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!
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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
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