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Gaborone
TEL: (267) 3600500FAX: (267) 3972867
Francistown
TEL: (267) 2413623FAX: (267) 2412291
Q. Where are the Botswana Insurance Company offices located?
A. The offices are located in the following areas;
Gaborone;
Plot 50372, Gaborone Business Park, Gaborone Show Grounds
Francistown;
Plot 454/455 ST. Patrick street
Maun;
Natlee Centre (opposite the Maun airport), 2nd Floor, Unit 10
Q. Why do I need to take my vehicle for inspection?
A. We need to see if there is any existing damage to the vehicle, confirm if the immobiliser is adequate and obtain the details of any non-standard accessories and sound equipment.
Q. Why does my premium increase when I have not claimed?
A. We insure our clients against the risk of loss/damage. The risk of experiencing an accident, having your car stolen or being a victim of some or other crime is much higher than it used to be.
With the:
- increased number of motor vehicles on the road;
- the fact that our road infrastructure has not been expanded or upgraded to deal with the extra traffic;
- the driving inexperience of many new vehicle owners; and
- Increasing crime levels.
The costs associated with these claims have increased. So, even though you may not have claimed, the cost of your claims will be higher than a similar claim would have cost in the past.
Q. Why does my premium increase when my car's value has depreciated?
A. The value of your car should be updated on a yearly basis.
At the premium review stage, you receive the full benefit of the depreciation in value of your vehicle in terms of your premium calculation. The effect of this benefit is offset against the factors mentioned above as well as others. Were it not for this adjustment in the value, the increase you receive would be higher.
The value of a vehicle is a factor only in the case of a stolen vehicle and accident claims where the vehicle is written off. These claim types account for less than 10% of all our motor claims. So, by far the vast majority of vehicle claims result in repairs which are not influenced by the fact that the vehicle has depreciated. In fact, the cost of repairing a vehicle this year will be substantially more than the cost at the same time last year, even though that vehicle may have depreciated by as much as 10-15%.
Repair costs have increased significantly due to a host of factors. Cars these days include more and more advanced safety features and electronic gadgetry e.g. even base model vehicles are fitted with expensive airbags. Due to this, and as requested by vehicle manufacturers, panel beaters are required to purchase expensive equipment to ensure an acceptable level of repair quality. This investment in capital, and the related costs associated with training staff to use this new and advanced equipment translates into higher repair costs.
In summary, the price of parts to replace safety features like airbags and electronic gadgetry is resulting in substantial increases in repair costs for even minor collisions.
Many of the vehicles are imported meaning that spare parts have to be imported.
There are numerous make and model options on our road today, and we have noticed that the availability of spare parts for these vehicles are limited. The average age of vehicles on our road has also dropped significantly, resulting in an impact on spare parts' availability.
Q. I cannot pay this month, but will pay double next month - will I still have cover?
A. Our billing is in advance. We can resubmit for you on a day within that month, but not double debit you. If your premium is not paid for that month, you do not enjoy cover.
Q. What do I need to do if I would like an insurance quote?
A. You can request for a quote on our website, visit our nearest branch or contact any of our authorized brokers / agents.
Q. What kind of livestock do you cover under the BIC livestock policy?
A. BIC livestock policy covers cattle. The defined events covered under this Policy are loss, injury or death of the insured cattle caused by:
- Fire;
- Lightning;
- Accident;
- Uncontrollable diseases excluding pandemics eg Anthtax, Foot & Mouth
Q. What is professional liability insurance?
A. In general, professional liability insurance protects against claims for damages the policyholder becomes legally obligated to pay to a client as a result of an error or omission in the work provided to the client.
Q. Why should I purchase professional liability coverage?
A. Professional liability coverage provides protection against claims resulting from your professional services. Most general liability policies will exclude this coverage.
Q. What affects the price of car insurance?
A. When determining the rate for a car insurance policy, insurers separate drivers into categories called classifications. Drivers are classified based on a number of different characteristics including, but not limited to, age and gender, marital status, where the vehicle is garaged, driving record, make and model of vehicle, prior insurance coverage. History has shown that drivers with certain characteristics, such as a poor driving record, have a greater chance of being involved in an accident, and the drivers in those classifications must pay higher rates.
Q. What is an excess?
A. An excess is a contributory amount you pay, when making a claim, however if the claim is deemed not to be your fault, it may be possible to recover your excess from the party deemed to be at fault.
Q. Do I really need insurance for my house?
A. For most people, their house is their single most valuable possession and largest investment. House owner's insurance protects your investment as well as you, your family and your household possessions.
If you were to suddenly lose your house due to a fire, or have the contents damaged or stolen, you probably could not afford to replace everything all at once. If somebody sued you for an injury or damage caused by you or your property, the cost of defending against that lawsuit could be very expensive regardless of the outcome.
All of these situations are covered by the house owner's package policy. And while it may be unpleasant to think about fire, theft, and other uncertainties of life, let's face it, that's reality.
Q. What influences the premium that I pay on my house owner's policy?
A. A number of factors influence the premium that you may be charged:
- Type of Construction: Brick houses usually have lower premium rates because they are less vulnerable to fire.
- Age of the House: Newer houses usually have lower premium rates than older ones. Some insurers may not want to cover very old houses at all or may provide only limited coverage.
- Fire Protection: Your house's distance from a fire hydrant and the quality of your local fire department affect the price you will be charged.
- Amount of Coverage: The amount of coverage you buy will affect the price you pay.
- Deductible Amount: The higher the deductible you choose, the lower your premium will be.
- Discounts: There may be discounts available for such things as smoke alarms or security systems.
Q. I'm paying a mortgage, so my home is already protected by house owner's insurance, right?
A. Not necessarily. Mortgage lenders do require some kind of homeowners insurance because, like you, they have a big investment in your home. But mistakes do occur and messages do get lost. Some mortgages do include insurance premium payments in your monthly mortgage bills, but some do not.
You may think the mortgage lender is paying for the insurance while the lender thinks you are paying for it. Ultimately it is your responsibility to know who is insuring your home and whether the premium has been paid. Contact your lender and insurance company to make sure your policy is in place and the premium is getting paid.
Q. How much house owner's insurance do I need?
A. That depends on the value of your property. The more coverage you buy, the less you will have to pay out of your own pocket if you suffer a loss that damages your house or its contents. You also need enough personal liability coverage to protect you from claims brought against you by others.
