Insurance Excess higher if their Node not installed

[craigba]

Hi guys,

Me again...

Our complex has received an offer from our insurance brokers to have someone come out (for free) and install a new node on our geysers (if the geysers are easily accessible), otherwise they won't do it / will charge...
They say that if this node is not installed, we'll have an excess of 3 times what it currently is.

Is this legal? Are they allowed to charge a higher excess based on this. I suspect so, but just want other opinions?

 

[supersunbird]

Yes it is legal, in that there is no law prohibiting it, or even regarding insurance excesses at all, which is a good thing, you cannot have laws about every single little thing.

Anyway, insurance providers can be changed if the complex are unhappy with their demand, to one without without such demands. The excess is about risk management, like how there is an extra excess for a driver under 25 and whatever, the insurance companies can make or remove whatever excess they want from whatever contract. If you are unhappy with the changes, you can choose another insurance immediately (the insurance company has to give you 30 days warning of a chance, so you have more power since you can stop using their services immediately).

 

[Hemi300c]

Hi guys,

Me again...

Our complex has received an offer from our insurance brokers to have someone come out (for free) and install a new node on our geysers (if the geysers are easily accessible), otherwise they won't do it / will charge...
They say that if this node is not installed, we'll have an excess of 3 times what it currently is.

Is this legal? Are they allowed to charge a higher excess based on this. I suspect so, but just want other opinions?

Who is the insurer?

 

[Trompie67]

Makes perfect sense. Except it is not a "node", it is an anode.

The anode attracts the minerals in the water & corrodes forst before the geyser itself corrodes, so all the insurer is doing is lessening the risk of geyser replacements by installing new "fresh" anodes.

They are cheap - around R150 to R200 each at builders, probably less if purchased from a plumbing supplier, certainly less when purchased in bulk.