"Since inception in 2003, the company has rewarded policyholders who are more cautious with their possessions over R218 million. In 2013, it plans to reward R44 million to policyholders. The bonus benefit shows how easy it is to earn a reward for good claims management," says the company's senior executive, Bradley Du Chenne.
He adds that the cash back bonus is unique in that policyholders can still qualify for a reward even if they have made certain claims during a four-year period. These include:
No-claim vs cash back
Many consumers do not understand the difference between a no-claim bonus and a cash back bonus.
"With a no-claim bonus, insurers reward policyholders for each claim-free year, by discounting their monthly premium. A cash back bonus rewards policyholders with a financial payout for remaining claim free for a specified number of years, because they have been more vigilant with their possessions. In the company's case, the period is four years. For other insurers, it ranges from two to five years. The prerequisite is that the policyholder must remain with the insurer for a required number of years in order to receive the bonus. Once the payout has been made, the policyholder begins a new four year cycle for the next payout.
"We hope that our policyholders will put their payouts to good use. We suggest that they use it to reward themselves - it is a bonus after all," concludes Du Chenne.
