Why it’s important to keep your policy documentation updated

Insurance gives you the peace of mind, that in the unfortunate event that you need to claim, you can call on the services of your insurance broker to assist you with your claims process. That is why keeping your policy documents updated is important.

It plays a vital role in ensuring that you get the best out of your insurance, this will assist you in avoiding any unnecessary complications when there is a claim.

If you’re not sure what you should be updating on your policy document, here are seven points to consider in ensuring that your information is up to date.

  1. Personal details & risk address: your personal details are an important part of your insurance policy. Personal details include your name and surname, your email address and contact numbers, as well as your physical home and work address and bank account information.
  2. Personal or business use: The purpose for which you use your vehicle gives your insurer an indication of how much time the vehicle will be spending on the road, as well as what traffic conditions it will be driven in.
    • Personal use is when you use your vehicle for social, domestic or recreational purposes as well as to and from your fixed place of work. i.e. trips between your residential address and permanent working address
    • Business use is when the vehicle is used for business-related travel beyond driving to a fixed place of work and back, i.e., travelling to meetings at different locations, collections or deliveries for work, seeing clients, being a rep, etc.
  3. Upgrades & Add-ons: if you have made any upgrades to your vehicle (non-standard accessories) such as new mags, a sunroof, or Smash-and-Grab, you need to specify these changes on your policy
    • If you add any extra accessories to your vehicle after the initial inspection is completed, you will need to have the vehicle inspected again to note these accessories on your policy.
  4. Regular or Nominated Driver: On any vehicle insurance policy, clients are required to specify who will drive the vehicle most often (regular driver). Clients are also able to add nominated drivers who have permission to drive the insured vehicle.
    • We base the insurance premium on the regular driver’s risk profile. We look at various aspects which include the driver’s age, how long they have had their license and their insurance & claim history.
    • If we don’t have the correct information, chances are you’ll be paying the incorrect premium and you may have NO COVER in the event of a claim.

    It’s always best to make sure that your policy reflects the correct information to avoid confusion or unnecessary delays at claims stage

    • For example, if you were to lend your vehicle to a friend for 3 weeks out of the month, this would make them the regular driver for that month. If this is not correctly captured, there may be no cover in the event of a claim in that month.
  5. Work Address Parking: Indicating where your vehicle is parked while at home, is important. You should take into consideration factors such as the type of parking, the security, and the time of day in which the vehicle is parked. All this information can affect your policy and can impact your risk profile. i.e., in a garage, behind a locked gate, within a boomed off and secure area, etc.
    There is a difference between the risk address and overnight parking;
    – risk address indicates the area or suburb where the vehicle will be kept most of the time
    – overnight parking indicates the level of security of the parking area i.e., locked gates, locked garage, etc
  6. Home Address Parking: Indicating where your vehicle is parked while at home, is important. You should take into consideration factors such as the type of parking, the security, and the time of day in which the vehicle is parked. All this information can affect your policy and can impact your risk profile. i.e., in a garage, behind a locked gate, within a boomed off and secure area, etc.
    There is a difference between the risk address and overnight parking;
    – risk address indicates the area or suburb where the vehicle will be kept most of the time
    – overnight parking indicates the level of security of the parking area i.e., locked gates, locked garage, etc
  7. Selling your vehicle: In the event that you sell your vehicle you will have to contact your insurer and make the necessary changes to your policy document. Don’t forget to remove the vehicle from your insurance policy.

If you need to make any changes to your policy documentation, kindly contact one of our friendly consultants today at 0861 001 002, and we will assist you in updating your policy documentation.

African Independent Brokers (Pty) Ltd (Registration number 2012/010479/07) is an authorised financial services provider (FSP38159). Copyright © African Independent Brokers (Pty) Ltd – All rights reserved.