This is like a reward discount you get from your insurance company for not making any claims over a certain period. The discount you get can go up or down based on whether you’ve made any claims.

This is the same as No Claim Bonus.

Insurance is there to cover you for when things could go wrong and aren’t really in your control. So, if something bad happens, your insurance will kick in to help you get back to where you were before the loss or event took place.

The excess is the first amount payable if something happens and you need to make a claim. It’s your share of the bill, whether or not the mess was your fault. This is meant to stop people from claiming for every little thing or trying to pull a fast one, which helps keep everyone’s insurance costs down. If the total cost of fixing whatever went wrong is less than the excess, it will be your responsibility for paying the whole claimyourself.

Sometimes, though, if someone else is to blame for the mess, like in a car accident, for example, your insurance company might try to get back the excess from them. This has varying degrees of success. The way excesses work can change depending on the type of policy you have, so it’s a good idea to double-check your policy or just ask your insurance broker.

Waiver of excess, also called an Excess Buster or Excess Waiver, is when you don’t have to pay the basic excess amount listed in your policy if you make a claim. But, any extra excess amounts mentioned in the policy still apply. This waiver is only for the person who’s insured, and there are some conditions. You’ve got to be at least 28 years old and have had a driver’s license for more than 2 years. These are the rules for Hollard and Renasa on our facilities, but other insurance companies might have different conditions.

The Insured is the person named in the Policy Schedule and includes his/her spouse as well as family normally living with him/her and financially dependent on him/her.

“Average” kicks in when you’re not fully insured for your home or belongings. It means you’ll only get a portion of your claim if something bad happens. This rule applies mainly to claims for your house or stuff inside it, where the insurance pays for new items to replace the old ones.

Here’s how it works: If it turns out the cost to replace everything you own or your home is more than what you’re insured for, the insurance company won’t cover the full bill. Instead, they’ll pay out only a part of it, based on how much you’re underinsured.

Example: If you are insured for R500 000, but he replacement value of the property is R1 000 000 you are only insured for half of the replacement value and you must cover the other half.  If you suffer a loss in the amount of R100 000, they will only pay half of this amount, which is R50 000.

This is a condition in a policy of insurance which must be complied with literally.

SASRIA, which stands for South African Special Risks Association, is the go-to insurer for damage caused by rioting (whether it’s politically driven or not), strikes, civil disobedience, rebellion, and labour disturbances. Most regular insurance policies in South Africa don’t cover these kinds of situations, so SASRIA steps in with what is called a coupon policy to cover those specific risks.