30 Questions
Who is responsible for the disposal of motor salvage?
The Insurer-approved salvage agents on behalf of the Insurers
What is a condition for a salvage retention?
The Insurer's approval
In which case is the insured entitled to the ownership of the salvage?
Never, according to the policy
What happens when the sum of the insured amount and the actual salvage value is less than the market/retail value of the vehicle?
The insured retains the salvage
Who is responsible for providing the Registration certificate for the old vehicle?
The Financial institution
Where is the Buyback option available from?
The salvage agent
What should be estimated if a repudiation may be successfully challenged?
The probable total cost of the claim
When estimating a SASRIA claim, what should be done?
Retain the estimate until SASRIA admits liability
What happens to the estimate when an Ombudsman claim is finalized?
The estimate is amended to reflect the total amount of transactions processed
What should be included in the estimate for an Ombudsman claim that is not covered under the policy?
The full estimate of the claim plus the OSTI fees
When should salvage income be considered in the estimate?
Never, as it is not allowed
What happens to the estimate when a provisional ruling is received from the OSTI?
The claim is immediately re-estimated to reflect the settlement amount
What type of document is required for interim payments on claims where cover is confirmed and liability is admitted?
Provisional Agreement of Loss document
What is the primary reason for repudiation of a claim?
The claim does not meet the policy's terms and conditions for coverage
What is the purpose of a formal repudiation letter?
To outline the policy provisions that were breached
What is the next step if an insured disputes a repudiation?
The insured can engage with the insurance company directly to dispute the repudiation
Who can reject a claim?
The insurer
What is the name of the document used when a claim is settled on an ex-gratia basis?
Ex-Gratia Agreement of Loss document
What happens to salvage that has no value?
It is disposed of by the salvage agent and PSG is informed.
Why is it important to follow up on salvage?
To ensure timely receipt of salvage income.
What is the principle of average?
A principle that requires insurers to pay a proportion of the claim amount based on the level of under-insurance.
When may an insurer not apply the principle of average?
If the client is within a 10% margin of under-insurance.
What type of claims involve situations where an individual faces a claim or demand for damages from a third party?
Third-party liability claims
Who is responsible for causing harm to someone else or their property in third-party liability claims?
The insured
What is a requirement for insurers to collect and process personal data?
Specifying the purpose of data collection
Why must insurers maintain appropriate security measures?
To prevent unauthorized access to personal information
In the event of a data breach, what must insurers do?
Notify affected individuals and the relevant authorities as soon as possible
What right do individuals have regarding their personal information under POPIA?
The right to access, correct, and request deletion of their data under specific circumstances
What is necessary for insurers to demonstrate compliance with POPIA?
Implementing policies and procedures for managing personal information
What is the purpose of POPIA's requirement for insurers to ensure data accuracy and integrity?
To ensure the accuracy and integrity of personal data held by insurers
This quiz assesses your understanding of handling repudiated claims in insurance, including estimating costs and considering the possibility of successful challenges. It covers the necessary steps to take when a claim is not covered by the policy or when there is a chance of repudiation being overturned. Test your knowledge of insurance claim repudiation and estimation processes.
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