Important Industry news (theft of vehicle)

Theft of vehicles for sale at Motor Dealers (Consignment stock)

Santam Personal and Commercial Insurance Policy – Vehicle Sections

Personal Insurance Policy - Terms and conditions – 1. Class of Use:

This policy does not cover any of the following uses of the vehicle for all classes of use: 

Being in possession, custody or in control of a member of the motor trade, except for the purpose of maintenance or repair; 

 

Santam Commercial Policy – “Memoranda 3 Description of use clause”

Use for social, domestic and pleasure purposes and use for the business or occupation of the insured
excluding
hiring, carriage of passengers for hire or carriage of fare paying passengers, racing, speed or other contests, rallies, trials,

carriage of explosives or carriage of any load or passengers exceeding the capacity for which it is constructed or licensed to carry or

use for any purpose in connection with the motor trade.

 

Example: 

The insured wants to sell his/her vehicle and comes to an agreement with a Motor Trader/Dealer to park the vehicle on their premises

and get a buyer for a specific price. This agreement involves a commission to the Motor Trader/Dealer on the sale.

The vehicle which is now for sale at the dealer, is not the dealer’s own property,

 and is commonly referred to as consignment stock. However, if it is not the property of the dealer, the insurer will not classify it as stock.

In the event of the insured’s vehicle being stolen from the trader/dealers premises, the loss will not be covered under the insured’s

Personal Insurance Policy as well as the Vehicle Section of the Commercial Policy (refer to the above policy wording).  

 

This vehicle will also not be covered under the Motor Traders Internal Risk Section, because theft is specifically excluded under

“Specific Exceptions applicable to all Articles of this Section” (3) any consequence of theft or housebreaking or any attempt there at.”  

Please Note: Cover for theft could be arranged under the Theft Section of the Santam Commercial Policy by extending the cover by

means of clause 1206 “Vehicles in the open”, subject to the applicable provisions.

Link:  My Company/Policies & Procedures/ Claims/Santam Personal Insurance Policy or Santam Commercial Policy

Source: Technical Training and Development #45