Standard Domestic Cover Policy Administration Guide - Lodging of Claims When will a claim become due for payment? How must I lodge the claim? When must I lodge a claim? Is any other documentation required? How long does it normally take before ,your claim is paid? How is the amount of the indemnity calculated? How does the franchise loss affect claims settlement? What is individual first loss, and how does it affect my claim? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . When will a claim become due for payment? Once a cause of loss has arisen in terms of the policy. A cause of loss could either be the insured buyer's insolvency, which is any one of the following events: a provisional compulsory sequestration/liquidation order has been granted against the insured buyer, or the provisional acceptance by the court of a voluntary surrender of his estate, or a provisional winding-up order granted against the insured buyer, or a statutory compromise or scheme of arrangement has been made binding, or a provisional judicial management order has been granted against the buyer. Or, the insured buyer's protracted default, which means: The buyer's failure to pay an undisputed insured debt within six months from the original or postponed due date. Or the insured buyer placed under supervision in terms of the business rescue provisions of the companies act. How must I lodge the claim? Complete a claim form (see link below) and submit it together with all supporting documents.  Click here to view the form (Sample) When must I lodge a claim? In the case of insolvency: Upon receipt of advice of the provisional or final liquidation of the buyer. In the case of protracted default: Within ten days of the date of the final demand, if no response was received from the buyer. In the case of supervision, within 21days of your receiving notification that an insured buyer is under supervision (business rescue). Is any other documentation required? Yes, in our claim form (see link below) you are asked to attach certain supporting documents: copies of statements/ledger cards relating to the previous full year's trading experience with the buyer, circulars received from the liquidator etc, and copies of correspondence with your attorneys including their statement of account for legal fees.  Click here to view the form How long does it normally take before ,your claim is paid? Upon receipt of your claim form (see link below), we will advise you of the date that the claim will become due for payment. Provided that we have all the information necessary for the processing of your claim, we endeavour to send you our proposed settlement within seven days of this date. Complex claims, however, can sometimes take longer. For all claims an E F T will be processed on receipt of the proposed settlement, signed and accepted by you.  Click here to view the form How is the amount of the indemnity calculated? If you suffered a loss in respect of an insured debt (i e one which is fully covered under the policy), we will indemnify you to the extent of the insured percentage of the amount of loss. (The insured percentage is stated in the schedule to your policy). Your share of the loss will thus be: the uninsured percentage of the amount of loss, plus any additional amount owed to you which was not covered under the policy. For example: If the insured percentage under your policy is 80% and you are owed an amount of R24 000 by a buyer on whom you only hold a credit limit of R20 000, then our indemnity would be calculated as follows: Amount outstanding. . . . . . . . . . . . . . . . . . . . . . R24 000 Less: Portion not covered by a valid credit limit . . . R 4 000 Insured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . R20 000 Insured percentage . . . . . . . . . . . . . . . . . . . . . . 80% Amount of indemnity . . . . . . . . . . . . . . . . . . . . . R16 000 How does the franchise loss affect claims settlement? If your policy incorporates a franchise loss, you can only submit a claim if the amount owing to you is more than the franchise loss. Example: If the amount owing (excluding V.A.T) exceeds the franchise loss, the claim will be considered on the full amount outstanding. What is individual first loss, and how does it affect my claim? If your policy incorporates an individual first loss, this amount is the amount which you retain for your own account. This amount will be deducted from the insured debt on the proposed settlement and obviously therefore increases your share of the claim.
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