When they were still operating, 1time Airline were selling an AIG Travel Insurance policy (issued by (AIG South Africa Ltd) together with its flights. To have a closer look, we purchased their "1time Domestic Cover" policy on the 29th Dec 2008 for our return flight from Cape Town to Johannesburg.
We wanted a cheap 1time flight, and it cost us R150 (including VAT) to cover the 3 of us (2 adults, 1 two-year-old child) for a return flight from Cape Town to Johannesburg (i.e. R25 per person for each leg of the trip). The certificate we were issued specified that a predetermined commission had been included in the premium (this is probably where 1time earns some money - would be interesting to know how much).
1time Airline Flight Delay
R375 per 6 hour delay period, up to R3,000
Baggage and Personal Effects Loss
Up to R5,000 excess R500 per claim (Any One item R1,250)
Up to total original flight cost
In a number of years of frequent flying I have never experienced a 6 hour delay, have never had baggage or personal effects stolen (a suitcase has been broken into without anything stolen, but the excess of R1,250 on any individual item would be more than the cost of repairing the suitcase). So in some (say) 50 flights I would never have had a claim.
Insurance works well when there are large amounts of money involved, but it's not smart to take out insurance for small amounts of money where the claim experience is likely to be low. It's almost impossible to receive more than R10,000 in a claim from this particular policy, and unlikely that any claim would be over R5,000 (unless more than one insurable event occurred at the same time). For such a small amount of money involved and a low probability of claim, I would rather take on the risk myself than pay across profit to AIG & commission to 1time.
An AIG email address sends 2 documents:
A certificate of insurance
1time leisure travel policy wording
For queries a phone number (0860 110-128) and an email address (firstname.lastname@example.org) were provided.
PREMIUM – INDIVIDUAL
PART 1 – POLICY DEFINITIONS
BUSINESS ASSOCIATE means a partner, director or employee of the Insured Person.
COMPANY shall mean to AIG South Africa
EFFECTIVE DATE OF COVER The coverage provided to the Insured Person starts only upon check-in for departure of a 1time Airline flight in the itinerary provided that the premium has been paid before travel and a copy of the 1time Airline Policy Certificate has been issued. Coverage will include the time the Insured Person is inside any airport premises for the purpose of commencement or continuation of the same scheduled flight.
EXPIRY DATE OF COVER Coverage ends upon safe disembarkation of the Insured Person from the airport premises at the end of his scheduled return flight or, in the event of a One-way flight, upon safe disembarkation of the Insured Person from the airport premises, provided this falls within 30-days of the first departure date. In all events, the Policy terminates on the 31st calendar day from the first departure date even if the return flight has not begun, and all benefits under this Policy will terminate absolutely, effective as of the 31st day of the first departure date stated in the flight itinerary.
INSURED PERSON(S) shall mean the person(s) named in the Policy Certificate as the Insured(s);
1TIME AIRLINE shall mean 1time Airline and any legally authorised representative of 1time Airline.
1TIME AIRLINE AIR CARRIER shall mean any fixed-wing aircraft provided and operated by 1time Airline licensed for the regular transportation of fare-paying passengers and operating only between established commercial airports.
POLICY means this document embodying the contract of insurance, benefits and premium rates and shall include any subsequent Terms, Conditions, Exclusions, Terminations and Endorsements.
POLICY CERTIFICATE means the certificate which attaches to and forms part of the Policy and contains the relevant details of the Insured Journey.
RELATIVE shall refer to the Insured Person’s spouse, child, parent, parent-in-law, grandparent, grandparent-in-law, great-grandparent, great-grandparent-in-law, grandchild, brother, sister, niece, nephew, aunt or uncle.
SERIOUS INJURY OR SERIOUS SICKNESS whenever applied to the Insured Person is one which requires treatment by a Qualified Medical Practitioner, is unexpected or unknown to the Insured person at the time of purchasing this Policy and which results in the Insured Person being certified by that Qualified Medical Practitioner as unfit to travel or continue with his/her original Trip. When applied to the immediate family member, it shall mean Injury or Sickness certified as being dangerous to life by a Qualified Medical Practitioner and which results in the Insured Person’s discontinuation or cancellation of the Trip.
TRAVEL COMPANION shall mean a person who has travel bookings to accompany an Insured Person on the Trip.
TRIP shall mean an insured journey undertaken by an Insured Person traveling on a 1time Airline Air Carrier within the territorial limits of South Africa.
PART 2 - GENERAL CONDITIONS
AGE LIMITS This Policy covers any event which happens to an Insured Person who is:
• Over the age of 2-years
AIRLINES The Company will have no liability to provide an indemnity or part of an indemnity in relation to any insured event for which the Insured Person may be able to seek compensation in respect of the same from 1time Airline. If the Insured Person proves that it has taken all reasonable and necessary steps to claim from 1time Airline, the Company will pay a pro-rata portion of indemnity. The Company’s liability will be calculated by reducing the benefits by the amount for which the Company considers 1time Airline to be liable.
CURRENCY All amounts are shown in South African Rand (ZAR). If expenses for which an indemnity can be provided in terms of this policy, are incurred in a foreign currency the rate of exchange used will be the rate at the time of incurring the expense or the date of the insured event, whichever is the more favourable to the Company.
INFORMATION By acceptance of this contract of insurance or the benfits under this Policy the Insured Person acknowledges that the sharing of claims and underwriting information by the Company is essential to enable the Company to underwrite policies, assess risks fairly, ensure compliance with all and necessary applicable legislation, regulations and business compliance requirements (including any overseas laws, regulations and compliance requirements binding on the Company) and to reduce the incidence of fraudulent claims, in the public interest and with a view to limiting premiums. The Insured person, on his own behalf and on behalf of any person he represents herein, hereby waives any right to privacy in any insurance information provided by him or on his behalf in respect of any insurance policy or claim made or lodged by him and he consents to such information being disclosed to any other party (including any subsidiary or parent company of the Company as well as any government or regulatory authority) who has a direct interest in the information disclosed by the Insured Person / his agent. The Insured Person also acknowledges that the information provided by him may be verified against any other legitimate sources or databases and waives any rights of privacy and consent to the disclosure of any information relevant to any insurance policy or claim concerning him.
LIABILITY The Company shall not be liable or responsible for:
the negligence, wrongful acts and/or omissions of any legal and/or health care professional or any other person or persons or legal entity that provide direct or indirect service to the Insured Person;
the failure of any agent or broker to explain adequately the Policy.
LANGUAGE The official version of this Policy is in English. Words in the singular include the plural and vice versa and words in the masculine gender include the feminine gender.
MARKETING Should any discrepancies arise between the Policy and any literature or information received by the Insured Person, the Policy will govern in all cases.
MISREPRESENTATION This Policy shall be voidable (at the discretion of the Company) in the event of misrepresentation, misdescription or non-disclosure by or on behalf of the Insured Person of any information material to this Policy.
OTHER FINANCIAL PRODUCTS AND SERVICES The Company will accept no liability whatsoever for any of the insurance or other financial products or services which are sold in conjunction with this Policy that are provided or underwritten by any other insurance or assurance companies and/or assistance companies and/or financial providers.
OTHER INSURANCE If the Insured Person is able to claim under any other policies (including statutory insurance and/or automatic credit card travel insurance) to be covered for the whole or any part of an insured event (“Other Claims”), the Company will only be liable to pay its pro-rata portion of the claim submitted in terms of this Policy.
If in the Company’s discretion it decides to pay the claim in full, then it will not be obliged to make payment unless the Insured Person cedes to the Company all of their rights in respect of the Other Claims.
If the Company has already paid benefits in terms of this Policy, all of the Insured Person’s rights in respect of the Other Claims will be ceded automatically to the Company.
A cession in terms of or will allow the Company to do all things necessary to claim against the other insurer or company and institute legal proceedings against that other insurer or company if the Other Claim is not paid.
Without limiting any provision of this Policy or any legal obligation, the Insured Person must co-operate fully with the Company in relation to the Other Claim or legal proceedings including:
not doing anything to prejudice or limit the Company’s rights;
giving the Company whatever information and documents it may require;
signing any document or affidavit that the Company may request to enable it to exercise its rights.
PAYMENT OF BENEFITS This Policy is between the Company and the Insured Person only and all of its provisions and conditions are for the sole and exclusive benefit of those parties. Nothing in this Policy, express or implied, is intended to confer upon any other person any rights or remedies of any nature whatsoever under this Policy or any of its provisions. Without limitation, no third party shall have any rights under this Policy or any right to receive Policy benefits. Receipt of benefits paid as follows will be a valid discharge of the Company’s liability under this Policy. This Policy cannot be ceded, assigned or in any way transferred to a third party. Benefits shall be payable at the discretion of the company only to the Insured Person or his legal representative.
PUBLIC CONVEYANCE TICKETS The Company has the right to utilise the Insured Person’s Public Conveyance ticket to offset the Company’s expenses. For the purpose of this clause Public Conveyance will include any Conveyance specified in the definition of Public Conveyance.
SOUTH AFRICAN LAW This Policy will be governed by the laws of South Africa and its courts shall have exclusive jurisdiction to the exclusion of the courts of any other country.
SUBROGATION The Company has the right to commence or take over legal proceedings in the Insured Person's name for the defence or settlement of any claim, or to sue or prosecute any other party to recover monies payable by them at law. The Insured Person must co-operate with the Company and do nothing to hinder the Company’s rights.
TAX OR IMPOSTS The onus will always be on the Insured Person to ensure, correctly admit and pay any tax liability in consideration of any benefit being paid that may incur tax or imposts of any nature.
PART 3 – CLAIMS CONDITIONS
COMPLIANCE The Insured Person must follow the Company’s advice or instruction otherwise the Company may decline to pay the whole or any part of the claim.
LEGAL ACTION If the Company denies liability for any claim and the Insured Person does not institute legal action and serve summons on the Company (or initiate arbitration proceedings if the Company has agreed to submit to arbitration) within 12 months after such repudiation, all benefits of such claim shall be forfeited.
NOTICE OF CLAIM AND PROOF OF LOSS The Insured Person must give the Company notice in writing within 90 days of an incident which may give rise to a claim under. The Insured Person must, at his own cost, provide whatever certificates, information and documented evidence (“Evidence “) is required by the Company regarding the Insured Event.
RECOVERIES All recoveries net of the Company’s actual recovery costs will be distributed firstly to the Company for all amounts paid and any remainder will be paid to the Insured Person.
FRAUDULENT CLAIMS If the Insured Person, or anyone acting on the Insured Person's behalf use any fraudulent means or devices to obtain any Benefit or the claim is in any respect fraudulent, then any amount payable in respect of such claim shall be forfeited as well as the Company being entitled to immediately cancel the Policy.
The Insured Person shall submit to medical examination at the expense of the Company as often as shall be required in connection with any claim. Any report generated as a result of such examination shall be the property of the Company and shall be deemed to be confidential information of the Company.
All claims arising from criminal incidents are to be supported and accompanied by a certified police report.
The due observance and fulfilment of the Policy insofar as it relates to anything being done or complied with by the Insured Person, shall be a condition precedent to liability to make any payment under this Policy.
The Company shall have the right to access any current or prior medical records of the Insured Person in order to finalise and/or proceed with the assessment of a claim and/or render medical assistance. By virtue of this clause, the Insured Person
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shall be deemed to have given the Company written consent to access any of the Insured Person’s current or prior medical records.
No amount payable in terms of this Policy shall bear any interest.
PART 4 - CLAIMS PROCEDURES
A completed claim form that has been signed by the Insured Person, copies of the airline ticket, the Travel Insurance Certificate and other items that may be necessary are required on all claims together with the following documents for the different types of losses.
Relevant Medical certificates or death certificates in the case of death.
Original air-tickets or Travel documents.
Baggage and Personal Effects Loss
The Insured Person must obtain Passenger/Property irregularity report from 1 Time Airlines, in order to substantiate the claim.
Police Report to be submitted if due to Theft.
Receipts to be submitted as proof of payment.
Letter from airline detailing reason for the delay.
PART 5 – BENEFITS SECTION
SECTION 1 – 1time Airline FLIGHT DELAY
In the event the scheduled departure of the 1time Airline flight in which the Insured 1time Airline Guest has arranged to travel is delayed for at least six (6) hours from the time specified in the itinerary supplied to the Insured 1time Airline Guest due to inclement weather, equipment failure or strike or hijack (other than Aircraft Hijacking) or other industrial action by any employee of 1time Airline during the Flight, the Company will pay the Insured 1time Airline Guest R375 for the first complete six (6) hour period of delay, followed by the sum of R375 for the next complete six (6) hour period of delay and so on, up to the maximum limit specified in the Schedule of Benefit.
The period of delay will be calculated from the original scheduled departure time of 1time Airline Flight until the commencement of the first available alternative transportation offered by 1time Airline management. A letter from 1time Airline confirming the duration and reason for such delay will suffice as proof for the payment of this benefit.
Exclusions applicable to Section 1:
No benefit will be payable for any loss:
Arising from the failure of the Insured 1time Airline Guest to check in according to the itinerary supplied to him/her, or to obtain written confirmation from 1time Airline or its handling agents of the number of hours delayed and the reason for such delay.
Arising from strike or industrial action of companies/carrier involving other than 1time Airline and already in existence on the date the Flight is arranged.
Arising from the late arrival of the Insured 1time Airline Guest at an airport (except for late arrival caused by a strike or an industrial action).
SECTION 2 – BAGGAGE & PERSONAL EFFECTS LOSS
The Company will pay the Insured Person, up to the limit specified, in consequence of damage due to a theft or an attempted theft, or loss or damage to the Insured Person’s baggage and personal effects within the premises of the airport of disembarkation. The baggage and personal effects must travel with the Insured Person on board the 1time Airline Air Carrier. This includes clothing and personal effects worn or carried on the Insured Person, in suitcases and like receptacles. All items must be owned by or in the custody of or which is loaned or entrusted to the Insured Person.
In the event any article of the Insured Person’s personal baggage is proven to be beyond economical repair, a claim will be dealt with under this Policy as if the article had been lost.
The Company shall not be liable for more than R1,250, in respect of any one article or pair or set of articles.
The Company may make payment or at its option reinstate or repair subject to due allowance for wear and tear and depreciation.
Depreciation may not be applied to electronic items that are purchased less than 1 year from the date of the Accident if the Insured Person can produce supporting document (i.e. original receipts or original warranty cards) for claims.
The loss must be reported to the police or relevant authorities at the place of the loss within 24 hours of the incident. Any claim must be accompanied by written documentation from such authorities.
A pair or set of items is treated as one item (e.g. a pair of shoes, a camera and its standard accompanying lens and accessories).
Exclusions applicable to Section 2:
The following classes of property are excluded from coverage: animals, motor vehicles (including accessories), motorcycles, boats, motors, any other conveyances, snow skis, fruits, perishables and consumables, household effects, antiques, artifacts,
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paintings, objects of art, computers including handheld computers and personal digital assistants, manuscripts, jewelry, gem stones, watches, contact or corneal lenses, securities, musical instruments, bridges for tooth or teeth, dentures.
Loss or damage caused by wear and tear, gradual deterioration, moths, vermin, inherent vice or damage sustained due to any process or while actually being worked upon resulting there from.
Loss or damage to hired or leased equipment and loss of or damage to property resulting directly or indirectly from insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authorities in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority or risk of contraband or illegal transportation or trade.
Loss of or damage to property insured under any other insurance policy, or reimbursed by any other carrier, hotel or any other party.
Loss of or damage to the Insured Person’s baggage sent in advance, mailed or shipped separately.
Loss of or damage to the Insured Person’s baggage left unattended in any public place.
As a result of the Insured Person’s failure to take due care and precautions for the safeguard and security of such property.
Loss of or damage of business goods or samples or equipment of any kind.
Loss of or damage of data recorded on tapes, cards, discs or otherwise.
Loss of or damage of cash and bank notes, stored value cards, cash cards, bonds, coupons, stamps, negotiable instruments, title deeds, manuscripts, securities of any kind, loss of or replacement of credit cards, driving licenses, and travel documents.
Loss of or damage or derangement or breakage of fragile or brittle articles.
SECTION 3 – TRIP CANCELLATION
If the Trip is cancelled due to any of the following occurring within 30 days before the date of departure of the Trip:-
death or Serious Injury or Serious Sickness or compulsory quarantine of the Insured Person, the Insured Person’s Relative or Travel Companion;
The Company will reimburse the unused and non-refundable portion of 1time Air Carrier Ticket fare, up to the limits specified in Section 3 of the applicable Plan, for the resulting loss of travel expenses:-
paid in advance by the Insured Person; and
for which he is legally liable; and
which is not recoverable from any other source.
Exclusions applicable to Section 3:
The Company will not pay for any loss:-
caused directly or indirectly by government regulations or control; or
caused by cancellation by 1time; or
that is covered by any other existing insurance scheme or government program; or
should this insurance be purchased less than 7 days before the date of departure (with the exception of death or Serious Injury or Serious Sickness of the Insured Person, the Insured Person’s spouse, child, parent, parent-in-law, grandparent, grandparent-in-law, great grandparent, great grandparent-in-law, grandchild, great grandchild, brother, sister, brother-in-law, sister-in-law or travel companion).