Know about the product   The deteriorating socio-economic environment has resulted in the upsurge of a risk, which as little as 5 – 10 years ago was considered negligible.  As the incidents of hijacking gained momentum, Insurers responded by introducing a separate excess structure, which has been gradually increasing ever since, with the aim of increasing the Insured’s involvement in risk management and decreasing overall underwriting loss figures.  However, this trend creates the very real possibility, that should a hijacking loss occur, the Insured is faced with a large proportionate contribution, which is seldom planned for, and can have dire consequences on any operations cash flow. What's it all about? Previously we only offered Hijack Excess Buydown cover, for clients who were insured at Senate. We now offer basic/non-hijack & hijack excess cover - for any transit policy, placed with any Insurer on any type of transit cover. What does it cost? Any sum insured amount can be requested (subject to a maximum of R150,000) with premium calculated at: Basic/non-hijack excess: 0.35% of the requested sum insured. Low risk commodities only hijack excess: 0.35% of requested sum insured. Including high risk commodities hijack excess: 0.55% of requested sum insured. Please note that there is an additional 5% of premium admin fee applicable. How are premiums calculated? Cover applies on a specified vehicle basis, with the monthly premium calculated by applying the applicable rate to the required sum insured. For example: if a client wanted R15,000 basic excess cover & R25,000 low risk hijack excess cover for his one truck's loads, premium would be: R15,000 @ 0.35% = R52.50, plus R25,000 @ 0.35% = R 87.50; total = R140.00 plus 5% admin fee = R147.00 premium per month. What is the difference between the low & high risk hijack excess cover options? The Hijack Excess Buydown cover is divided into two options, allowing for a cheaper rate for those clients not transporting high risk loads. The low risk only option covers all goods except : alcoholic beverages, electrical goods, cell phones and accessories, tyres, cigarettes, tinned fish, pharmaceuticals, copper, aluminium, footwear and clothing. The high risk option includes all of the abovementioned types of goods. Is there an "inner excess" applicable? There is no inner excess, however the total claim must exceed the client's excess under his main transit policy. The Excess Buydown policy will not respond where a claim has simply fallen within the excess of the main transit policy. This is because typically it will not be cost effective to appoint an assessor for an Excess Buydown claim. We will be relying on the Insurer of the main transit policy to have evaluated the claim, accepted it as a claim in terms of the main transit policy, & have processed a claim adjustment & payment. How are premiums collected? All Excess Buydown premium collection is done by Senate's own monthly debit order facility, even if the broker is a credit/I.G.F. broker. Premiums are collected on the 10th of each month for that month, with 20% commission paid to the broker on the 15th of the following month. How are claims handled? If the Insured has his main transit cover at Senate, the Excess Buydown claim settlement will be at the same time as settlement of the main transit claim. If the Insured has his main transit policy with another Insurer, we will initially need to be faxed the completed Excess Buydown claim notification form, & will thereafter require a copy of the claim adjustment letter of the Insurer of the main transit policy. How do I incept cover? You simply need to fax through a completed Excess Buydown confirmation form, clearly indicating the required inception date & amount of cover required. Should you have any queries, please do not hesitate to contact one of our underwriters at tel: 012 663 1004 or fax 012 : 663 1518. View the policy wording