JVIB News

GLOVE BOX CLAIM GUIDE

You’re driving home after a long day at work, you are sitting in your car listening to the radio reading the bumper stickers of the cars that are ahead of you at the lights hoping that things could move a bit quicker so that you can get home and start dinner or pick up the kids from day-care and so on. The next thing you know your car has been hit from behind. You are at a loss, your mind was a million miles away, you’re shaken from the accident and you can’t for the life of you remember what it was that your insurance company said it needed in the event of an accident, because you didn’t think you would ever need it. Well, you can put your mind at ease. JVIB have put together a “glove box claim guide” which you can put in your car for moments like these. It has all the essential information your insurance company will need to lodge a claim. You can print out the below or alternatively you can contact your friendly broker and they will send one out to you.

At JVIB we take pride in all that we do but most of all in looking after you. We do “Business Without Boundaries”.

Motor Vehicle – Glove Box Claim Guide

UNDER-INSURANCE…WHY SHOULD I CARE?

Chances are that you have heard people talking about under-insurance, seen an article or two in the news papers (usually after a large catastrophe) or your broker has mentioned it to you. So what is it and why should you care?

According to the Australian Securities and Investments Commission (ASIC), based on a report in September 2005, approximately 70% of Australian homes are underinsured. It also affects retail, commercial and industrial properties. So what is it? The dictionary of Insurance Terms defines under-insurance as:

Failure to maintain adequate coverage for a specific loss or damage.
Failure to meet a coinsurance requirement.

Why should you care? You should care because if you don’t adequately insure your property, assets, contents and livelihood for what they are worth, chances are that any premium you may have saved by “cutting corners” will end up costing you more in the long run. For example, if you suffer a total loss or even a partial loss it is likely that you will be deemed to be carrying a percentage of risk and you will not receive a complete pay out. To show the impact of under-insurance, below is an example based on a policy with an 80% co-insurance:

Adjusted Loss = (Declared / Value) x Loss

If you insured for $500,000 and the value at risk was $1,000,000 with a loss of $200,000, the claim would be adjusted as follows.

Adjusted Loss = ($500,000 / $800,000) x $200,000
Adjusted Loss = $125,000 – In this example, the underinsured loss would result in a $75,000 lower payout.

How does under-insurance occur? There are many reasons why so many people are underinsured:

Accumulation – Our possessions grow over time. Have you thought about the cost of replacing your entire wardrobe? How about all of the new tools & equipment you purchase every year to keep up with advancing technology?
Upgrading – We replace our belongings with new ones over the years.
Underestimating the reinstatement costs of buildings (not allowing for the increasing costs of rebuilding and the additional costs of new buildings, heritage issues, etc).
Not allowing for architectural and engineering fees when setting the building sum insured (such advice may be required if the building needs to be rebuilt following a loss).
Underestimating the replacement cost of plant and machinery, especially if sourced from overseas.
Underestimating the costs associated with removing debris.
Having no business interruption insurance.
Setting inadequate indemnity periods for business interruption insurance and not having additional increased costs of working cover.
Underestimating the replacement cost of expensive electrical equipment.
Not reviewing sums insured and ensuring that they are up to date year after year.

So what can you do to prevent it? Here are five things to consider^:

Understand your policy. Is your policy for a fixed sum-insured, a sum-insured plus margin for increased costs, or a total replacement policy? Is your policy right for you?
Each year, before you renew your policy, review the replacement value of your property, contents, business interruption, etc and adjust your cover accordingly.
Walk through each room of your property and make a list of your contents and their replacement value. Adjust your cover accordingly and take careful note of policy terms concerning high value items and exclusions.
Check rebuilding costs for your property, to do this you can use web calculators offered by many insurers, or you can obtain advice from a local builder.
If you have renovated or improved your property since your policy was taken out, ensure that you check your insurance to ensure that the value of the improvements will be included.

^ The material contained in this article is designed to provide general information only and is not intended to provide personal or professional advice. Readers should not act on the basis of this material alone without taking appropriate professional advice relating to their particular circumstances. Five things to consider has been adapted from “Consumer Tips, Avoiding Underinsurance. June 2010” from Insurance Council of Australia.

We hope that this helps to give you some insight into the subject of under-insurance. Should you still have questions or want to discuss your policy, give us a call on (07) 4040 4444 or 1800 937 111.

WHY SHOULD I USE A BROKER?

Why going direct may not be the right course of action!

You’re probably thinking, “I am a direct sort of a person, I say what I feel and don’t beat around the bush and should I encounter a problem with a company I will keep going until I get it sorted, even if that means going to the top to get the matter resolved”. However there are times when you really need to assess as to whether going direct is the best course of action for you. Insurance is one of those areas where going direct is not for everyone.

Our television, radio and print media has a field day with the marketing budget spent by direct market insurers. There is nothing wrong with insurers marketing direct it’s all a matter of horses for courses. However as with everything ‘There’s always a price, no matter what’.

The role of a broker is to establish and present the best possible insurance solution for their client…you. A broker represents you, not the insurance company, and acts on your behalf with the insurance company. They have the formal qualifications, training and understanding of the insurance world so that they can guide you through it answering any and all questions you have about how best to cover your insurance needs. They also have the ability to specifically cater for special requirement(s) and or circumstances that you may inadvertently be exposed to without adequate protection or none at all. It is important to appreciate that these comments are generalised however they are very pertinent to all clients whether they be insuring their home, car, business assets or legal liability.

Buying direct from the insurer is restrictive as all the direct market insurers will only sell you what they are able to. In other words ‘take it or leave it’. This is not the case with a broker as they will have a host of insurance companies who they are able to deal with and can locate and present the product which best suits your needs. There are a number of insurers who choose not to deal direct with the public and will only deal through insurance brokers. This is why it doesn’t always pay to go direct as you may very well be selling yourself short on the best possible product for you.

Your broker is also there for you when things go wrong and will assist you with lodging a claim from start to finish, even resolving disputes along the way should they arise. They will also be able to provide interpretation of your policy wording and answer any questions you have. Now that’s reassuring. It is also comforting to know that you are able to speak directly to your broker, every time, and not whatever random call centre operator to whom your call is directed. It is important to have the choice to build a relationship with the person you have chosen to involve in your insurance because essentially, they are working with you to help keep your assets/livelihood safe.

Please do not be mislead, within our profession we do need to work along-side the insurance companies and it is the insurer who pays our claims. Without them we would not have a product to sell. The simple fact is that relationships are very important and whichever way you decide to go, whether it is direct or through a broker, you need to ensure that you are comfortable with your decision.

Remember "With insurance you only get one chance before the event so we need to make sure we have it right"

DO YOU HAVE THE RIGHT COVER?

In today’s world there are so many things that we need to budget for, home loan, car loan, credit cards, groceries, petrol, holidays, phone bills, electricity, the list is endless. This is often the reason why we all make excuses not to factor in one of the most important bills, life insurance. Let me ask you a question, do you have life insurance? If you don’t, perhaps you should re-consider. If you do, that is fantastic. It probably gives you a great sense of reassurance knowing that if something went wrong your family would still be able to continue the lifestyle it is used to, however do you have the right level of cover? Have you considered Trauma cover?

Approximately 2 in 5 (or 40%) men and 1 in 4 (or 25%) women have the chance of suffering a trauma event between the ages of 30 and 64. You could be thinking that you have enough cover through your superannuation, however most of these policies don’t cover trauma.

Before you say “no I don’t need this, my cover is fine just the way it is” or “no, I still don’t see why I need life insurance”, did you know that:

It has been estimated that 1 in 3 women will be diagnosed with cancer before the age of 85. ^
About 88% of stroke survivors have to be cared for at home and most will have a disability. ^
The death rate from coronary heart disease has fallen since the 1970s due to lower frequency of heart attacks occurring and improved survival rates. The age-standardised coronary heart disease death rates fell by around 45% for men and 44% for women between 1996 and 2006. ^

So what is Trauma cover? Trauma is first and foremost about survival. Australians are suffering an increasing incidence of cancer, heart disease and stroke, however due to advances in medical science; we now have a greater chance of surviving a serious medical condition.

Traditionally trauma insurance provided cover for out-of-pocket medical expenses but funds are now more likely to be used for:

Repayments or reduction of personal and business debt
Lifestyle requirements, such as household modifications
Emergency funds for short term unforeseen expenses
Funding for an additional income stream to meet personal/family expenses

Life insurance is one of the most important policies you will ever put in place so it really does pay to do it properly. If you would like to know more about trauma cover, review your current policy or inquire about a new policy, please don’t delay. Call Wayne or Matthew Zaccour today on (07) 4051 5333.

Matt & Wayne Zaccour are authorized representatives of
Millenium3 Financial Services Pty Ltd ABN: 61 094 529 987 ASFL: 244252
Unit 7/50 Borthwick Ave Murarrie QLD 4172

^ Australian Institute of Health and Welfare and Australasian Association of Cancer Registries, Cancer in Australia: an overview, 2008, Canberra, 2008. AIHW: Senes S 2006. How we manage stroke in Australia. Australia Institute of Health and Welfare, September 2002.

STRATA – THINGS YOU SHOULD KNOW

We know that the subject of Body Corporate and Duplex Ownership can cause some confusion. Perhaps you have purchased a property not knowing all of the rules & regulations involved with owning a “strata titled” property. Don’t despair; we have put together a list of some of the most frequently asked questions that we have encountered and these will hopefully help you get a better understanding. To view click here.