Clients are kindly reminded to continuously review and update their sum insured value(s), to ensure that they reflect the market price all times. This has been especially necessitated by the prevailing economic environment, which is inflationary and characterised by price fluctuations. Failure to update sum insured value(s) may result in the application of average in the event of a claim.
Clients are also advised that the initial value recommended by CBZ Insurance valuers and assessors is solely for the purposes of determining the sum insured at the point of underwriting; which value should be continuously updated by the insured in terms of the policy to avoid application of average.
Average condition arises when your asset(s) at claims stage is found to be underinsured resulting in the insurer paying a rateable proportion of the claim. As an example, if Client takes out insurance worth ZWL$10,000 for their motor vehicle when the market value is worth ZWL$20,000. In the event of a claim of ZWL$2,000 the insurer will pay ZWL$1,000.
Please contact our nearest CBZ Branch Resident Insurance Consultant or any of our brokers to review sum-insured values or discuss alternative options.