This month we are sharing some of our clients’ real life short-term insurance claim stories, to illustrate the situations in which your insurance policies will prove beneficial.
One of our clients, Mr X age 34, submitted three short-term insurance claims over the past few months for separate incidents:
- Car insurance: third party claim
Mr X was driving on the N1 on his way to work, when another vehicle suddenly crashed into his car on the rear side while changing lanes. Both vehicles were forced off the road. Upon exiting the vehicles, it became apparent that the other vehicle’s driver became unconscious while driving his work vehicle due to medical reasons. Luckily the damage was not too severe and both parties were unharmed, however Mr X’s vehicle was scratched and dented on the entire left side.
He submitted the claim to Discovery and generally would be responsible for an excess payment of R3 000, but in this case the third party was responsible for the excess since the accident was his fault. However, the third-party driver’s company denied their employee’s accountability to avoid a pay-out by their insurance company. In this instance, Discovery Insure continued to pay out Mr X’s claim without seeking the excess payment from Mr X, while their legal department continued to resolve the issue with the third party.
Claim pay-out: Amount was not disclosed as it was a 3rd party claim
Discovery car insurance monthly premium: R769.16
- Contents insurance claim
A few months later, Mr X’s washing machine broke down due to continuous loadshedding which damaged the machine’s PC board. Discovery approved the claim, but Mr X was liable for an excess of R2 250 for any loadshedding-related claims. Recently, all insurers have implemented a mandatory additional excess for loadshedding related claims due to Insurance Legislation regarding total grid failure.
Claim pay-out: R6 459
Excess: R2 250
Discovery contents insurance monthly premium: R334.83
- Building insurance claim
Soon after, a section of Mr X’s swimming pool crumbled due to heavy rains. The concrete enclosure which contains the skimmer box gave away which could cause severe damage to the rest of the pool. Remember that swimming pools form part of your building insurance cover, and that relevant related incidents can be claimed for from this policy. Discovery approved the claim in order for the enclosure to be repaired.
Excess: R1 500
Claim pay-out: R4 501
Discovery building insurance monthly premium: R479.18
Mr X’s three claims clearly illustrate that accidents are bound to happen, and that unfortunately there is no limit to how many incidents each of us are awarded in a lifetime.
We also include Mr Y’s story which is quite relevant to most individuals with children:
- Personal all risk insurance claim
Mr Y’s prescription reading glasses was specified in his personal all risk insurance policy. While at home, his baby broke the one arm of the glasses rendering them unusable.
Excess: R750
Claim pay-out: R3 500
Discovery personal all risk insurance monthly premium: R37.53
This story serves as a reminder that any relevant accidents that happen to related all risk insured items can be claimed for from your policy. It is important to insure specific items such as cellphones, laptops, jewellery etc. as ‘all risk’ to ensure that your insurance will pay out claims if these items are stolen outside of your home. It is also crucial to note that even if your laptop is insured under ‘all risk’ and it is stolen at home as a result of a break in, the claim will fall under your contents insurance.
Tips to bear in mind when it comes to short-term insurance claims:
- When travelling with your laptop in your car, always hide it in your boot or under the car seat when you park somewhere to ensure the laptop is not visible from the outside of the vehicle. Your insurer will repudiate the claim if you failed to take steps to keep your laptop safe.
- Keep the original receipts for electronics and other expensive items that are insured; this will fast track your insurance claim if anything is stolen and will avoid delays in determining the value of stolen items.