Agreed Value is the amount that policyholders value their vehicle at when their policy incepts. This is also the amount they will be paid out less the applicable excess in the event of a total loss. No matter what.
What’s more, HCV does this without the annual rate increases. Compare HCV payouts with a similar product, in the following example:
|Original cost price||R 886 640|
|Assume covered for||R 800 000|
|Example current Market Value||R 683 650|
|Similar underwriting manager settlement||R 683 650 less 10% excess R 615 285|
|HCV Agreed Value settlement||R 800 000 less 10% excess R 720 000|
What is Mechanical Breakdown?
Roadside+Care and Africa Roadside+Care is part of policies if stated on the schedule and covers you for mechanical breakdown. Mechanical breakdown is the failure of the engine, gearbox or differential from a mechanical cause. There are certain exclusions, such as load shifting, non-maintenance services problems, air leaks, tyres punctured or missing, overloading and poor driving habits.
|Type of breakdown||Valid Claim|
|The driver hears a noise in the engine, which is found to be a bearing knock||Yes|
|The differential fails||Yes|
|Driver over-revs the engine and a piston goes through the block||No|
|Driver identifies that the load has shifted and it is dangerous to continue||No|
|Driver needs a forklift to re-load the vehicle in order to continue his journey||No|
|Driver decides to visit a friend who lives up a pass, which is not suitable for trucks to negotiate. He gets stuck in a difficult and dangerous position||No|
|Some fuses blow on the fuse box, which causes a fault code. The driver correctly stops.||No|
|A small air leak starts in the air system||No|
|The driver bursts two tyres on his truck||No|