Glossary

Agreed Value

Agreed Value is the amount that policyholders value their vehicle at when their policy incepts. This is also the amount they will be paid out less the applicable excess in the event of a total loss. No matter what.

What's more, HCV does this without the annual rate increases. Compare HCV payouts with a similar product, in the following example:

Settlement on a total loss of 2007 Mercedes Benz 2535 LS/39 Axor 2 c/c T/T
Original cost price
R 886 640
Assume covered for
R 800 000
Example current Market Value
R 683 650
Similar underwriting manager settlement
R 683 650 less 10% excess R 615 285
HCV Agreed Value settlement
R 800 000 less 10% excess R 720 000
Mechanical Breakdown
What is Mechanical Breakdown?

Mechanical breakdown is the failure of the engine, gearbox or differential from a mechanical cause. There are certain exceptions, such as load shifting, brake problems, air leaks, tyres punctured or missing, overloading and poor driving habits.

Type of breakdown
Valid claim
The driver hears a noise in the engine, which is found to be a bearing knock
Yes
The differential fails
Yes
Driver over-revs the engine and a piston goes through the block
No
Driver identifies that the load has shifted and it is dangerous to continue
No
Driver needs a forklift to re-load the vehicle in order to continue his journey
No
Driver decides to visit a friend who lives up a pass, which is not suitable for trucks to negotiate. He gets stuck in a difficult and dangerous position
No
Some fuses blow on the fuse box, which causes a fault code. The driver correctly stops.
No
A small air leak starts in the air system
No
The driver bursts two tyres on his truck
No