form of relief and/or solace in the unfortunate event that these occur.

Insurers have designed products that will ensure one’s family is catered for in the unfortunate event of them passing on. These include life assurance policies that will pay out a lump sum to your dependents when you pass on to ensure they pay off any debts, continue with life and finish off their schooling and so forth. Though the money will not replace you, it certainly does assist the family with facing life without you. Medical aid schemes are there to cover you when you are sick/ill or injured. Funeral assurance will assist in the costs associated with the funeral arrangements after your beloved die.

Housing is a basic human right. Imagine what you would do after completing paying off the twenty-year-old bond only to lose the house to a flood, earthquake or cyclone. Insurance companies will indemnify you that is to be restored back to the same position one was in prior to a loss, under their various products in the event of such a tragedy happen. This extends to include all your other material possessions despite how big or small from luxurious cars to silverware.

The further relieving news are insurers will not only provide a remedy when viz majors occur but other unfortunate unforeseen events ranging from accidents, acts of other people, malicious damages and a host of others depending on the product sought. Furthermore, though insurance is a post-loss mechanism, underwriters will help identify the risk you are exposed to and aid you with some technics and advice on how to minimize the chances or impact of a loss.

For a quote, contact us on +27 11 395 1631 or email us at nick@ayobainsurance.co.za / natalie@ayobainsurance.co.za

Alternatively, you can follow the link http://ayobainsurance.co.za/detailed-quote/

Here is a compiled article of Frequently Asked Questions courtesy of Alexander Forbes.

FAQ 1: WHY IS THE PREMIUM INCREASE ON MY CONTENTS AND BUILDINGS PREMIUM SO MUCH HIGHER THAN ON VEHICLES?

The premium for contents and buildings are based on two components.

COMPONENT 1 – SUM INSURED

The first component of the premium is based on the Sum Insured value of the contents or buildings that are increased every year on the renewal of the policy.
Why are the Contents and Buildings Sum Insured values increased?
Buildings:
The Sum Insured is the amount of money that the home is covered for and is the most AFI will pay if the client’s home totally destroyed. It is also the amount it would cost to rebuild the home although that’s not the same as the home’s market value, which could be greater or less.
As building costs escalate every year, it is important to adjust the Sum Insured with the increase in building costs so that the client remains fully covered. Building costs consist of contractor tender prices as well as building input costs. Alexander Forbes Insurance looks to the Bureau of Economic Research building costs indices to ensure that appropriate increases are applied to buildings which reflect the escalation in building cost.
Another factor that should be taken into account is that rebuilding of a home is not immediate and may take anything from a few months up to a year. Over the period of rebuilding costs can be expected to continue to escalate, i.e. labour and material costs may be more expensive in 6 months time than they are now. This is taken into account in the % increase that is applied to the Sum Insured.
To help to prevent your sum insured from falling behind, we automatically increase it at renewal but despite this precaution, many of our client’s values remain too low. Please review your sum insured carefully. If you need professional assistance I can put you in touch with a valuator.
Contents:
The client is covered for the cost of replacing the contents up to the Sum Insured. As items get more expensive over time, the Sum Insured will become inadequate to cover the replacement cost of the item. To help to prevent the client’s sum insured from falling behind, we automatically increase at renewal but despite this precaution, many of our client’s values remain too low. Please ensure that the client’s sum insured is reviewed carefully, a valuator should be consulted if necessary.

COMPONENT 2 – INSURER ADMINISTRATION COSTS

The second part of the increase in the Buildings and Contents premium is due to escalating costs within AFI itself. The biggest cost here is the salaries of the people that work at AFI.
There is also IT costs, rental and general overheads. The inflationary increase allocated in this respect is hence the best estimate of the actual cost escalation in the business over the past year and may hence be higher than the current inflation in the economy.

FAQ 2: WHY IS MY VEHICLE PREMIUM INCREASING IF THE VALUE OF MY VEHICLE IS DEPRECIATING?

Again inflation is responsible as the cost of towing, repairing and car hire will increase over time. The cost of repairs is split between labour, paint and parts. If vehicles are within warranty AFI needs to fit Original Equipment Manufacturers (“OEM”) parts which are imported in many cases. When parts are imported the exchange rate also plays a role. If parts are imported at a time when the Rand is very weak relative to major currencies such as the Dollar or Euro, the part is more expensive in Rand terms. The increase in the price of the part is then passed to the panel beater who purchases the parts and who in turn passes the increase to insurers who pay for repairs. This is why it is encouraged to fit alternative parts which are much cheaper but of the same quality as original OEM parts. It should be noted that alternative parts although cheaper than OEM parts also escalate with inflation over time and pricing will also have to allow for this.
There is also the fact that costs are escalating within AFI such as salaries and other overheads. Another reason is that when the vehicle value is reduced, it becomes more likely that repairs would exceed the percentage of the sum insured that triggers a write-off.

FAQ 3: THE EXCHANGE RATE HAS BEEN STABLE OVER THE PAST 6 MONTHS, WHY ARE YOU USING IT AS AN EXCUSE FOR HIGHER PARTS PRICES?

It depends on how much stocked parts a repairer or vehicle manufacturer has. There is generally a lag on inflation as manufacturers or repairers may have existing stock during the time of high inflation to afford not to pass the increase to their customers. However, any new stock that they buy will be more expensive and these increases will be passed onto insurers later on when existing stock has been depleted. That is why parts may still be very expensive even if the exchange rate is going through a relatively stable period.

Article courtesy of Alexander Forbes.

For a quote, contact us on +27 11 395 1631 or email us at nick@ayobainsurance.co.za / natalie@ayobainsurance.co.za

Alternatively, you can follow the link http://ayobainsurance.co.za/detailed-quote/

Some say the only certainties are death and taxes. Nothing else can hold the same level of probability. This, however, does not mean everything else holds the same probability as the sun rising from the north!

There is always a chance of those other elements like sickness, Liverpool winning the English premier league one day and so forth though the likelihood of each of these happening varies from low to high. It is a great tragedy that often, most are caught unaware when these events happen, including death itself which as we mentioned is inevitable.

It is such a good thing to see people starting to appreciate the importance of having one’s possessions secure and protected. Inventions such as the electric fence keep out potential intruders, cautious driving reduces susceptibility to an accident, exercise reduces the chances of suffering a heart attack and so on. It is good that we can control all that is within our means, but what of those dangers that are not within our control? We can only predict their severity but cannot ascertain with exactness the extent of damage they will cause.

An Act of God (Vis Major/force majeure) is defined as a violent and catastrophic event caused by forces of nature, which could not have been prevented or avoided by foresight or prudence. Examples include hurricanes, tornadoes, floods and earthquakes. The probability of any viz major occurring depends largely on the geographical location, thereby leaving every area at risk of experiencing one. The SADC region and world at large mourn the lives lost and property destroyed recently by Cyclone Idai. As of 24th March 2019, the death toll was said to be at least 700 (excluding unaccounted for victims) and the infrastructural damage at least hundreds of millions of Rands.

Though Viz majors cannot be prevented, their financial impact can be lightened. Think of the orphans, homeless families, destroyed transportation network systems. Financial services players have joined arms and offered some form of relief and/or solace in the unfortunate event that these occur.

Insurers have designed products that will ensure one’s family is catered for in the unfortunate event of them passing on. These include life assurance policies that will pay out a lump sum to your dependents when you pass on to ensure they pay off any debts, continue with life and finish off their schooling and so forth. Though the money will not replace you, it certainly does assist the family with facing life without you. Medical aid schemes are there to cover you when you are sick/ill or injured. Funeral assurance will assist in the costs associated with the funeral arrangements after your beloved die.

Housing is a basic human right. Imagine what you would do after completing paying off the twenty-year-old bond only to lose the house to a flood, earthquake or cyclone. Insurance companies will indemnify you that is to be restored back to the same position one was in prior to a loss, under their various products in the event of such a tragedy happen. This extends to include all your other material possessions despite how big or small from luxurious cars to silverware.

The further relieving news are insurers will not only provide a remedy when viz majors occur but other unfortunate unforeseen events ranging from accidents, acts of other people, malicious damages and a host of others depending on the product sought. Furthermore, though insurance is a post-loss mechanism, underwriters will help identify the risk you are exposed to and aid you with some technics and advice on how to minimize the chances or impact of a loss.

For a quote, contact us on +27 11 395 1631 or email us at nick@ayobainsurance.co.za / natalie@ayobainsurance.co.za

Alternatively, you can follow the link http://ayobainsurance.co.za/detailed-quote/