Commercial Motor Vehicle Insurance (Specialist) in South Africa

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The motor vehicle insurance options available to business owners extend far beyond insuring your delivery vehicle. Each type of industry uses some form of a motor vehicle to deliver goods from point A to B or make use of specialised vehicles; examples are the construction, agricultural industries and motor dealerships.

Let us delve into the various options available.  At Phoenix Insure, we understand the great comfort that comes with being educated and knowing what is available in the insurance market to manage and transfer risks.  

Special Type Vehicles 

Your standard commercial insurance policy will allow special type vehicles to be insured under the motor vehicle section of your policy.  For instance, these can be items, a farmer that uses a front-end loader, a grader to maintain the dirt roads on the farm, planters and harvesters, to mention a few.

A construction company involved with tar roads, dams, water reticulation, maintenance work on roads surfaces and low-cost housing would have their very own list of specialised vehicles and equipment. However, it must be noted that the insurance market offers more advanced and specialist products to these industries in the form of a Plant All Risks policy which is better suited for the construction industry.  

Motor Fleets 

Twenty or more vehicles are deemed a fleet. Depending on the size of your motor fleet, type of vehicles, trucks and trailers, a custom-made product offering can be negotiated on your behalf with a suitable blue-chip insurer.

The importance of an internal risk management programme on your motor fleet is priceless.  It starts with the employment of well-trained drivers, regular maintenance of your motor fleet, a suitable vehicle maintenance system, outsourced approved repairers on more minor repairs not worth the effort to claim and even a self-insurance programme on windscreens replacements. 

The benefits of risk management certainly will make a massive difference in the premium versus claims ratio and will enable Phoenix Insure to negotiate market-related terms and favourable premiums on your fleet. 

At the portfolio assessment stage, we will determine your appetite for risk management and develop a 3-year risk management plan which assists us to rectify poor claims performance and get you on your way to pay market-related premiums. There is certainly a science to managing a profitable motor fleet insurance portfolio, and Phoenix Insure can assist you in achieving this.

Motor fleet structured insurance options available:

Specified Fleet

Your fleet items are charged per vehicle at an agreed rate depending on the type of vehicle, value, and loss history. 

Burner or Burning Cost Basis 

Phoenix Insure gathers information on the value of your fleet and losses during a period of 3 to 5 years. We analyse this information a premium per annum is determined. Then, the insurer agrees to a deposit premium (minimum) that the client pays for the year. For example, an insurer would require 60% to be paid, and when claim losses reach a specific R-value, the balance of the premium becomes payable.  Simply put, if you manage claims well overall, you can save the 40% in any 12-month policy period.

Aggregate Excess

As a business owner, you want to have control and self-insure for more minor losses and decide to pay a minimum of R 100 000 excess for a reduction in premium.  The insurer will pay accident and theft claims on this basis; once the self-insured portion is exhausted, the insurer pays 100% of any further losses. Third-party liability claims are paid in full.

Cell Captive Facilities 

You may decide to manage your bespoke insurance fund with a risk carrier.  At least five years of fleet value and claims are calculated, and a unique product is put together for you.  You will manage the fund and outsource claims management. You should evaluate and handle this option with care. 

Typically all third-party liability events are excluded from a cell captive option. A separate liability risk policy will be negotiated with a suitable insurer as a large liability claim can decimate your fund.

Motor Traders External 

If you are a motor dealership and trader, your business will be exposed to risks away from your business premises or road risks. For example, during a test drive with a new customer, an accident occurs or a theft. This form of insurance will protect your business from damage and or loss resulting from these events. For example, various valuable and extended covers can be included, such as damage to the vehicle and liability related damages. 

Motor Traders Internal 

Vehicles parked inside the premises on the showroom floor are also exposed to potential damages. This option will take care of any damages to your vehicle stock whilst inside the building. 

Excess Buy Down 

As some of your vehicles may have high sums insured, the excess in the event of an accident, theft or hi-jacking and or at write off may have an impact on your cash flow. You can purchase excess buy down or excess waivers to manage the risk. However, the insurer may apply limitations, i.e. buy-back option to a maximum of R 50 000. 

Loss of Use 

When your vehicle was involved in an accident and require repairs and thus not in use; you can purchase insurance for loss of the vehicle as you may need to hire a truck or vehicle in; to ensure continuity of your contract agreements. Such a risk solution will pay a cash amount subject to agreed limits, and a time excess may be applicable.  

These unique products must be understood and managed continuously. Therefore, it is crucial that business owner’s partner with a qualified advisor like Phoenix Insure to navigate the way forward and ensure your valuable assets are correctly insured, thereby managing the financial impact on your business after a catastrophe. 

Editor:

Mariette Slippens

Business Executive: Short Term Insurance

DISCLAIMER

This blog does not constitute financial advice. The content is intended to provide information for educational purposes. We recommend that interested parties contact Phoenix at the contact details listed or their financial advisors for a comprehensive review and needs analysis followed by the required record of advice.”

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Thank you for your interest in our Phoenix FSG!

Phoenix FSG provides a new generation type of consulting, advisory and support services by establishing a number of specialised subsidiary companies in the areas of healthcare, wellness, employee benefits, short term personal and commercial lines as well as life assurance and invest product lines.

We would like offer you a complementary full portfolio assessment. Kindly fill out the form and provide us with either a contact number or email address and one of our consultants will be in touch soonest.

Since appointing Phoenix as my medical aid broker in June 2022 I have experienced nothing but exceptional service.

I have been a member of Discovery Medical Aid since 1997. Over the 24 years since joining Discovery I have had several Medical brokers, most of whom provided between little to no service, generally not replying to emails or ignoring telephonic calls. Phoenix is different. They immediately respond to any queries and monitor the query until it is resolved.

When joining a medical aid a medical broker is automatically allocated to you and the cost of this broker is included in the monthly levy paid to the medical aid. I can strongly recommend that anybody who is a member of a medical aid switch their broker to Phoenix. By doing this you will at least receive some value for the monthly that is automatically deducted for payment of a medical broker.

M A Short

Although I have only been working with the Phoenix Group team for a few months, I have worked very closely with Clayton Samsodien on multiple clients. I have only experienced absolute professionalism and impressive efficiency from Clayton, who has an open, patient and friendly manner with everyone whom he interacts with. He is always willing to go the extra mile to assist his clients and their staff members with their requirements.

I would highly recommend the services of Phoenix Group.

Cherice Len

“Dealing with Clayton is always a pleasure. He ensures that he keeps in contact with me whatever my requests are and always ensures to communicate with me. His customer service is impeccable and that is extremely important to me.”

Beverley Williams

“My experience with Phoenix has been nothing short of incredible. After a near death medical incident I was faced with the rude awakening that my finances were not in check. Clayton was very hands on and supportive – he made what was a daunting and intimidating task for me – easy, effortless and quick. My finances are now all organised and in order and I can sleep knowing that one aspect of my life is taken care of and in good hands.”

Garth Brown