When an insurance scenario reflects a “Wrong Turn” Movie!

Most of us have seen the movie [or one from the series of movies] titled “Wrong Turn”. Those who have not might recognize the movie title “The Perfect Storm”.  When a broker recently told me of a true insurance case scenario, I had to reflect on these instances where everything goes wrong and the insurance cover simply does not cover all the scenarios and losses the client experienced. Let me share this scenario:

Factual Scenario: How well are you covered for this incident?

A female client drive to her home in Rivonia and spotted a very nice Mercedez-Benz behind her. She assumed it might be her neighbour who has a similar vehicle. The did not expect any abnormality or criminal intent. As she got to her driveway 2 armed robbers jumped out of the vehicle, tapped a firearm against the window and forced her to get out of the vehicle. She was struck in the face and her jewellery, handbag, cellular phone, bank cards and car keys were taken as they returned to their vehicle and sped off.

The total damages were estimated at R92, 300 and the amount of R16 200 was paid as a settlement by the insurer.

The insurance policy and payments received

• Jewellery was not specified and the claim could only be submitted under the All Risks Section to the limit of R12,600. This includes the handbag and contents thereof and cellular phone [which was also not specified]
• A claim could not be submitted under the household contents as the incident occurred in the driveway, outside of the home that is not risk bound anymore.
• The locks and keys were only covered up to an amount of R2500. The loss of keys cost the client R18,000 and the amount received is R2500 as that was the limit in the policy schedule at the time of the incident.

The locks were not damaged – hence no payment from the insurer. The client feared that the criminals might now have access to her vehicle and knows her place of residence. [They could even get into and hide in the boot of her vehicle and then attack her]

• The client might have the option to change/ replace the locks but the cover for locks is limited to R2500
• The scratched window was replaced.
• Trauma cover was paid to the amount of R2000
• The cost of ID cards, bank cards, sim card was paid under the General Liability section

This raises a very important question which all consumers should ask – What is my REAL risk and for what are we covered?

• It is important to be aware that limits can be increased  even though it might also add a bit to the cost of the insurance premium
• We should NOT neglect to specify specific items of value such as cellular phones and jewellery!
• Are you aware of the cost to have a car key made and coded and should you perhaps raise the amount payable for lost car keys?

Also view:

Lost Car Keys, Vehicle Security and Car Insurance