Statistics South Africa reported that the South African economy slipped into recession during the second quarter of 2018.

The widely recognised indicator of recession is two (or more) consecutive quarters of negative growth (real GDP quarter-on-quarter). South Africa experienced its last recession during the 2008 – 2009 global financial crises.

Agriculture production, transport, trade and manufacturing industry and government activity all decreased whilst mining, construction, electricity, finance and personal services experienced positive growth, but not enough to lift overall economic growth out of negative territory.

Most people are concerned as to the impact on their savings, investments and retirement.

How can one protect oneself during a recession?

• Don’t take your job for granted!
• Draw up a monthly budget and keep to it!
• Save and buy selectively. Consider whether you need certain luxuries.
• Pay off your debts as quickly as possible.
• Don’t borrow money or make new debt.
• Invest in more stable investments with less exposure to market risks.
• Ensure that you don’t miss premium payments (life, disability or asset insurance) to not risk the exposure of not having cover.

How to stay insured during difficult times …

Brokers need to actively support their clients by being vigilant about unpaid premiums.
It’s better for clients to review and adjust cover than being exposed in difficult times due to lapsed or cancelled policies.

Clients need to be aware of options that could affect their premium like:

• Reviewing values of vehicles, building and contents to ensure adequate cover without being over-insured and paying too much premium;
• The number of claims you report, can increase your premium;
• Removing specified all risk items you no longer use or sold;
• Increasing the excess structures on your policy,  will reduce your premium;
• Consolidating all your personal short-term cover into one policy for a more competitive premium;
• Specifying a regular driver of a vehicle can save premium; and
• Ensuring that you get an age or pensioner discount if you qualify, etc.

DAMAGED PROPERTY (Salvage)

When insured goods are damaged and the insurer has either replaced them or paid the claim, the damaged property, known as salvage, becomes the property of the insurer, which the insurer can legally sell to defray costs. As such, policyholders should not dispose of, give away, or sell damaged goods without first obtaining permission from their insurer.

In terms of the insurance contract, the insurer will pay out or replace damaged goods for the policyholder. Since it is effectively absorbing the loss, your insurer will have rights in any damaged property that is has covered. If you then dispose of the salvage you are preventing them from exercising that option.

In short, regardless of whether you are insured or not, policyholders should act at all times as if they are not insured and assume full responsibility for the safety of all their goods, damaged or otherwise.

Salvaged goods are often required by insurers to check if a claim is valid and that the cause of damage is covered. Here again, if you dispose of, or abandon the damaged property before the insurer has been able to check it, you may find your claim being rejected, or you may have to reimburse your insurer for salvage.

As such, it is important at all times to treat and care for you damaged goods as your own until such time as your insurer tells you what to do with them since even after a claim is settled a policyholder remains obligated to assist the insurer conclude a successful recovery.

In today’s self-help society, driven by the myriad opportunities offered by technology and the internet, where it is easy for the client to cut out the middle man, the importance of the broker is sometimes ignored. Over the last decade or so, the insurance industry has been particularly affected, with consumers bypassing the broker and going direct.

A broker offers the very personal option of interacting face-to-face, and he or she brings many years of knowledge to the table. Clients are likely to be asked more probing questions, ensuring that they are correctly risk-rated and that the policy they choose, are fitting to their needs. This is in contrast to dealing with call-centre agents with whom clients can never build any sort of continuing relationship.

It may be challenging for a client, to compare quotes from insurers, because each insurer may risk-assess the client differently, require different levels of excesses, and/or offer different bells and whistles.

This is an added reason for relying on the expertise of a broker in making a decision.

A good Broker will be able to provide clients with technical advice and help with the claims procedures and even conflict resolution if it is needed. A broker combines technical, legal and industry knowledge gained from years of experience to guide clients.

An additional advantage is where the broker and Legacy team up to provide so much more value to the client and their risk requirements. Legacy continually assists the broker in determining the risk and ensuring the clients’ needs are met.

Thus, there will always be a place in the market for the broker and the importance of the broker should never be under estimated.

Let’s talk about the level of insurance cover …

Third Party Fire and Theft and Comprehensive are the two most popular levels of cover. You might think that Third Party Fire and Theft would always be cheaper, as it does not cover damage to your car, but this is not necessarily the case for everyone. Get quotes for both types, as you might be able to save money in this area.

One thing to bear in mind: if you choose a lower level of insurance, could you afford to get your car repaired if you had an accident? It’s easy to convince yourself that “it will never happen to me”, but if a few thousand-rand repair bill would take you off the road permanently, it could be a false economy not to pay a little more for Comprehensive cover.

What about the excess?

The policy excess is the portion of a claim that the insured has to pay. For example, a 5% min R2 500.00 excess means that you would pay the first 5% min R2 500.00 of repair costs if your car was damaged in an accident, and your insurance company would pay the balance. Insurance companies apply a compulsory excess to policies (the amount will vary depending on the insurer and your circumstances).

And vehicle security?

You can increase security measures by installing an alarm, tracking system or by parking the vehicle in a lock-up garage  overnight. These measures are recognised by certain insurance providers resulting in lowered insurance premiums to the client. By taking these precautionary measures, the vehicle is less likely to be damaged or stolen and therefore decreases insurer risk.

The latest addition to our growing Art Collection:

The Road to Calvinia
Adriaan Boshoff (1935-2007)

You can call Legacy on 086 124 3648

Bryte Insurance Company Limited is known as a leader in Hospitality Insurance. Here is a short overview of the four fantastic niche products that Bryte has to offer.

1. BnB Sure

This would typically be establishments with up to 30 rooms and would include the following types of risks:  Bed and Breakfast, Guesthouses, Boutique Hotels, Country Houses, Self-catering, Backpackers and Holiday Homes.

2. Boutique Stay

Risks covered under this product would include the following: Hotels, Big 5 type game lodges, Hunting Risks, Boutique Hotels and Resorts.

“Nice to know”: Post-trauma counselling of R3000 per person (R15000 per event) is included, contents of the owner or manager can be insured on this policy, crime extends to cover no forcible and violent entry requirements for theft, motor cover includes car hire in the event of theft or an accident. Loss or revenue cover extends to prevention of access within 30km radius which shall prevent or hinder use of the premises and bilking for R25000.

3. Tours and Transfers

Great cover for Tour operators, Travel agents, Tour brokers, Tourism transport, Shuttles and transfer operators.

“Nice to know”: Broadform liability cover includes food and drink poisoning up to the limit of indemnity, theft of guests property included for R30 000, material damage extended to cover accidental loss of refrigerated stock for R30 000, damage caused by escape of beer or other beverages for R20 000 and power surge included for R50 000.

4. Wine and Dine 

This product provides cover for the following:  Restaurants, Wedding venues, Cafes, Convention centres, Golf clubs, Wellness centres, Spas, Banquet halls, Delis and Caterers.

“Nice to know”:  Loss of revenue cover extends to include cancellation of bookings due to illness, injury or death, evacuation costs of guests for R50 000 and attacks by sharks/wild animals within a 20km radius.  Motor cover includes car hire in the event of theft or an accident, loss of keys for R10 000, and emergency expenses for 7 days.

Legacy welcomes a new member to the family …

Now that’s Commitment …

Spring is in the air so here are some spring cleaning tips to avoid claims …

The latest addition to our growing Art Collection:

“Eroded Watercourse”  (1918)
Ernst Karl Erich Mayer (1876-1960)

Cecile Schroeder –  5 September 

You can call Legacy on 086 124 3648

Here are more niche products for specialist needs that are offered by Hollard and recommended by Legacy. No business is the same and our Brokers work hard to ensure that you get a tailor-made quotation for your particular business.  We have to agree with the following words from Hollard – LONG LIVE THE BROKER!!  As always, we are looking forward to doing business with you!

Group personal accident cover for death, permanent disability, temporary total and/or partial disability, and medical expenses.

In addition, they offer:
• Terrorism and disfigurement included at no extra cost
• HIV counselling, submission of COID and RAF claims assistance can be included
• Flexible options of benefits and covers, including aggregate excesses, burning cost or 50/50 options
• Enroute In-Car Insurance® covers driver and passengers and Enroute On-Road covers individuals
• The Multi-Benefit Plan is aimed at the one-man business

Specialised products that best suit the specialist needs of tourism businesses.

Long-standing partnerships with a number of African insurers allow us to provide insurance solutions for risks throughout Southern Africa and the Indian Ocean islands. We cover Urban Hotels, Boutique Hotels, B&B’s, Guesthouses, Conference Centres, Safari Lodges, Tented Camps, Golf and Wildlife Estates, Game and Nature Reserves, and more.

Trade guarantees:

Construction guarantees:

Niche products purpose-designed around the needs of hauliers and transport contractors, focusing on companies that carry goods for reward.

Hollard’s specially designed trucking policy is tailored per client. From comprehensive cover to limited third party cover, with additional covers such as Loss of Use, Excess Reducers etc. are available on request.

Underwriting can be done on a fleet or single-vehicle basis. Cars, LDVs, buses and certain specialty vehicles can be considered, but only if they form a minor part of the vehicle schedule.

CANCELLATION OF POLICIES – BE AWARE OF THE PITFALLS!

Although cancellation of policies forms part of our daily tasks one do not always realize the pitfalls (regulatory requirements) that we may face when a request to cancel a policyholder’s policy is received.

We tend to forget that the policy contract is an agreement where the policyholder and the Insurer enter into an agreement with each other. As an Intermediary, the broker assists the client to find a policy that suits the client’s needs the best. The broker however never becomes a party to the contract between the policyholder and the Insurer. For an agreement to end, either of the parties must in terms of the contract’s terms and conditions, inform the other party of the cancellation of the contract. It therefore stands, that subject to regulations, only the policyholder or the Insurer may cancel the insurance policy.

In 2016 the FSCA (formerly FSB), published an article where they dealt with this issue in detail. Among other requirements the Regulator has made it clear that written consent should be obtained from the policyholder prior to the cancellation of any such policy.

For Legacy Underwriting Managers to comply with the above, and other regulatory requirements, we may only cancel a policy if we have received the following documentation:

1. The policy holder’s signed written instruction or consent to cancel the policy.
2. A written mandate signed by the policyholder authorizing or instructing the broker to cancel the policy on the policyholder’s behalf. The policyholder’s instruction to the broker must be clear that the broker may cancel the policy on the policyholder’s behalf and must not be vague. If there is any doubt about the cancellation instruction, it may be required to request the client to confirm the cancellation instruction in writing before the policy can be cancelled.

Any such consent or instruction should at least contain the policy holder’s details and policy number.

Where the policyholder’s request for cancellation is obtained telephonically, the conversation must be recorded and submitted to us. The conversation needs to be clear and the policyholder needs to be identified. It is also important that the policyholder must give explicit instructions to cancel the policy. Depending on the quality and the contents of the recording, the policy may be cancelled. It is however strongly recommended that a written consent or instruction is obtained from the policyholder in order to avoid possible misunderstandings.

Legacy also appreciates your assistance in providing us with the reason for the policy being cancelled. This information will assist us and the Insurers with our TCF commitments towards the development of products, that are designed to meet the needs of policyholders and also that products and services are provided that comply with the policyholder’s expectations.

The latest addition to our growing Art Collection:

“It was a Good Day”  (2007)
Adriaan Boshoff (1935-2007)

You can call Legacy on 086 124 3648

Legacy is proud to be a business partner of Santam and would like to congratulate them on their 100^thyear celebration.

On 28 March 1918 the South African National Trust and Assurance Company Limited and Suid‑Afrikaanse Nasionale Trust- en Assuransiemaatskappij Beperk was registered, and has become the household name known as Santam.

A small group of Afrikaners and a Scotsman got together in the Royal Hotel in Cape Town.  With a shared dream, to found an insurance company that would give South Africans access to the economy. Santam opened its doors for business on 1 May 1918 at 10 Burg Street in the Cape Town CBD.

100 Years later Santam grew into South Africa’s largest short-term insurer and one of the country’s top-performing listed companies that has investments and clients in 33 countries outside South Africa, including Namibia, Zimbabwe, Morocco, India and Malaysia.

As from Legacy’s existence in 2003, we decided to sign a partnership with Santam as our values and visions of how we do business are the same – with integrity, passion, humanity, innovation and excellence.

Legacy would like to review some interesting facts of Santam’s achievements over 100 years;

• 1918: Sanlam is registered as a full affiliate of Santam and takes over African Homes Trust.
• 1924: Declares its first dividend of 7,5%.
• 1935: Disposes of Homes Trust, selling all its shares to Sanlam for £148 843.
• 1948: Starts doing business in Rhodesia – first in Salisbury and later in Lusaka.
• 1958: Pays out £10 000 to a farmer from Grootfontein in South West Africa who had lost an eye, probably one of the largest amounts ever to be paid out, for losing an eye. In the same year Santam Trust’s letterhead wins first prize in the SA Art Industry exhibition.
• 1968: Chairman Dr CR Louw steps down after 50 years as board member andthe company posts a record net profit.
• 1972: The head office in Main Road, Port Elizabeth, received a bronze medal as the best piece of architecture in the Eastern Cape.
• 1978: Sanlam becomes the majority shareholder in Santam.
• 1989: Elida Meintjies start working as advocate at Santam and making them the first short-term insurer to have an advocate in its service.
• 1998: A 24 hour fraud-reporting phone line was introduced.
• 2006: Santam is rated the top primary insurance company on the African
• 2010: Sanlam sold their 68.75% stake in MiWay to Santam
• 2012: Santam is voted the FIA’s Insurer of the year for Personal Lines and Commercial insurance and received local and international recognition.
• 2015: FIA votes Santam as the best short-term insurer and receives a number of Loeries for advertising. The first female Chief Executive to be appointed at Santam was Lize Lampbrechts.
• 2016: Voted top Personal and Business insurer in the Sunday Times Top Brands Survey and is certified as one of the top employers.
• 2017: Leading short-term insurer in South African in both corporate and personal insurance categories.
• 2018: Celebrating its centenary.

Santam is praised for always being available in times of need – some of the major events where they were involved include;

• 1981:  Laingsburg flood where 184 homes were destroyed.
• 1988:  Flooding that hit the Orange Free State and Northern Cape and was the country’s most severe to date.
• 1996: A massive cloudburst hit Pretoria on 19 January.
• 2002:  Heavy rains between Mossel Bay and East Londen results in millions of rands damage.
• 2015: Table Mountain Fires between February and April almost destroyed 7 000 hectares of land.
• 2017:  Gauteng and Durban were battered by storms and were there major losses and the Knysna Fire that destroyed hundreds of homes and more than 10 000 people had to be evacuated.

Santam’s commitment to their clients is what separates them from the others.

They are always there if things go wrong.

Have you checked your insurance renewal this year?

1. Have you checked if your insurance contract is still up to date and relevant? Avoid being caught empty handed.
2. Remember it is your duty to insure your items for their correct values. Avoid being under insured. Make sure that you read your policy on under-insurance and the application of average.
3. Having an accident is extremely stressful. Keep your insurer’s & roadside assistance numbers on you at all times. They can help you when you need it most.
4. You will need to prove the existence and value of any item you claim. Keep invoices, valuation certificate and receipts in a safe place.

Legacy would like to congratulate Thea Prinsloo (left) and Elize van der Merwe (right) for their 10 years of excellent and committed service.

Did you know that Hollard not only specialises in Commercial and Personal insurance, they also have a wide range of niche products available!

Here is a quick reminder of a few special types of products that can also be placed with them.

An expert team with engineering and insurance backgrounds, able to handle projects of any size. Thanks to their significant level of specialist expertise, Hollard-Scintilla is the construction insurer of choice for many insurance intermediaries and is well-respected both locally and internationally.

Unique, specialist insurance for appreciating assets, art, antiques and collectables. Hollard have years of experience dealing with private and corporate collectors, antique dealers, fine art dealers, auction houses, museums, exhibitions, restorers, artists, specialist packers and shippers.

Insurance products covering risks associated with the movement of cargo by ship, road, rail, air and post. Our cover extends to stock throughput risks and project cargo (ALOP/DSU). Hollard’s cover also offer hull and specialist liability insurance, such as Charterer’s Liability, Stevedore’s Liability and Ship Repairer’s Liability.

A niche range covering against the risks experienced in the agricultural sector. Their products are as unique as the individual needs of the farmer, covering risks pertaining to cooperative and estate wine cellars, fresh produce packaging and cooling plants, liability, exports, products guarantee, plastic tunnels, poultry, warehouse liability and personal lines requirements of the farmer etc.

We are very proud to announce that we have teamed up with Hollard, South Africa’s largest privately-owned insurance group to provide a superb product and facility where the broker can place unsupported motor business. According to the South African Insurance Association 2017 Annual review, motor insurance remains the largest short-term insurance business class, accounting for approximately 45% of short-term insurance business. Thus we have secured a product to facilitate the broker to capture this market with the assistance of Legacy Underwriting Managers.

This product will officially launch on the 1^st of July 2018 and we encourage all of our brokers to start quoting and placing business without delay on this new Product.  We will facilitate and assist with all the necessary queries about the product offering and underwriting criteria applicable, to all our broker partners shortly.

Not to let the cat out the bag; but watch this space for other big things to come from our unsupported motor facilities.

The latest addition to our growing Art Collection:

“Indian Street Festival” 
Robert Gwelo Goodman (1871-1939)

You can call Legacy on 086 124 3648

Misunderstandings regarding the excess payable on a policy

Many policyholders struggle to understand what an insurance excess is. They don’t understand why they have to pay this and especially how they can get their hands on these funds if they were not to blame for the accident resulting in the insurance claim!  But let’s start at the beginning.

What is an excess?
An excess is the first amount payable by you in the event of a loss, and is the uninsured portion of your loss, so when you submit a claim you’ll have to pay an excess. It usually has to be paid to the garage fixing your car once it is repaired before you can drive it away.

Is my Insurer obliged to recover my excess?

In many cases the Insurer will want to recover its own outlay – that is the amount which it has had to pay its own insured, and it is entitled by virtue of a doctrine called subrogation to actually institute proceedings in the name of its insured against any negligent third party in order to endeavour to recover that outlay. The Insurer is however not obliged or bound by any regulation to do so.  If your insurer does not wish to recover it’s outlay, then you have the right to sue the other driver for recovery of your excess, but if you do this you take the risk of the outcome of the case, and if you lose it, you may find yourself paying both sets of legal costs involved and not recovering any of your excess at all.

TEAM RALLY OF EPIC PROPORTIONS

At Legacy we believe that the strength of the team is directly equal to the strength of each individual. That is why we had a lively discussion at the Orient Hotel in Pretoria where we discussed the possibilities on how each of us can productively re-allocate our core roles and responsibilities towards the collective strength of our future Legacy Management Team.

We wish our new team the best of luck in achieving their goals.

Legacy would like to congratulate Margaret van Aswegen for her 10 years of loyal and dedicated service.

Quality of Information

Not too long ago Insurers only made use of the minimum information to rate and underwrite the risk of a policyholder.  With the latest technology available, there have been an increased focus by Insurers to use more scientific data in order to rate a policyholder’s risk and therefore the quality of the policyholder’s information became more important.

The amendment of recent financial regulations (especially the Policy Protection Rules) and the commencement of the POPI Act which is imminent, the quality of information is not only a useful underwriting tool but has also become a regulatory requirement.

In this information age, organizations simply cannot afford to be without the quality information they need to effectively connect with policyholders and ensure that policyholders are correctly underwritten at a fair premium.

Some of the most important regulatory requirements to which all Insurers must adhere to, is the ability to be able to contact the policyholder and to know the risks they are underwriting.

The broker as the representative of the policy holder is the “first line of defense” to ensure that the quality of the information is correct and complete. It is therefore imperative that the broker must ensure that when interacting with the policyholder, the broker must obtain the latest and complete details of the policyholder and forward any updates to Legacy Underwriting Managers without delay. This information gets uploaded onto the Insurers’ data base on a continuous basis to ensure that they have the latest information available and comply with required regulations.

It is also very important that the broker must update their own information when they make any changes themselves, especially to their contact details. If you have recently made any changes to your business or your contact details, kindly send Legacy Underwriting Managers your latest details in order to ensure that we update your information accordingly.

The latest addition to our growing Art Collection:

“Granada Evening” 
Robert Gwelo Goodman (1871-1939)

You can call Legacy on 086 124 3648