Frequently asked questions

Car insurance

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    What is the difference between the retail and the market value of my vehicle?

    Retail value is the likely selling price of the vehicle by a motor dealer to a purchaser. This is the possible value that a motor vehicle 'retails' for if you were to buy it from a dealership. The retail price is the closest value to the replacement value or cost of your insured motor vehicle.

    Market value, when referred to in motor insurance, is the average between the likely trade and retail values of a vehicle.

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    Does my premium decrease in line with the value of my vehicle?

    The annual premium review takes into account the depreciated value of the vehicle. However this is not the only factor which determines the premium. The majority of claims paid are for accidents and not write-offs or stolen vehicles. The cost of repairs and parts constantly increase with inflation. We thus need to increase our premiums as it costs more to repair vehicles.

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    Why do I need to install extra security devices in my vehicle?

    Vehicle theft is an unfortunate but very real part of everyday life in South Africa. We take a preventative approach to the problem by requesting the installation of quality anti-theft devices in order to minimize or prevent vehicle thefts and hijacks. The initial few hundred rands outlay is worth the investment... ask anyone who has had a vehicle stolen. We know that this kind of preventative approach has yielded results for us and our clients.

OUTbonus

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    What is the OUTbonus?

    The OUTbonus is a cash bonus that rewards you for not claiming. Should you not claim for three consecutive years, you will 10 % of your premiums paid in this period at the end of the third year in real money, to spend to your heart's content. Should you not claim for a further two years you will receive a set percentage of the premiums paid within this period at the end of the fifth year. Thereafter for each consecutive claim-free year you will receive a set percentage of all your premiums paid within the year at the end of each year.

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    What happens to my OUTbonus if I claim?

    Your OUTbonus is forfeited should any claim be settled. The three year cycle however starts immediately once again and your OUTbonus will be paid once the three year claim-free cycle is completed. Making use of Help@OUT will not affect your OUTbonus.

Building insurance

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    How do I calculate the replacement value of my building?

    We cover the buildings on a new for old basis. This means that we replace old, damaged items with new ones following a claim (e.g. replacing a burst water heating system with a new one). In calculating the replacement value of your property, we take into account the costs to demolish damaged structures, remove the debris, payment for professional and municipal services before any new construction can start. Coupled with these costs are the actual costs for materials and labour. These costs, like many others, are determined by the building industry. We update these values on a regular basis for your convenience. We also update the replacement costs of the buildings annually as part of the review of your facility.

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    How do I determine the value of my contents?

    We can provide you with an inventory to assist you in listing the contents and determining their values. We also have specialist advisors who can assist you with any queries you may have regarding this.

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    Should I cover these goods for their replacement value?

    Yes. We insure items on a new for old basis which means that when your items are stolen, we’ll replace these with similar or brand-new (where appropriate) items. So, you will need to make sure your goods are insured for their current replacement value.

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    What happens if I undervalue my contents?

    You then carry part of the risk should there be a loss. For example, if your contents are covered for N$100 000 but they should be covered for N$200 000, and you lose N$20 000 worth of contents in a burglary, we will settle N$10 000 and you will be responsible for the remaining portion of the loss. (This is the principle of average).

Claims

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    Why do you ask so many questions at claims stage?

    We ask the same questions you would traditionally fill in on a paper-based claim form with another company. We also obtain quotations for items being claimed for on your behalf and therefore need correct information in order to cost the claim on the correct replacement make and model. All the information obtained assists us in validating the claim and thereby speeding up the process.

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    Can I use my own service provider?

    The choice of any service provider (e.g. panel beater) rests with us and we have established a selected panel of service providers whose work is guaranteed. You can elect to choose your own repairer however we cannot guarantee the quality of their workmanship.

Documents

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    Do I need to sign documents?

    There is no paperwork to fill in, since all calls are digitally voice recorded, you can therefore take out cover, make amendments to your cover and lodge your claim telephonically. The recording ensures the safety of the information you provide and offers protection to both parties.

Excess payment

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    What is an excess?

    An excess is a specified amount that you are liable to pay in the event of any claim being settled. For example, if you are in an accident and the damage amounts to N$20 000, you will only need to pay the excess amount as stated on your schedule to the relevant contractor once your car is repaired. OUTsurance then pays the difference to the contractor.

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    What is a fixed excess?

    A fixed excess means that no matter what the value or nature of the claim, you only pay the agreed excess amount. OUTsurance offers you a fixed vehicle excess from as low as N$1 000 which means that whether your car is damaged in an accident, written-off, stolen or hijacked you will only pay the N$1 000 excess. There are no hidden 'surprises' when you find that you are liable for any higher excesses. Unlike OUTsurance, many insurers charge you a percentage of the claim, so if your stolen vehicle's replacement value is N$100 000, and the excess is 7.5% of the value, then you will have to pay the first N$7 500.

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    If I'm not at fault in an accident, why must I pay an excess?

    You are always liable for the excess since we do not place blame as criteria in order to determine whether you need to pay an excess or not. We do however immediately initiate the excess recovery process from the guilty party and will refund your excess if we are successful with the recovery.

Premium payments

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    Can I pay my premium via the Internet?

    No, we only work with debit order payments. This is so that we can ensure that your premiums are allocated on time and to avoid a delay in assisting you on any incidents.

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    I cannot pay this month, but will pay double next month - will I still have cover?

    Your premiums are paid in advance so if you pay on the 1st of the month, you have cover for that month. We can collect your premium on any set day you choose within the month and we will collect your premiums on that day each month. We cannot double debit you for premiums that should have been paid in the previous month. If your premium is not paid for that month, you will not be covered.

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    Does my premium decrease in line with the value of my vehicle?

    The annual premium review takes into account the depreciated value of the vehicle. However this is not the only factor which determines the premium. The majority of claims paid are for accidents and not write-offs or stolen vehicles. The cost of repairs and parts constantly increase with inflation. We thus need to increase our premiums as it costs more to repair vehicles.

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    Will my premium increase after a claim?

    No, it will not. Your premium is guaranteed for a year. Your cover is reviewed annually and the premium is adjusted on your portfolio as a whole, taking into account your claims experience.