February 2006
2005 saw the local launch of our accommodation reservation website www.bnbfinder.co.za and it is fast becoming the largest website in the country of B&B and guesthouse establishments but even better than that, is the fact that our policyholders are getting reservations through this site in ever increasing numbers.
Then in October 2005 we had the launch of the BnB SURE Club where policyholders are able to get a variety of products and association memberships at reduced cost.
These facilities adding to the value of having their insurance correct, and with the B&B and guesthouse insurance leaders and thereby reducing the overall running costs of their establishment without having to compromise insurance cover to do so.
Now BnB SURE takes its next innovative step. From 1 February 2006, we will have a 24-hour claims line in the event of emergency. Too often a B&B or guesthouse has been faced with a problem, say, early on a Saturday morning of a theft resulting in the loss of goods from a room and the resultant loss of the guests for that room.
Now, BnB SURE policyholders need simply to call the Toll Free line
0800 55 66 77 to get help with that sort of urgent matter. Assessors will be on standby to be there for the policyholder. No need to panic about what to do. BnB SURE is there for the insured 24 hours a day 7 days a week.
The claim will be handled, assessors appointed and on the first working day thereafter, the BnB SURE office dealing with the policy will be called to take over the claim and we will at the same time then advise the broker of the claim.
PROUDLY INSURANCE
We are thrilled to have become the first Underwriting Manager to join the Proudly Insurance initiative. For more information on Proudly Insurance please visit the website at www.proudlyinsurance.co.za.
This very exciting initiative has the support of all the major insurers in South Africa and we are proud to be part of it.
ERRORS & OMISSIONS COVER
We are pleased to announce that we have been able to negotiate this cover as additional to our liability section and it covers “all sums which the Insured shall become legally liable to pay by way of compensation as a result of a claim or claims first made against the Insured arising out of any act, advice, error or omission committed, or alleged to have been committed”. The limit for this extension is R1m and there is no premium.
BILKING
Following a spate of bilkings, particularly in Kwa Zulu-Natal, recently we are also pleased to advise that we are now able to offer increased limits in terms of our bilking extension. Previously this came at no additional premium in the amount of R3000 but this has now been increased to R5000. In addition any policyholder may increase this even further to R10,000 or R15,000 at R25 per month or R50 per month respectively. So that means for just R25 per month the cover is R10,000!
ACROSS THE BOARD ENDORSEMENT
We will, during February be sending out an endorsement to all policyholders making certain changes to the cover and increasing cover in many areas. These endorsements will be sent direct to the policyholder but any broker wishing to send these out themselves should contact our offices and this will be arranged.
PROPOSAL FORM
We have recently updated our proposal form which is available on our website, www.bnbsure.co.za It can be downloaded and printed whenever needed.
PDP LICENCES
There has been so much written about and spoken about the need or otherwise of a PDP licence. In renewal advice forms coming from Home Affairs one of the conditions under which a person needs such a permit is described in clause (e) that states that
“In terms of Road Traffic Legislation, a PDP must be held by the driver of a motor vehicle used for the conveyance of persons for reward”.
The exception, we have been told, is where guests do not pay but enjoy a “courtesy service”, which is characterised by there being no separate fees or charges in respect of the service.
The problem arises in asking the question “Where does a “courtesy service end and fare paying begin”
With this in mind we asked our attorney for his opinion:
“To ensure that a “built in” charge is not included, one would have to consider ways to demonstrate, if necessary, that the service is purely a courtesy service. One would necessarily have to make sure that no separate charges are indicated in the advertising material or the billing of guests. Furthermore, the service cannot be seen to directly generate any profit (or income for that matter) for the business.
Consideration could also be given to exactly who the registered owner of the vehicle is, and whether the vehicle has been declared to the South African Revenue Services as a vehicle used for generating income.
In determining whether a “courtesy service” exists in the true sense of the word, all the circumstances surrounding ownership of the vehicle, its declared (as well as actual) use and any other factors which would suggest whether the courtesy service was indeed a built in cost or not, would be considered.
There ought to of course also be considerations of practicality – if it is going to be difficult and complicated to create the circumstances under which one can prove that such a permit was not required, perhaps the inconvenience and difficulty might outweigh the cost of a permit, and in those circumstances I would certainly recommend that such a permit be obtained.”
Opinion provided by Attorney Derek Milne of Duncan Okes Inc
This opinion should be read in conjunction with that given in our newsletter of February 2005 which can be found on our website www.bnbsure.co.za and it should also be remembered that this opinion deals with the requirements for the DRIVER and that there may be further licensing requirements for the vehicle itself. If a vehicle is being used for the conveyance of fare paying passengers police will ask for TWO licenses for the driver and TWO licenses for the vehicle.
THE ONLY INSURER PUTTING PEOPLE IN THE BEDS
OF OUR POLICYHOLDERS
We continue to be the only insurer to put people into the beds of our policyholders.
Without guests, B&Bs and guesthouses have no business and therefore no need for insurance. We are committed to being the complete solution to the needs of the B&B and guesthouse industry with the cost savings by the BnB SURE Club and by getting reservations for our policyholders.
With this in mind, new and exciting extensions to our accommodation website www.bnbfinder.co.za are due next month. In certain areas of South Africa reservations are quiet in what is traditionally “low season” and we will be offering to list these establishments under a new section of our website headed “SPECIALS” where these establishments reduce there normal accommodation costs at these times. So at no cost to the establishment they can get the news out to the traveler.
Stuck for a gift idea for a loved one? Also available in March will be vouchers where accommodation can be bought for any establishment listed on www.bnbfinder.co.za. These vouchers from R500 to any amount are then exchanged for accommodation.
ROAD ACCIDENT FUND RULING
(from the newsletter of TBCSA with thanks)
The road accident fund recently announced that it would no longer pay compensation to foreigners. This caused quite an uproar in the industry. The major concern was that this amendment would negatively impact the tourism industry in the long run. TBCSA contacted the Chair of the Portfolio Committee for Transport, Jeremy Cronin, who assured them that this clause had been taken out of the amendment bill that has been presented to the National Assembly.
BnB SURE CLUB NEWS
January saw the first BnB SURE Club News sent out to all those policyholders where we have an email address. Copies of the “News” can be found on our BnB SURE Club website that can be accessed through our main website www.bnbsure.co.za.
The purpose of the BnB SURE Club News is to keep club members up to date with special offers and news of a legal nature that may become available.
We will shortly be offering Club members a new and exciting facility to assist them even further in putting people in their beds. Another first for BnB SURE.
One matter that is of concern is the number of clients whose details have changed and we have not been advised of this. Where we find such change we will be calling the broker to get details updated.
BnB SURE ASSIST TOLL FREE LINE
We remind readers that use of the services offered through the BnB Sure Assist toll free line can only be activated by calling toll free on
0800 55 66 77.
BRANCH OFFICES
Contact details of BnB SURE offices are:
Johannesburg - (011) 886-6066 Fax No. (011) 886-1725
Cape Town office – (021) 948-0432 Fax No. (021) 948-3582
Durban office – (031) 563-6611 Fax No. 086 686-8897
Managers: Johannesburg – Raks Maharaj
Cape Town - Trudy Venter
Durban - Vaneshri Govender
THOUGHT FOR THE MONTH:
“If it’s in the past, you can either run from it – or learn from it”
a quote from “The Lion King”
