Your agricultural clients own a wide variety of vehicles, implements and harvesters, which are subject to a lot of daily wear and tear – especially tyre damage. Potholes, fields and corrugated roads can often cause tyre damage so it’s important that clients know exactly what cover they enjoy under their agricultural insurance policy, and whether they need cover extension such as Santam Agri’s extended cover for tyres.
Understanding cover exceptions
Certain elements of a policy that covers agricultural vehicles may sometimes be overlooked so here the the details to give special attention to. Under the motor section of a client’s agri policy, consider the following exceptions to sub-section A (loss or damage) where the company shall not be liable to pay for:
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Damage to tyres by application of brakes or by road punctures, cuts or bursts: The intention of this exception is not to pay for the gradual deterioration of tyres due to the everyday usage of brakes or damage to tyres caused by cuts, bursts or road punctures.
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Damage to springs/shock absorbers due to inequalities of the road or other surface or to impact with such inequalities: If a person regularly drives on a corrugated road, which is also riddled with potholes, it can be expected that the vehicle’s shock absorbers will be damaged gradually and the policy will not respond. If, however, road surfaces are normal and a vehicle’s shock absorbers are damaged by a pothole in the road – a once off sudden and unforeseen event - the policy should respond.
Tyre damage due to impact
Damage to a tyre caused by impact with a pothole, expansion joint or manhole cover in the road surface will be approached in the same manner as an impact with a kerb stone. The damage will be considered to be as a result of an impact and the policy should respond. Damage to the rim is not a prerequisite and damage to a tyre alone will be covered in terms of the policy.
It is important to note that on certain vehicles, for example all-wheel drive and high performance vehicles, more than one tyre might need to be replaced when only one tyre is damaged. In these cases only the damaged tyre will be covered in terms of the policy.
What Santam Agri extended cover for tyres (agricultural tractors, harvesters and agricultural implements) includes
This extended cover applies to damage to tyres of agricultural tractors, harvesters and agricultural implements. The cover under this section of the policy is extended to include total loss of and irreparable damage to the tyres of the vehicles mentioned above as a result of damage caused by any unseen or concealed object whilst on the road or other surface provided that:
(a) The insured shall at his own expense have all damage and wear and tear assessed by one or more reputable tyre retreaders/suppliers to assess whether or not the tyre can be repaired;
(b) The corresponding, undamaged tyre in the set of tyres will also enjoy cover, but only if the vehicle manufacturer deems it necessary or required;
(c) The insured is responsible for the first amount payable of 10% of claim, with a minimum of R500;
(d) Wear and tear at the time of the loss or damage is not covered in terms of this extension.
The insurer’s liability shall not exceed R30 000 or the amount stated in the schedule, whichever is the higher, in respect of any one event.
Email agriculture@santam.co.za if you have any queries about Santam agricultural insurance products. You can also download our Agri Transport brochure to send to clients or use during your assessment.
We highlight many features of agricultural policies in the Intermediaries section of our blog.