My uncle called me last week with a few questions regarding his JWS Trinity Renewal. I listened intently to his questions and had no idea how to answer them, so I went to chat to the experts, and I am sharing the conversation with you here.
Additional earthquake cover
The first question my uncle raised was why earthquake cover is listed separately and do the insurers know something we don’t? The answer is no, the insurers do not know anything more than we do about whether East Africa is likely to see an increase in earthquakes, it is simply part of the worldwide changes and increases in insurance rates. Before it was included in the policy wording and now it is a separate cover that you can choose to purchase.
Political, Violence & Terrorism.
The second question was around PV&T; firstly, what does this stand for? Political, Violence and Terrorism. This is another growing phenomenon around the world and was excluded from all Kenyan policies about 10 years ago. It is now an optional cover in all policies. If you are concerned that this may be a risk in your area, then we suggest you tick the box.
I was then asked what an NCD was. This stands for No Claims Discount, and it is exactly what it says it is and can be applied to your cover going forward. The NCD is available if you can prove you have been insured for a period of time, with no losses or losses below a certain level and is scaled dependent on both factors.
And lastly my uncle was given a couple of different quotes, one was considerably cheaper than the other and he was told it was because of the LTA discount. He quite rightly asked if this was a trick question – surely, he was going to go with the cheaper option but what is the catch he asked. There is no catch. LTA stands for Long Term Agreement. As mentioned above there has been a substantial hike in rates worldwide and one of the ways JW Seagon is attempting to keep rates low for our customers it to offer them an opportunity to sign up to the policy for 3 years and in return, they receive a discount. It does mean, you are obliged to remain with that insurer for that period, but only if they keep your rates and terms and conditions the same during that period. The value of the assets, in this case your house and your car, may go up and down but the rate will stay the same for a period of three years. This would mean of course you can’t switch brokers during that time, but why would you want to when you’re with JW Seagon!
I hope you have found this a little bit helpful; we are always here to answer your questions and your feedback is important to us. If you would like to learn more about the increase in insurance rates, then Jeremy has written several informative blogs which you can access here: https://www.jwseagon.com/important-information-motor-rates/