EXCESS OF LOSS FIRE COVER
- Does the Insured have to buy the higher limit if they elect to buy Sasria MD cover and the total sum insured exceeds R500 million?
No, the Insured does not have to buy more than R500 million if they do not wish to. The cover is not compulsory, however same it be required
- Can the Insured buy MD cover in excess of R500 million from the alternative Riot Wrap Around markets instead if we wish to?
No, if the Insured wishes to increase the MD limit for Sasria perils above R500 million, the cover must be placed with Sasria up to R1,5bn. The Riot Wrap market is available above the R1,5bn.
- What happens iro Riot Wrap Around cover already in place until sometime in 2010?
Such cover remains in the Riot Wrap Around policy until renewal date in 2010.
- Does the Excess of Loss cover include Standing Charges? What about Net Profit and AICOW? (Presumably not but this needs to be made clear)
The Excess of Loss in excess of the primary limit of R500 million does include Standing Charges and or Working Expense, but it does not include Net Profit and BIT extensions.
- May the layer in excess of the Primary include Rent?
The Excess of Loss does include Rent, if the Insured elects to include it. The Regulations applicable to the Rent cover under the R500m Coupon also apply to the Excess of loss cover
- What if there is a claim of R750 million comprising MD of R250m and Standing Charges of R500 million and the Insured has purchased the primary limit of R500 million and the XOL layer of R1 billion xs R500 million? Can the full Standing Charges loss of R500 million be applied to the primary R500m coupon and the MD loss of R250m applied to the "XOL" layer?
The Coupon will respond to the claim as per the maximum limit of indemnity purchased, subject Sasria’s maximum loss limit of R1,5bn. Part of the claim will be paid under R500m coupon and the balance of the claim will be paid under the Excess of Loss coupon up to the limit purchased by the Insured.
- If the Insured wishes to buy Standing Charges in another market will Sasria continue to treat applications to do so in a favourable manner where total values exceed R500 million?
Yes, Sasria will continue to consider applications for dispensations to place BI cover ground up in a market other than Sasria subject to the full MD cover up to R1.250m being placed with Sasria. It should be noted that Sasria also provide cover for BI ground where the MD sum insured is above R500m.
- May each subsidiary of a One Insured purchase it's own limit of up to R1.5 billion (with reference to circular no. 449 of 17th July)?
If one subsidiary wishes to have it's own limit then all subsidiaries must have their own limit. It therefore has to be a Group decision as to whether all subsidiaries will share in the One Insured Limit or each has their own separate limit. If it is decided that each subsidiary is to have it's own limit then each subsidiary may decide for themselves whether they wish to purchase a limit greater than R500 million.
- Now that Sasria has decided to have excess of loss, how will the premium for the excess of loss be calculated? Will the discount be reduced?
The premium for the loss limit of R 500 million will still be calculated as it has been calculated and the magnitude discount will be applied to the sum insured, if the insured chooses to buy additional R 1 billion cover in excess of R500 million, then the premium for the Excess of Loss cover will be calculated separately using different rating structure.
- What happens if the sum insured is greater than the R 1,5 billion, How will I be paid in an event there is a claim?
The client has the option of buying the excess cover from the riot wrap market, in case of a claim Sasria will pay the maximum of R 1,5 billion.
- Then if I want to be covered for the full value, can I purchase riot wrap over and above the R 1,5 billion offered by Sasria?
Over and above the R 1,5 billion by Sasria you can purchase riot wrap, but you will need to request for dispensation from Sasria Limited
- Is there a separate wording for this cover?
The existing material damage wording applies to this cover and the wording will be amended to cater for this cover.
- How does one apply the magnitude discount to this cover?
The current magnitude discount structure does not apply to the Excess of Loss cover.
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- I have to insure a forklift, on the underlying policy it is insured on the motor section for Sasria do I follow the same?
Any vehicle which is not registered for road use, should be insured under the material damage section.
- The fire coupon, does it have to signed by Sasria and Agent company once issued?
When the coupon gets issued, the Agent company need to make sure that it is signed and the date when issued is visible, Sasria provides Agent companies with the Sasria MD’s signature and the director of the Agent need to sign on the provided space for the Agent.
- Where do we insure the agriculture crop and stock?
They can be insured under the Material Damage coupon.
- I have a client who insures trains, it my first time of insuring trains, do I insure them under the motor section as well?
The trains should be insured under the Material Damage section.
- If on the underlying policy, we have given extension for free, as Sasria follows the underlying policy the extensions will be covered automatically as well?
Sasria follows the underlying policy regarding the terms and conditions, exceptions but not the extensions, if you want the extensions to be covered they will need to be added on the main sum insured for them to be covered.
- We have included Inflation and Escalation on our policy, now do we calculate the premium for inflation and escalation for Sasria purposes?
If on the underlying policy you have charged a premium, Sasria will follow the underlying policy method, if the underlying policy have not charged a premium, then the Sasria method will need to be used.
- If on the underlying policy, I have an extension AICOW under the Electronic section, can I insure it as an extension on the material damage section as well?
The extension will need to insured under the BI as an AICOW the appropriate rate need to be applied, but you cannot issue Standing Charges/ working expenses only for AICOW, there must be a standing charges/ working expenses policy in place.
- I would like to whether the re-instatement value should be included on the calculation of magnitude discount?
The re-instatement value, should not at any point be included in the calculation of the magnitude discount.
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- If we have businesses which are paid both monthly and annually, on the annexure how do we submit the annexure?
The Agent should submit two annexures for both the monthly and annually.
- When do Sasria make refunds?
Sasria will make refunds when there is a cancellation of policy, reissue of underlying policy, change of insurer mid-term, change of interest, sum insured reduction and refund on declarations.
- We as UMA we charge a fee, does Sasria pay a fee?
Sasria pays a commission to Agents companies, they in turn pay their UMA’s and Brokers.
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- How do I insure the construction risk section for Sasria?
The construction can be insured either on an annual turn-over or on the estimated value.
- If a plant is insured under the plant all risks, can I insure it under the motor policy for Sasria purposes?
The only time you can insure a plant under the motor section, is when the plant is registered for road use.
- Does Sasria charge a deductible?
Only time Sasria charges a deductible, is under the construction risk for both the construction risk and plant all risk.
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- Can I insure the net profit under the business interruption section?
Under the current cover you can only insure the standing charges/ working expenses under the sc/we policy, the full business interruption (loss of profit) will be covered as of the 01 January 2010.
- Can I insure AICOW only under the sc/we policy?
You can add the AICOW as an extension and you must apply the 1,5% to base rate, but you cannot issue sc/we only for the purposes of insuring AICOW alone.
- How much does SASRIA REFUND?
Although premiums are collected upfront, but Sasria refund up to 25% of the premium at expiry period of the insurance.
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- If I want to insure escalation/ inflation can I include that on calculation of magnitude discount?
The inflation/ escaclation cannot be included on the calculation of the magnitude discount, but the resultant discount can be applied on the premium.
- Can I include co-insurance and voluntary deductible to increase my discount when I qualify for the magnitude discount?
Once you qualify for the magnitude discount you can only choose either of the two not both.
- Does the magnitude discount now also apply to the excess of loss?
The excess o f loss has it’s own structured discount and the magnitude discount does not apply to excess of loss.
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GROUP SCHEMES SECTION
- Can I Insure certain sections on the group scheme?
On the group scheme there are no selections, all the insured sections, should be insured on the group scheme.
- If one of my clients want to select, what can I do?
You will need to take that client out of the group scheme and issue them with their own coupon.
- What is the minimum number of people to be insured on a group scheme?
The minimum number to be insured on a group scheme should be 10.
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- Can I apply the money sum insured to calculate the magnitude discount?
The money sum insured or premium should not be included in calculating for the magnitude discount, but the resultant can be applied on the on the premium for money.
- Do I use the sum insured of underlying policy to calculate the Sasria premium?
You need to make use of underlying policy premium and apply the rate to the premium, that will give you Sasria premium.
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GIT AND MARINE SECTION
- Do I add the GIT Section in calculating magnitude discount?
The GIT sum insured should not be included in calculating the magnitude discount, but the resultant of the discount should be applied on the GIT premium.
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- Can I add the motor section in calculating the magnitude discount?
The motor section does not qualify for the magnitude discount.
- Can the construction plant be insured under motor section?
The plant can be insured under motor, but it should be registered for road use first, for it to be insured under motor section.
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