20/11/2012
Interessante feite rakende korttermyn. Bron - Santam
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INTERPRETATION OF LIMITED (FIRE AND THEFT) COVER UNDER THE VEHICLE SECTION:
Santam Personal Insurance policy – Vehicle section Limited (fire and theft)
If you have this option, we cover accidental loss of or damage to the vehicle only if the loss or damage is caused by fire, lightning, explosion, theft or attempted theft.
Santam Commercial policy – Motor section
Third party, fire and theft only limitation (if stated in the schedule to be applicable).
The liability of the company under sub-section A is restricted solely to loss or damage resulting from fire, self-ignition, lightning or explosion or by theft or any attempted theft.
IN RESPECT OF “FIRE”:
On the face of it, it would seem that the implication of the above wording is to limit the cover to specific perils. It is however, important to bear in mind that the motor section is an all risk type of cover, dealing with types of damages and not types of perils. The proximate cause principle should thus not be applied.
For example:
Subject to the terms, conditions and exclusions of the policy, the insured vehicle would be covered for fire damage irrespective of the origin of the fire. If however, the vehicle was involved in an accident and caught fire after the impact, the own accident damage claim should be treated as pre-existing loss and be excluded from the settlement amount. Only the damage caused by the fire would then be covered.
IN RESPECT OF “THEFT”:
The wording does not limit cover to situations where damage to the vehicle was caused with the intention of stealing the vehicle in its entirety, or caused in the process of stealing accessories to the vehicle. The issue to be determined is whether the damage or loss to the vehicle was as a result of theft / hi-jacking or attempted theft.
For example:
Damage caused to the vehicle (e.g. a window or door lock) with the intention of stealing content left in the vehicle (e.g. laptop) would therefore also be payable under the above mentioned cover option.
Source: Claims Technical Advice #72
Disclaimer: This document and the contents is for internal use and is intended to address differences in policy interpretation to ensure uniformity in policy interpretation within Santam Claims management environment. Constant changes in the business environment may require that previous decisions are reviewed and amended to ensure relevance within the industry. Only DYK’s available online in the “library archive” should be considered current and relevant.
