Plant Equipment and Hire March 2019 | Page 23

BUSINESS prove the value of the vehicle at the time of a total loss, including that maintenance was done regularly. Visser suggests that suppliers can also help with accurate replacement value. Specify those attachments and accessories! www.plantonline.co.za Cropping cover could be costly Another common issue is only insuring these types of vehicles against one Visser says, “It’s important to note that while insurers may be able to recommend someone, they do not cover the costs of the valuation being conducted. A good option would be to get the valuation from the manufacturer or a dealer who sells the same types of vehicles. The cost would be for your own account. The main benefit is that you will get an accurate valuation of your specialist vehicle, as well as all accessories and other assets.” Visser stresses that replacement costs can vary with exchange rates and parts can be expensive too, or take time to arrive, so it can be very difficult to put the right amount of cover in place without some professional guidance. “It is recommended you get a valuation from the manufacturer of your vehicles or to request a private valuation from an independent party to be sure you don’t fall victim to underinsurance,” advises Visser. An example of a factor that could be considered is if a client has a 2010 vehicle and the valuation states that the condition is good and maintained, then the valuation would reflect this. However, it is not an agreed value, so the client would have to If a harvester is used to harvest cotton, for example, it uses different equipment to one that harvests sunflower seeds, so depending on what you use your specialist vehicles for, you will need to factor in all and any accessories you use as well, and some may require specification. A good example that can impact insurance in any industry, is a GPS system. If this is not specified, it will not be covered, even if the vehicle is stolen. Tyres for specialised vehicles are also very expensive if tracks are used instead of normal wheels, so these must also be included. Consider, too, if these vehicles have special parts that might take some time to order for replacement, as cover can be adjusted to help you, should you have delays in being able to use your vehicle. “You need to make your insurance adviser aware of any special parts or accessories that might add value or be difficult or costly to replace, so that all information is disclosed to the insurer and so that cover can be comprehensive. By providing thorough disclosure to your insurer, you will get the cover you need and the premium that reflects adequate replacement value,” says Visser. He adds that you should make sure that any updates you pass on to your adviser have been made and processed correctly by also checking your own policy schedule. type of cover, such as fire at the farm on which they are generally kept. If such a vehicle is involved in an accident or if a third party makes any claims, unless you have comprehensive insurance, your claim will be repudiated. It might seem obvious, but you need to check that you have comprehensive cover and that where you use a vehicle is noted in your policy, be it one location, or several. This is not only because these types of vehicles are so expensive to repair or replace, but also because they can cause such extensive damage due to their size. Third-party liability cover is also essential as you never know who might try to claim against you. If some vehicles are used on different farms that you own, consider situations such as using a tractor to cross any public road to another farm — these trips need sufficient cover as well. Failing to factor this in could mean repudiation for any claim for damages to equipment in transit. If you use some of the equipment on third-party property, and not only your own property, also make sure this is disclosed to your insurer. Rounding up some final reminders Visser highlights that if you are still paying off a vehicle, comprehensive cover is non-negotiable to negate potential expensive losses. Another tricky issue that leads to repudiation is when these types of vehicles are insured in the wrong section of a policy. They must be insured under the correct section to be valid, and it is wise to check with your adviser that your policy schedule reflects this accurately. Get a jump-start on the year ahead and make sure your specialist cover is parked properly for the duration. Make your insurance adviser aware of any special parts or accessories that might add value or be difficult or costly to replace, so that all information is disclosed to the insurer and so that cover can be comprehensive. MARCH 2019 21