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Standard Insurance Limited (SIL) Commercial Vehicle ... Flipbook PDF
Standard Insurance Limited (SIL) Commercial Vehicle Shortfall Product Brief description Shortfall Cover provides cover w
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Standard Insurance Limited (SIL) Commercial Vehicle Shortfall Product Brief description Shortfall Cover provides cover where a shortfall arises between the lump sum payment from the Underlying Insurer and the statutory balance in terms of the relevant Credit Agreement; following the vehicle being stolen and not recovered or damaged beyond repair and written off by the Underlying Insurer who has settled the claim in terms of the Underlying Insurance Policy. Target Market Any motor vehicle used for commercial purposes, including sedans, utility vehicles, trucks, buses (designed to seat more than 16 (sixteen) passengers), trailers (any vehicle without means of self propulsion) with a carrying capacity exceeding 750 kg (seven hundred and fifty kilograms), agricultural and construction vehicles; excluding, taxis, rental and or vehicles used for demonstration purposes. Important : Any goods carrying vehicle and normal passenger vehicles where it is being used for commercial purposes. Benefits The benefits to the customer are:
Credit Shortfall cover protects customers against financial loss due to theft or total write off, where the difference between the payout from the comprehensive policy is less than the outstanding loan amount owing to Vehicle and Asset Finance; (Also refer to Credit Shortfall Section below)
Policy benefits Maximum cover Excess benefit Deposit benefit Inconvenience benefit
Limits R1 million Up to R10 000 Up to R100 000 R3 000
Deposit Benefit (only when no shortfall loss has been incurred) Where The Vehicle is stolen and not recovered or damaged beyond repair and is written off by the Underlying Insurer who has settled Your claim in terms of the Underlying Policy by means of a lump sum payment and no shortfall arises between such payment and the Statutory Settlement Balance in terms of the relevant Credit Agreement, We will pay to You an amount equivalent to 10% of the; Underlying Insurer’s net settlement amount, up to a maximum of R 100 000 (one hundred thousand rand). Inconvenience Benefit Should The Vehicle be subject to a valid claim in terms of this policy, We will pay You an additional amount of R 3 000 (three thousand rand). Note: Top Up does not replace the existing comprehensive insurance and does not function as a comprehensive insurance policy. There must be a comprehensive policy in place before Top Up insurance can be taken out. Why is Top Up necessary? Comprehensive insurance is calculated on the market value of a vehicle, which depreciates each year and also drops radically when a new vehicle becomes used. The customer's loan with vehicle and asset finance includes finance charges and remains unaffected by depreciation and market values. The loan, therefore, can exceed the insured value of a vehicle by many thousands of Rands. This means that the customer would have to pay the difference between the insurance payout and their vehicle and asset finance loan, leaving no cash to replace the lost vehicle or to pay a deposit. What vehicle does this policy cover? In addition to medium and large goods carrying vehicles (like trucks, busses, designed to seat more than 16 passengers, trailers which are any vehicle without means of self-propulsion, with a carrying capacity exceeding 750kg, agricultural and construction vehicles), any motor vehicle used for commercial purposes, including sedans, utility vehicles, but excluding taxis, rental and or vehicles used for demonstration purposes will be offered cover with the new product. Any goods carrying vehicle to normal passenger vehicles where been used for commercial purposes. Exclusions Please note that Top-Up does not apply to:
Taxi’s Rental Vehicles - Vehicles hired out or used as a taxi or to carry passengers, for reward Vehicles used for demonstration purposes
What is a credit shortfall Where The Vehicle is stolen and not recovered or damaged beyond repair and is written off by the Underlying Insurer who has settled the claim in terms of the Underlying Policy by means of a lump sum payment and a shortfall arises between such payment and the Statutory Settlement Balance in terms of the relevant Credit Agreement, the policy will pay: The Statutory Settlement Balance, less:
The amount by which the Excess exceeds R 10 000 (ten thousand Rand) The amount paid by the Underlying Insurer Any arrears instalments or rentals including interest payable on such arrears All refunds of premium for cancellation of any insurance cover relating to the motor vehicle The increased instalments or rentals that would have been paid had there been no residual capital value at the end of the finance period, calculated to the month in which the claim is settled provided always that: The amounts payable under this policy shall not exceed R 1 000 000 (one million Rand). This insurance shall not apply to a Credit Agreement whereby the amount of any single instalment other than the final balloon amount after the initial payment differs by more than 10 percent from any other instalment. If such shortfall is as a result of a re-advance under an instalment sale or refinancing in terms of a lease the insurance by this policy shall be void.
The settlement paid or payable to the customer by the Underlying Insurer in terms of the Underlying Policy shall be deemed never to be less than the Market Value of The Vehicle. For queries contact Standard Bank Insurance Brokers Call Centre on 0860 123 222. Payment Option The monthly shortfall cover premium is bolted onto the customer's vehicle and asset finance monthly debit order. Claims and Queries Claims will be handled by Standard Insurance Limited (SIL) and any queries can be directed to: 0860 123 222 VAF Insurance Department ([email protected]) will submit a claim on behalf of the customer to Standard Insurance Limited once the Underlying Policy has settled the comprehensive insurance claim.