We have extended our focus under the Transport banner to include Commercial and Corporate fleets.
Whilst our previous focus has been on the transport of customers’ goods for reward on a specified fleet basis, we have added insurance of unspecified fleets as an additional focus.
These fleets are typically used for the carriage of own goods or as support vehicles for a larger commercial enterprise. The entry level is fleets of 25 vehicles or more.
Product Features and Optional Cover:
- Unspecified basis with quarterly, biannual, or annual declaration adjustments, dependent on fleet profile and progression.
- Annual or monthly premium payment options.
- Retail or agreed value settlements.
- Flexible excess structures.
- A full range of add-on covers such as non-accident towing, roadside assistance and tool-of-trade, among others.
- Car rental for light vehicles, including LDVs with or without canopies (30- and 45-day options).
- Increased liability options up to R50 million.
- Static Risk cover for parked vehicle accumulations.
- Environmental liability and spillage clean-up from accident sites (optional).
- Aggregate funds.
- Burners.
- Profit shares.
- Retained and lodged funds.
- Excess-free windscreen replacements (alternative glass only) via our dedicated Windscreen Replacement Team.
- 24/7/365 Incident Management Centre.
Market Positioning:
Retail value, including fitted accessories and permanent fixtures and equipment, is the default settlement basis. Agreed value is available in line with HCV policy conditions.
Our target market is commercial fleets that do not outsource logistics requirements to commercial transporters, as well as support vehicle fleets for primary enterprises, light vehicle fleets such as vehicle rental companies, and small courier or delivery vehicles transporting own produce or goods.
There is no requirement for supporting commercial business, as we accept Motor Fleets on a standalone basis.
Basis of Settlement and Adjustments:
Retail value, including fitted accessories and permanent fixtures and equipment, is the default settlement basis. Agreed value is available in line with HCV policy conditions.
Adjustments are calculated on a 50% of difference basis. The difference between opening and closing values or numbers is charged at 50% of the additional or return premium, based on the ruling premium rate applied to the difference in value or number. This approach assumes that fleet changes occurred at different times during the period but, to reduce administrative burden, these are presumed to have occurred on average at mid-term.
Value reductions, particularly for fleets insured on an agreed value basis, do not generate refunds. As vehicles are depreciating assets, a reduction in value due solely to depreciation during the insurance period does not result in a return premium. The closing declaration and adjustment thereon is only based on actual additions or deletions that occurred after inception of the insurance period and not on the depreciated vehicle values at expiry.
During the fleet product development phase, rates may be adjusted to include certain extensions, as not all options available under the HCV specified vehicle policy apply to the Fleet profile.
Excess Structure:
There is no standard excess structure. Excesses are generally a percentage of the claim, with suitable minimum levels and double the basic excess for theft. Excess structures are negotiable per risk and aligned to the premium level and fleet risk factors.
Excluded Fleets:
- Security fleets (especially armed response vehicles).
- Emergency response vehicles.
- Cash collection vehicles.
- Local Government and Municipality fleets (low rating basis).
- Car movement on own wheels risks.
- Floor plan / dealer stock vehicles.
- Motor traders.
- Towing and recovery fleets.
- National car rental agencies.