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All you need to know about the Cashback Option

1. Why do we have cashback on our motor policy?
Insurance is taken to assist the policy holder in an event there is an accident during the insurance period. In the event there is no accident, the insured deserves a reward for not claiming and being accident free. Cash at hand is the best reward that SRIC is introducing as an option to the Claim free discount we have always been offering.

2. How does the cashback option work?
After every year or at the anniversary of your private motor insurance policy, SRIC will pay cash into your account as a reward for not claiming.

3. How does the current claim free group work (CFG)?
Following no claims at any one period of insurance, the insured earns a point which essentially discounts the annual premium for the following year. Hence you pay less annual premiums on the next insurance period. The advantage is that this is transferable to future car purchases which means you will be quoted at a lower rate when you add another car in future.

4. What are the advantages of the cashback vs the current CFG?
The cashback option pays cash directly into your bank account at the end of each insurance year. You don’t have to fill any forms as this will be an automated process. The drawback of the cashback is that your premiums remain unchanged year on year meaning that your premiums are quoted at a fixed entry level rate every year. The cashback option is not transferable from one vehicle to the next when you buy another car in future. Hence it is a choice between the CFG and Cashback.

5. The value of my car depreciates every year, how will that affect my premiums if on cashback option?
Traditionally, if you are on the CFG option, your annual premium will be reduced based on both discount and depreciated value of your car. If you are on the cashback option, you will forfeit the discount earned from the free claims experience in the previous insurance period. The reduction of the sum insured or vehicle value will certainly reduce the premium amount.

6. If i want to change my preferred option, when can i apply?
Changing between the two options will only be allowed at the renewal time of the policy. Mid-term changes will not be allowed.

7. How do I apply to change from CFG to cashback or vice versa?
You will have to send an email or a letter of instruction on or before your annual policy renewal date. You can send that to your broker or direct to SRIC if you are a direct client. Email the letter to underwriting@sric.sz

8. What if I cancel my policy before the end of the year. Will I get cashback?
Policies that are cancelled before the end of the term will be paid cash back only when they have been active for 9 months or more. In such instances, the client will earn a pro-rated cash back amount.

9. Can I add a new vehicle mid-term and still get the cashback?
In case of mid-term additions, you will earn a prorated cashback only if the additional car will have been covered for 9 months and above. Any additions below 9 months will not earn a discount nor will they earn a cashback at renewal.

10. Do I have to submit a claim to get my annual cashback?
No. If you are on the cashback option, we will automatically deposit the cash into your bank account immediately at the end of the annual insurance period. Your bank details must be submitted at the time of taking up the cash back option.

11. How are my premiums affected when I choose to apply the CFG on my motor policy?
Your premiums will reduce every year.

12. How are my premiums affected when I use the cashback option?
Your base rate remains relatively fixed every year. The only variable that can cause a reduction on the amount of premiums paid is the reduction of the sum insured/vehicle value.

13. Will I get cashback every-year for life so long as I don’t claim?
No. The cashback option is based on points which you accumulate from year 1 to year 7. The cash back will be paid out up to year 7 of no claims. Thereafter, the payouts will seize.

14. What if I claim for a windscreen repair or replacement, do I then forfeit my cashback reward?
Windscreen claims do not affect the cashback reward. Hence, at the anniversary of the policy the cash back reward would be paid out even if you have a windscreen claim.

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