![]() ![]() If for example a computer box fails electronically and ignites – setting the vehicle alight causing it to burn out – the fire damage to the vehicle will not be excluded, but the electronic failure of the computer box will be excluded (if it could be determined during the investigation of the claim as the cause of the damage).Īnother example would be where the prop shaft of a vehicle breaks due to mechanical breakdown and is flung underneath the vehicle damaging the floor panel and rear suspension. If the mechanical breakage was caused by some or other external factor – for example where a petrol attendant inadvertently putting petrol instead of diesel in a vehicle’s fuel tank – the consequential mechanical breakage to the vehicle’s engine will be covered*. This brings us to the next challenge: when are these types of breakdowns excluded? Mechanical, electronic and electrical breakdowns, failures or breakages are only excluded if they were brought about by some or other inherent defect in the vehicle itself. Understanding exclusion in terms of mechanical, electronic or electrical breakdown The consequential damage to the radiator and engine is covered and seen as consequential damage.The fan blade falls within the exclusion of mechanical breakage and will not be covered.For example, if a car’s fan blade breaks off and damages the radiator to such an extent that the engine overheats, the damage to the radiator and engine is consequential damage. Consequential damage is included under comprehensive cover and is damage resulting from other damage. Clients should be careful not to confuse consequential loss with consequential damage as the wording only refers to consequential loss. These costs are seen as consequential loss and not covered in terms of the policy wording. Where a client wants to claim for vehicle hire (without including this optional cover) whilst the vehicle is being repaired.Where a client wants to submit a claim for a decrease in the market value of his vehicle because the vehicle was involved in a serious accident, or.Help your clients to understand that this term refers to a financial type of loss. Make sure they understand the specific exclusion (exception to sub-section A (a)) in terms of consequential loss and mechanical, electronic or electrical breakdown.Ĭonsequential loss: what to watch out for We clarify the differences between consequential loss and consequential damage with real-life examples, so it’s easy for you to explain policy exclusions to clients. damage – but it can be very confusing for your car insurance clients to understand. It’s only a difference of two words – loss vs. TODAY’S FARMERS HAVE TO KNOW MORE THAN JUST FARMING.Ĭlaims Blog Tools Get a quote Find a broker Risk & Calculators Information Contact Santam Drive in centres.Combined building and home contents insurance. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |