SAVVA Handbook
Section 9


This section covers all Insurance matters arranged by SAVVA. The first portion is Motor Insurance on member’s vehicles and the second is the Public Liability Covers. The appendices follow thereafter. At the end of 2000 CGU Insurance, previously Commercial Union was taken over by Mutual and Federal Insurance Company Ltd. Therefore Mutual and Federal is shown as the Insurer in this Handbook.


9.1. SAVVA has in place an insurance scheme with Mutual and Federal, Port Elizabeth Branch for the coverage of vehicles that are over 20 years old and which belong to club members. Cover is in accordance with a standard motor comprehensive policy with an endorsement for the SAVVA Collectors Vehicle Scheme which restricts the use of the vehicle and who may drive the vehicle. As a result the rates are discounted substantially and are extremely low. Some conditions may be changed to widen the use and cover at additional premiums.


9.2. ARRANGING COVER: It is in the interests of SAVVA and members to conserve the scheme by not allowing substandard risks to be placed on the scheme. The rates are extremely low compared to what is generally available in the open market. Should clubs be aware of any adverse features of the vehicles owned by a member and the general use of the vehicle these should be brought to the attention of the Insurance Portfolio Holder. Cover can only commence when a fully completed Application and any other documents are in possession of the Company or the Portfolio Holder with the required premium paid.


9.2.1 WAITING PERIOD: It was resolved at the Annual General Meeting in 1998 that from the rising of the meeting no person would be accepted on the scheme unless they had been a member of a club for a period of at least three months. Secretaries should note on the Application the date of joining when issuing the Application to the member. Exceptions may be made at the discretion of the Portfolio Holder.


9.3. AVAILABILITY OF COVER: Many people mainly senior citizens and younger people join the movement in order to secure insurance cover, which is not generally available to them, and at substantially lower rates than on offer elsewhere, particularly for the older vehicle. This practice should be discouraged as the vehicles are generally in use on a daily basis and could well be the owner’s sole means of transport. Whist the additional membership is tempting for clubs, it places the scheme at risk, which could result in increased terms for all. A facility is in place to cover vehicles of non-members or potential members but this does not form part of the scheme. All such enquiries should be referred to the Insurance Portfolio Holder. Those having to wait the three months can now be covered for twelve months but not at the low rates enjoyed by members.


9.4. BENEFITS TO CLUBS and SAVVA: The scheme is placed directly with Mutual and Federal, Port Elizabeth through the Insurance Portfolio Holder. Each club has an “Agency” number that enables the Portfolio Holder to monitor the income and results for the club and the scheme as a whole. The agency commission accrues to the Portfolio Holder to cover administration cost. SAVVA shares the Policy Charge equally with the clubs. The Insurance Portfolio Holder makes payment annually. The Insurance Portfolio Holder operates like a broker in the interests of the scheme and members.


9.5 DOCUMENTATION / QUOTATION / APPLICATION: The SAVVA Collector’s Vehicle Policy is only available to paid up members of clubs in good standing.


9.5.1 A quotation is available using an Application Form or via the Web site from the Insurance Portfolio Holder.


9.5.2. The Application Form is only available from club secretaries and when the member has completed it, the club secretary should counter sign same so as to confirm the contents are complete and accurate. In addition a Quotation / Application form is available on the Web site that must be countersigned by the Club Secretary.


9.6. SCOPE OF POLICY COVER: A standard Motor Comprehensive Policy is issued to each member subject to specific SAVVA Use Clauses which spell out the use of the vehicle and who may drive it.


9.6.1. Cover is generally purchased for Full Comprehensive but an alternative is available for Balance of Third Party, Fire and Theft at a slightly lower rate. Vehicles that are off the road or under restoration may be covered on either basis as “laid up” at a discounted rate.


9.7. CATEGORY OF VEHICLES COVERED: Vehicles to be covered are broken down into three categories based on age of vehicle and use as follows;


9.7.1 CATEGORY A: This is in respect of all vehicles including motor cycles built and registered before the 31st December 1960. Provided they are not the owner’s sole means of transport and / or not used on a daily, or weekly basis. (See Endorsement and Letter)


9.7.2 CATEGORY B: This is in respect of all vehicles including motor cycles built and registered between 1st January 1961 and older than 20 years on a sliding scale may be covered. Provided they are not the owners sole means of transport and / or not used on a daily or weekly basis. Later vehicles may be accepted at the discretion of the SAVVA Insurance Portfolio Holder if they are part of a collection.


9.7.3 CATEGORY C: This is in respect of all vehicles that are used on a daily basis as the regular transport of the owner but excluding business use. Only Vehicles and Motorcycles older than 20 years may be covered.


9.8. OTHER UNDERWRITING CONSIDERATIONS: A distinction is made to the rating on vehicles that are the sole means of transport of the member or spouse. The excess in the event of a claim is also much higher.


9.8.1. Laid up vehicles are subject to a restrictive endorsement.


9.8.2. The Rating Guide is available from the broker.


9.8.3. All vehicles to be covered on the road must be registered and licensed in the name of the Insured.


9.8.4. Where an insured owns and insures 5 or more vehicles “In use” within any category above a discount of 10% will be allowed.


9.8.5. Where a genuine collector has more than 5 vehicles insured and in use and purchases a vehicle later than 20 years old, special consideration will be given to adding the vehicle to the scheme provided it is not used as daily transport.


9.8.6. The Company may accept or reject a risk based on normal underwriting considerations and practice or may impose terms based on the details of the risk applied for. The Company may also require satisfactory proof of ownership of a modern vehicle when a single later model vehicle is to be insured.


9.9. BASIS OF VALUATION OF VEHICLE: The cover is on an “Agreed Value” basis but in the event of a major loss the insured will need to substantiate the value of the vehicle. The sum insured must be the reasonable full market value of the vehicle as partial cover is not available. The cost of restoration may be too high in the case of some vehicles. Underinsurance may result in the vehicle being written off in the event of a major claim where the cost of repair is in excess of 70% of the sum insured. The policy is also subject to a Spare Parts Clause. Conversely the company does not undertake to pay the Insured Value if this is considered excessive for the vehicle concerned. It may refuse to cover a vehicle under either circumstance.


9.9.1 Condition of Average. The policy is subject to average. Should the vehicle be insured for a value lower than the marketable value the insured will be considered their own insurer for the portion of the underinsurance in the event of damage to the vehicle. E.g. Market value of vehicle R100,000; Insured value R75,000; shortfall is 25%; any claim will be reduced by 25% then excess deducted.


9.10. ACCEPTANCE OF RISK and BINDING OF COVER: Cover commences on receipt and acceptance by the Insurance Portfolio Holder of the fully completed Application Form and any other documents required with payment. In the case of “daily used” vehicles the company will require the completion of a full Motor Application Form which will be provided.


9.10.1. In addition to the Application the Company may require other documentation to be provided before cover commences. These would be all or some of; Copy Vehicle Registration Certificate, Dating Certificate, Photographs, Medical Certificate, Copy Security Certificate and Proof of No Claims history from previous insurer.


9.11. CLAIMS: Claims or potential claims should be reported as soon as possible to the SAVVA Insurance Broker but claim forms are available from any branch of the Company. The fully completed Claim Form countersigned by the Club Secretary or Chairman and the Repair Quotation should then be submitted to the Portfolio Holder In the case of rare or older vehicles the Company will expect the owner to assist in the obtaining of replacement or repair of parts. A motor Assessor may be appointed by the Company to assist with the agreement of repairs. Parts that need to be imported are covered and transport cost by sea freight will be paid.




9.12. POLICIES IN FORCE: The policy number is 3882934 issued by Mutual and Federal. There are two sections to the Policy that provides the cover required, General Public Liability and Contingent Liability.


9.12.1. The GENERAL LIABILITY section covers legal liability in respect of accidents causing damage to third party property or injury to the public for which SAVVA and/or the Club could be held legally liable due to actions of a member, the Club or SAVVA. Cover is provided for the following:


· General, Premises and Tenants

· Food and Drink Poisoning

· Displays of any kind on own property, public areas or in a building

· Gymkhanas and driving tests in an area not accessible to the public but excluding speed type event and motor liability risks.


9.12.2 The CONTINGENT LIABILITY section covers legal liability for the use of a motor vehicle where liability could attach to SAVVA and / or a club as a result of a motor accident on a Fun Run or Club Outing which causes damage to a third party vehicle or property due to negligence on the part of SAVVA or the Club.




· Limit of Liability any one accident R10,000,000

· Limit any one period of insurance R10,000,000.

Can be re-purchased/topped up

· Legal Defense Costs R100,000

· Excess payable each and every claim R2,500

· Fire and explosion R1,000,000


9.12.4 EXCLUSIONS. Covers do not include the following:


· Member to member liability

· Damage to property of a Member, Club or SAVVA or which is under the Custody and control of the insured.

· Liability for punitive or exemplary damages or fines awarded in a court of law.


9.13. ADDRESS and contact details for FNB Brokers: See Insurance Page




This page revised 2011/10/13


Southern African Veteran and Vintage Association