1 The average clause (As quoted from the AIG Multi Armour Policy Wording)“If the property insured is, at the commencement of any damage to such property by any peril insured against, collectively of a greater value than the sum insured thereon, then the insured shall be considered as being their own insurer for the difference and shall bear the rateable share of the loss accordingly. Every item, if more than one, shall be separately subject to this condition.”

The calculation for this is as follows:
Sum insured / Value at risk multiplied by the value of the loss
For example: R200,000 / R300,000 X R100,000 = R66,666.67

2 The alarm warranty
(As quoted from the AIG Multi Armour Policy Wording): “In respect of any premises stated in the schedule to be subject to this condition at which a burglar alarm is installed it is a condition precedent to the liability of the company and warranted that

  • The burglar alarm installed at the premises shall be fully operative whenever the premises are not open for business unless a principal, partner, director or employee of the insured is on the premises
  • Such alarm shall be maintained in proper working order but the insured shall be deemed to have discharged their liability therefore if they have maintained their obligations under a contract with the suppliers or servicing engineers of the alarm

This insurance shall not cover loss of or damage to the property following the use of keys of the burglar alarm or any duplicate thereof belonging to the insured unless such keys have been obtained by violence or threat of violence to any person.

3 Power Surge and Lightning Strikes Warranty
(As quoted from the AIG Multi Armour Policy Schedule) It is warranted that all Devices, Equipment and Systems comply with S.A.B.S., International Standards IEC or similar Authority approved requirements for protection against Lightning and Power Surge, being installed and maintained in accordance with the manufacturer’s instructions. There is no cover as a result of load shedding.

4 Prevention of loss
The insured shall take all reasonable steps and precautions to prevent accidents or losses.

5 Deductible structures
It is important to note the deductible (excess) structure per section of your policy. This can be found on your AIG commercial policy schedule. This has changed with effect from the 1st of July when the free covers were added to your policy. It is important to note further that APECH has provided for one motor deductible per year for each shareholder for the amount of R1,500. This has been incorporated into the monthly insurance premium subsidy per shareholder.