“Smart Money : Financial Foundations for a Resilient Future”

NFO TIPS TO ENHANCE YOUR FINANCIAL WELLBEING

Ensure that you know the security requirements specified by your insurance policy for your home and vehicle, and that they are implemented as soon as possible.

Inform your insurer as soon as possible of any changes to your circumstances, such as when you buy or sell a motor vehicle.

Ensure that your household contents and your home are insured for the correct replacement values. If you are under insured, your insurer may apply “average”, as set out in the wording of your policy, to a claim. This may result in a significantly reduced pay-out.

Security requirements for theft and hijack should be contained in your motor vehicle insurance policy. Ensure that you comply with these requirements in order to have cover in the event of a loss.

An insurer may reject your claim for non-compliance with a policy requirement. For example, if a tracking device is required, it must be in a good working order at all times and it is your responsibility, as the policyholder, to ensure this. Due to the high risk of hijacking, some insurance policies require motorists to install two fully functional tracking devices as a safety precaution, especially on certain makes of vehicles that are frequently targeted. If this is the case, it is your responsibility to fulfil this condition.

Read your policy documents, including the policy wording and the schedule. This will help you understand which claims your insurer will or will not settle and assist you with submitting valid claims. If something in your policy doesn’t make sense, ask your broker or your insurer to explain it to you.If you are unhappy with the findings of a report obtained by your insurer, when they are in the process of validating a claim, and you want to challenge these findings, you can obtain your own report to assist you with your claim.

Always ensure that the correct information is provided by you when you apply for insurance cover – this may affect whether the insurer offers you cover, and on what terms and conditions.

If you do not understand what information you are being requested to disclose by your insurer, ask your insurer or broker to explain it to you. Remember that inaccurate or incomplete information may affect your cover, which may, in turn, affect you when you claim.

Your policy will contain strict time limits for reporting claims and potential claims. Make sure you are familiar with these limits and always notify your broker or insurer as soon as possible after an incident.

Make sure that your property is insured for the correct value. Even though the insurer may increase your premiums annually due to inflation, most policies state it is your responsibility, as the policyholder, to check that all the items on the policy are insured for their correct replacement value.

Check your policy regularly and update it, if necessary, for example, if you upgrade your phone to a newer, more expensive model or purchase home contents, or add after-market accessories to your vehicle.

Know your policy: the cover, exclusions, and conditions. This will help you to understand whether your insurer was correct in rejecting a claim, or if you should dispute the rejection.

Keep records of everything to do with your insurance, retain correspondence, invoices and photographs that could be useful in terms of establishing the facts involved in any dispute. Always stay calm and polite when dealing with your insurer. This will make the claim’s process smoother and easier for everyone.

Try and keep up to date with changes in laws, regulations, and consumer rights. This knowledge may help you in a dispute with your insurer.

Review your policy schedule each year and update the replacement values of your insured items if necessary. Remember, if your insurer agrees to settle a claim, you may not be paid the amount that you originally paid for the item, but rather the cost of replacing the item at the time of the loss / damage. So, if you bought a phone in 2022 for R10,000 and insured it for this amount, but the same phone only costs R8,000 in 2024, your insurer will only settle your claim for this lower amount, being its replacement value at the time of the loss.

Keep up with regular maintenance to your property to prevent damage and avoid the risk of your insurer rejecting a claim on the basis of wear and tear and a lack of maintenance.

Always provide true and complete information regarding all aspects of your insurance policy, including ensuring that you notify your insurer of any changes that happen after the start of the policy. This is your responsibility throughout the entire duration of your insurance policy.

In the event of a claim, and depending on the damage, it may be a good idea to appoint your own service provider or assessor to provide a report that you can submit to your insurer.

If you upgrade your phone, it’s important to remember that your insurance does not automatically transfer from the old cell phone to the new one. You need to tell your insurer that you want cover for your new phone.

It is a standard requirement in cell phone insurance offered by cell phone providers that you use your device with the cell phone number noted on the insurance policy at the inception of cover. If you want to use a different number, you must notify your insurer so that your phone remains covered by the policy.

Failure to comply with the law and with the terms and conditions of your policy may result in claims being rejected. It is important to make accurate disclosures and to provide true and complete information to your insurer at all times.

Make sure that you are not under-insured, especially when it comes to your household contents. Take an inventory of your contents and compare it with the insured value noted on your coversheet, then adjust your insured value as needed.

Always read your updated policy documentation. Often your insurer will make changes to your cover when they renew your policy. Look out for changes to your premium as well as your excess amounts. If you have any queries, contact your insurer or broker for clarification.

When comparing insurers, the price of the premium should not be the only consideration. A lower premium may seem attractive but be certain to also check the level of cover you receive in return. Ideally, you should choose an insurer that offers a competitive premium rate in addition to a comprehensive policy that doesn’t come with many restrictions or exclusions.

When applying to the NFO for assistance, concisely set out the details of your complaint. Wherever possible, only raise issues that are still in dispute.

When submitting a complaint to our office, ensure that it is accompanied by all the relevant documentation; this will assist us in dealing with your complaint efficiently and timeously.

Know the coverage period of your insurance, that is, how long it runs for. Any claims must be made within this period.

Contact your insurer as soon as you become aware of damage or a loss that may be covered by your policy. If you delay, this may affect the result of your claim. Also be sure to complaint the claim form properly and provide all the required information.

Take photos and / or videos that clearly show the nature, cause and extent of the damage or loss you are claiming for.

Know your rights: you can approach the NFO for free assistance if your claim is rejected.
For help with understanding your policy or with making a claim, you can consult an insurance broker for professional advice.

In the case of a motor vehicle claim, you must pay the excess amount, regardless of who was at fault or who caused the accident.

Remember that premiums are paid in advance. If the premium was not received by your insurer for a specific month, then you are not covered for that month. To enjoy continuous cover and peace of mind, always pay your premiums on time.

If you do not pay the first premium at the start of your policy, your cover will not begin as the 15-day grace period does not apply to the first premium payment.

You are advised not to simply put a stop payment order on your premium payments because this will result in your policy being cancelled. Instead, speak to your insurer or broker before terminating your policy.

You have a duty in terms of your policy to assist your insurer with any relevant information that they have reasonably requested in order to validate a claim or assess a risk.

Make sure that you give your correct contact information to your insurer at the start of your policy and update your insurer with any changes to your details or circumstances.

Pay attention to emails and letters from your insurer as these may contain changes to your cover or the requirements of your policy.

Do you have GAP medical cover in place to cover you in the event of a shortfall following a medical aid claim settlement? This type of policy can provide you with additional cover but make sure you understand the terms and conditions of this type of cover.