Hollard VAPS (Value Added Products) Credit Shortfall option will pay out the outstanding sum owed by you to your credit provider at the time of your loss, whether it be due to an untimely accident or if some Tool once again decides to steal your car so good, that it can never be found again!
So this obviously serves you as an enormous advantage in the event that you start looking for that brand-new vehicle. Here are some details regarding this product:
Credit Shortfall
Insured Event
This section covers the difference (shortfall) between Your vehicle insurance payment and the Statutory Settlement Balance when Your vehicle is stolen and not recovered or damaged beyond economical repair and written off.
Benefit
We will pay a benefit amount under this section if the Underlying Insurer settles the Underlying Policy claim as a lump-sum payment and a shortfall arises between such lump-sum payment and the Statutory Settlement Balance of the Credit Agreement.
We will pay either, the Statutory Settlement Balance as at the date of loss or we will pay the Maximum Indemnity (as stated in the Schedule), whichever is the lesser.
We do not cover (and therefore deduct) the following amounts:
- the amount paid by the Underlying Insurer as a lump sum;
- the amount by which the Excess payable by You for the Underlying Policy claim exceeds N$6 000;
- any shortfall due to the vehicle not being insured for its correct Retail Value;
- any shortfall due to the vehicle initially being sold for an amount greater than 10% of its listed Retail Value (excluding optional extras and added equipment);
- amounts deducted by the Underlying Insurer which is not covered in terms of the Underlying Policy;
- any arrears installments (payments You may have missed as part of Your Credit Agreement) or rentals and any interest still owing on them;
- any optional extras and added equipment financed in terms of the Credit Agreement, but not paid under the Underlying Policy;
- any amount refundable to You in terms of the Credit Agreement on the Date of loss such as insurance premiums (short-term, credit life or motor warranty premiums).
Specific conditions applicable to Credit Shortfall
- If the Underlying Insurer rejects a claim in terms of the Underlying Policy and the Underlying Policy has not been cancelled, voided or avoided, but the Underlying Insurer has made You an Ex Gratia payment, cover in terms of this policy shall be limited to the difference between the Statutory Settlement Balance and the Retail Value and the claim shall be dealt with as a Shortfall claim. All other deductions in terms of a Credit Shortfall calculation will still apply.
- If the Underlying Insurer policy makes provision for replacing the vehicle with a new vehicle at the date of loss, the Retail Value of the vehicle under this policy will be replaced by the New List Price of the vehicle wherever it appears.
Cover Limit
The maximum amount We will pay is limited to N$100 000 per Insured Event.