Press Office Feature : Hollard launches ‘medical aid’ for motor cars
27 May 2007
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An ethically transparent extended motor warranty with clearly defined benefitsHollard has launched a ‘medical aid for cars’ with no cut-off time, three levels of cover at affordable premiums, no wear and tear loopholes for refusing claims and the top choice includes benefits for two services a year.
The insurance is called Hollard Motor Mechanical Aid and is available only through brokers or direct from Hollard.
“The cover never expires as long as the car is signed on before it reaches 10 years or 200 000 and premiums are paid,” says Herman Warren, heading this innovation for Hollard Insurance.
“Premiums are monthly and the level of cover chosen does not exclude ‘wear and tear’ as a cause of mechanical breakdown. This is genuinely transparent insurance which will deliver on promises with no smoke and mirrors and no necessity for car owners to have degrees in mechanical engineering to claim. The level of benefit for each component is very clearly explained in the policy documents.”
The three levels of ‘mechanical aid’ are called Move, Drive and Cruise for domestic vehicles under the weight of 3000 kgs.
Move: This choice has an entry level monthly premium of R79 and covers the mechanical failure of Engine (R12 000), Transmission (R8 500) and Drive shaft/prop shafts (R3 500).
Drive: For a slightly higher monthly premium starting at R159, the benefits here cover the failure of 18 specific components.
Cruise: This option at a premium starting at R269 includes a benefit of R500 each for up to two services and increased cover on eighteen components. For instance the engine benefit is R18 000, Transmission R13 000 and Drive shafts/prop shafts R13 000.
Warren explains: “This insurance is targeted at the vast majority of car owners in South Africa who drive cars that no longer have any form of manufacturer’s warranty, service or maintenance plan option. They have no fall back position for maintenance, service or emergency repairs which can cost many thousands and put serious strain on already stressed pockets … not to mention the practical problem of alternative transport while repair funds are found.
“So because Hollard is in the asset protection business, we are giving drivers a transparent and fair mechanical aid for cars with no hidden pay-offs of up to 40% commission plus a share of underwriting profits to the sellers. There are no wear and tear loopholes, no mechanical mystique and huge upfront lump sums to find.
“With Hollard Motor Mechanical Aid what you see is what you get and in the first few months of its launch South Africans are voting a big ‘yes’ for this new type of financial backup.”
Here is a no frills list of the ways this new insurance eliminates conflicts of the past:
Affordable monthly premiums
Elimination of wear and tear as a loophole or exclusion for paying claims.
Independent examiners for inspection with no vested interested in the outcome of their report.
Available only from brokers or direct – no complicated intermediary system or high commissions.
Practically any car can be insured if it is under 10 years old or has less than 200 000 on the clock
The mechanical aid does not cease with age or mileage
Cover begins once premium and one time initiation fee of R199 are paid
All mechanical aid policyholders have access to a 24-hour roadside assistance service which provides assistance with: Breakdown, towing, jump start, flat tyre, fuel top up if empty, locksmith, out of town accommodation and travel costs for breakdowns more than 100 kms from home.
“This mechanical aid insurance fills a very real need in South Africa and we have made it our goal to provide a wide range of options which are very straight forward and easy to understand,” says Warren.
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