Information and Instructions Concerning Domestic All Risks Transit Insurance
6.1. The application for insurance which you are requested to complete is not intended as a definitive document for the description of your effects; it is a comprehensive list of property usually encountered in domestic moves, but you may have goods which are not detailed in the application, or you may have doubt in which section certain items are to be entered. In such instances you should prepare a separate list to add/attach to the application or if you prefer you may compile a detailed valued inventory. It must be remembered that any goods not included in the application will be considered as not being insured therefore no claim will be accepted on such unlisted items in the event of loss and/or damage.
6.2. With the exception of motor vehicles, your effects for the purpose of insurance should be valued at the full value which is current costs less depreciation or new replacement value. It is accepted that you may have difficulty in knowing the exact value but you will have a reasonably good idea. Under valuation will result in your not receiving full compensation for any repairs which have to be effected as a consequence of transit damage. The insurers are not unreasonable when it is apparent that an effort has been made to provide reasonably accurate valuations, but any serious under valuation/insurance will result in ‘the application of average’ which means, for example, that if an item is under insured/valued by 50%, the insurers will pay only half of any repair charge incurred. If repair charges on any one item should exceed the declared value, the liability of the insurers will be limited to the declared value less any residual value the damaged articles are determined to have. Should shortages occur the claim settlement will be based on the declared value/s.
6.3. Motor vehicles should be valued at the sound market value in Zimbabwe; that is to say the value for which the same or similar vehicle could be purchased in an undamaged condition. Again under valuation/insurance will result in the application of average.
6.4. The above demonstrates the importance of accurately listing and valuing your effects being relocated. With this in mind you will understand it is not in your best interests to leave the completion of the application and/or valued inventory to someone else.
Note that there are certain conditions and exclusions in this coverage. The precise wording is provided on the final page of the application. Please make yourself familiar with these conditions before you complete your application.
Confirmation of insurance will be provided to you by Biddulphs International once they have received your completed insurance valuation. Please review it carefully when it is received.
Biddulphs International will take all possible precautions to guarantee the safe arrival of your belongings. However, if damage results which necessitates the filing of a claim, please carefully follow the instructions which will accompany your confirmation of insurance.
Under Insurance of your Consignment
Ensure that your property and goods are insured at the correct value at destination. The consequences of under insurance can be disastrous. The Condition of Average applies to the Policy. This means that if, at the time of any loss or damage, the Sum Insured is lower than the true replacement value, the Insurers will only be liable to pay a proportionate amount of the loss.
$ 50 000
$100 000 = 50%
Therefore the settlement is 50% of the amount claimed of $25 000.
$25 000 x 50% = $12 500
As the actual value is double the Value Insured, Insurers are only liable
to pay half of the amount claimed, i.e. $12 500.