Sharing PI claim examples and giving tips to prevent PI claims in your brokerage.

Broker Protect

FACTS: Client claimed R98 000 from broker because his motorcycle was stolen and it was not covered. The client had 2 motorcycles on a separate policy. He sold one of them and the broker, not picking up the second motorcycle, cancelled the policy.

DECISION: The PI policy paid out to client (less the broker’s excess payment). The broker made a genuine admin mistake resulting in a financial loss to client.

LESSON: We often see claims in short term insurance practices where a broker omitted to insure an asset properly (or cancel it inadvertently). Re-visit your procedures and always let a colleague do a final check on any policy changes.

Keep safe.