Insurance Cover for Cycling Fanatics
17 February 2014 | Non-life | Personal Lines | Mandy Barrett, Aon
Cycling is taking South Africa by storm with enthusiasts taking to the streets and participating in events that are growing in popularity such as the Cape Argus Cycle Tour (35 000 participants) and the 94.7 Cycle Challenge (30 000 participants). Many cyclists however underestimate the financial implications of having to replace lost or damaged peddle cycles and gear with top of the range cycles costing as much as R75k.
Mandy Barrett of insurance brokerage and risk advisors, Aon South Africa says that once you take your bicycle out of the house, it needs to be specified under the ‘All Risks’ section of your insurance policy. "Household contents are restricted to the four walls of your home and anything you take out of your front door needs to be specified,” says Mandy.
Under an unspecified all risks section of cover, certain types of risks are limited with pedal cycles generally restricted to not more than R5000 "If your high performance bicycle is unspecified under the ‘All Risks’ section of your insurance policy, it won’t be adequately covered for any loss or damage, leaving you seriously out of pocket ,” explains Mandy.
There are a few questions to check with your broker to ensure that your high performance, peddle cycle is specified and insured correctly:
• Is your peddle cycle covered in transit? This would be an ideal question to ask if you are travelling to various locations to participate in races, even flying to Cape Town for the Argus for example.
• Is your peddle cycle covered for damage whilst in use?
• Is your peddle cycle covered for professional racing?
• Is your racing gear, such as sunglasses and helmets, specified and covered? Accessories costs can add up quickly.
• What exclusions exist on my policy?
Mandy urges cycling enthusiasts to discuss the cover of their peddle cycle with their broker. "The brokers’ role is to examine your circumstances in detail and impartially recommend covers to meet those needs. Choice, simplicity of wording and customisation will ensure that your bicycle is covered correctly. Not only does it provide you with the peace of mind of competing without having to worry about the unforeseen, but a broker’s expertise will also ensure prompt and fair settlement of any claims so you can get back to doing what you like best without delay,” concludes Mandy.
