Original Vehicle Value Gap Cover

The OVVGC Benefit is calculated as follows:

Reference Price
LESS

The greater of:
• The Retail Value* of Your Vehicle at the time of claiming; or
• The amount payable to You based on the Underlying Policy plus any excesses that apply to the former and any other amounts deducted by the Underlying Insurer which is not covered in terms of the Underlying Policy **.

The graph below provides an illustration of how Your expected settlement might look like over time
(example – Image 1).

* The Vehicle Retail Value for the first twelve (12) months of this policy is defined as the Reference Price.
This means that there is no benefit payable in the first year of Your policy; importantly, new vehicles are subject to new for old replacement in its first year of cover on comprehensive motor policies.
** Amounts deducted by the Underlying Insurer which is not covered in terms of the Underlying Policy includes, but is not limited to premium refunds, cash backs, towing, salvage, storage, and release fees which may create a short payment from Your Underlying Insurer; this includes any shortfall emanating from You accepting an offer of insurance settlement of less than the Retail Value of your Vehicle.

The following benefits are sold as optional top-up cover and cannot be bought separately from the OVVGC Benefit. Importantly, the below benefits will only respond in the event of the OVVGC Benefit being triggered.

Optional top-up cover: Credit Shortfall Benefit
In the event of Your vehicle being financed, the Credit Shortfall Benefit is intended to enable You to repay your outstanding loan where the combined pay-out of Your comprehensive motor policy and Your OVVGC Benefit is less than the amount owed to the finance house.

The Credit Shortfall Benefit is calculated as follows:
Outstanding loan amount
LESS

The greater of:
• The Retail Value* of Your Vehicle at the time of claiming; or
• The amount payable to You based on the Underlying Policy plus any excesses that apply to the former and any other amounts deducted by the Underlying Insurer which is not covered in terms of the Underlying Policy **.
LESS
The OVVGC Benefit as per above

The graph below provides an illustration of how your expected settlement might look like over time
(example- Image 2).

* The Vehicle Retail Value for the first twelve (12) months of this policy is defined as the reference price. This means that there is no benefit payable in the first year of Your policy; importantly, new vehicles are subject to new for old replacement in its first year of cover on comprehensive motor policies.

** Amounts deducted by the Underlying Insurer which is not covered in terms of the Underlying Policy includes, but is not limited to premium refunds, cash backs, towing, salvage, storage, and release fees which may create a short payment from your Underlying Insurer; this includes any shortfall emanating from you accepting an offer of insurance settlement of less than the Retail Value of Your Vehicle.

In addition to the aforementioned, Your Credit Shortfall Benefit does not include:
• Any instalment and/or interest in arrears before the Date of Loss.
• Any additional finance charges.
• Early settlement penalties.
• Any other amounts refundable to You; or
• Any legal costs you owe the credit provider.

If the Insured Vehicle is the subject of an instalment sale agreement that includes a residual or balloon payment, the maximum amount we will pay is the credit shortfall amount that would have existed if the Insured Vehicle was financed under an instalment agreement without a residual payment, subject to the limits as per Your policy schedule. The credit shortfall will be calculated in the month in which the claim is settled.

Optional top-up cover: Inflation Protection Benefit
The Inflation Protection Benefit is intended to cover you against the overall rising cost of nearly identical vehicles over time.

The Inflation Protection Benefit is calculated on top of your OVVGC Benefit, by increasing the Retail Value of your vehicle at inception, as follows:
• 6% per year, after Year 1
• For a period of 5 years
• Up to a maximum of 30%

The graph below provides an illustration of how your expected settlement might look like over time
(example – Image 3).

Claims pay-outs are subject to the limits and excesses stated in Your policy schedule.

**** Your policy will not respond in the event of Your Underlying Insurer offering to replace Your Vehicle with a new vehicle of similar make and model at the Date of Loss if Your Vehicle is less than twenty-four (24) months old from first registration, and as might be outlined in the former’s policy wording, and whether you accept the offer or not.