Inception value policy (IVP)
Inception value policy (IVP) is a type of insurance policy that pays the difference between retail value at inception and retail value at date of loss1. The insurer needs to inspect the policyholder’s building to assign a fixed value at the inception of the policy2. If the property is rendered a total loss when the covered peril occurs, the insurer must pay the fixed value stated in the policy document2. Inception is a very important detail when it comes to filing an insurance claim, as it can determine whether or not a loss will be covered3. Comprehensive insurance policies generally pay out the current retail value of your car, as at the time of total loss.
Renasa’s IVP division underwrites motor policies which insure vehicles against depreciation in the event that it is stolen or written off, and automatically includes credit shortfall (free of charge) for financed vehicles. The IVP Division was established in 2010. Based in Johannesburg, the division provides a countrywide service.
Renasa’s IVP Policy insures vehicle value depreciation and has several other benefits for policyholders
The IVP Policy:
- pays the difference between retail value at inception and retail value at date of loss;
- automatically includes credit shortfall cover for finance of vehicles;
- is available on financed and non-finances vehicles;
- is available on any age of vehicle;
- represents an increasing benefit as the vehicle depreciates;
- represents highly economical cover;
- is available as additional cover to comprehensive policies issued by other South African insurers;
- will respond if the underlying comprehensive policy responds.
Renasa’s IVP Policy also has benefits for intermediaries
Benefits for intermediaries include:
- IVP encourage retention as the benefits increase over time;
- premiums are determined by a dynamic rating engine already integrated to all major policy administration systems;
- IVP represents an attractive cross selling opportunity.
View the latest thought leadership from IVP in COVER Magazine:
Listen to a podcast discussion with COVER's Editor Tony van Niekerk and Manager of specialist classes at Renasa, Austin Mpandawana
Read the latest article titled 'Enhancing Asset protection' on COVER WebMag:
In a conversation with Austin Mpandawana from Renasa Insurance, the spotlight was on the Inception Value Policy (IVP) in the realm of specialist insurance. IVP offers crucial protection in the motor industry by maintaining asset values from policy start, guarding against depreciation. This policy aids in covering the gap between the vehicle’s market value and the loan amount in case of loss or theft, providing financial security to policyholders. Despite its benefits and reasonable costs, its market recognition is limited. Renasa’s partnership with Telesure aims to enhance IVP’s visibility and adoption.
