Understanding Excess Liability in Insurance Claims
Overview of Excess Liability
In the context of insurance claims, the term
"excess" refers to the amount the claimant is required to pay out of
pocket when submitting a claim. It is important for owners to understand their
responsibilities regarding excess payments, particularly in accordance with the
Sectional Titles Schemes Management Act.
Key Points:
- Claimant
Responsibility: Unless specified otherwise, the claimant is always
liable for the excess on an approved claim.
- Owner
Liability: As per the Sectional Titles Schemes Management Act,
Regulation 23 (2):
- The
owner of a section is responsible for:
- (a)
Any additional premium resulting from an increase in the replacement
value.
- (b)
Any excess amount related to damage to parts of the buildings that the
member is obligated to repair and maintain according to the Act or the
rules.
- Recovery
of Excess: If the owner wants to dispute or recover the excess amount,
they must do so in their personal capacity, either with the body corporate
or another owner.
- Typical
Scenario: The individual who submits the claim typically pays the
excess. If the damage originates from another unit, the affected owner may
need to discuss the situation directly with the responsible party.
Understanding these points can help clarify any confusion
regarding excess payments and the responsibilities of property owners.
If you have any questions about the excess on your claim, please consult your insurance policy or contact the
ANGOR Team on insurance@angor.co.za.
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