Phoeniex’s solution based insurance

Phoeniex’s solution based insurance

Phoenix of Botswana continues to champion the solution-based insurance concept to bring the relevance of insurance products and risk management principles to Batswana. Most people are aware of some type of insurance product, be it motor insurance, or home insurance. The gap exists on the applicability of the insurance product to day to day life. Should asset/property insurance be part of the standard family budget? Who needs it? 

If it is, is it a cost or an investment? Insurance requires anyone owning property like household contents and or the house itself to protect them against risk. 

These instalments on solution-based insurance aim to debunk the myth surrounding insurance costs and demonstrate the impact on livelihoods and how products are designed to complement societal development. At Phoenix we define your insurance cover as an investment that you make to guarantee your peace of mind.

Peace of Mind

Peace of mind is defined as "a mental state of calmness or tranquility, freedom from worry and anxiety". To put it into context, one looks at the heavy rains that have been upon us recently, causing flood damage, hailstorm damage and trees falling on properties. Whether one is a tenant or a property owner, this weather phenomenon  raised concern and an element of worry about real or potential damage to houses, cars and/or household contents. Will one live to see the next day? How much damage is being  caused ? Do you have the money to effect repairs? Where does one you stay if the damage is extensive and requires to be done? 

The lack of answers to these questions disturb peace of mind in the uncertain times. The common thread in that worry centres around availability of resources in the event of these eventualities, more so with all the other economic challenges around. While Insurance cannot replace the sentimental value that people attach to their assets, it  will no doubt alleviate the stress and financial burden.  

Our philosophy

It is at times like these that one needs to be protected through responsive, relevant and affordable insurance products. To put it into context, for a premium of less than P100 a month, one can get cover for household assets worth P100 000. That P100 removes the worry of what if the storm damages your house. This cover can be taken out by the homeowner or tenant to cover furniture electricals clothing etc. One needs to look at this premium as an investment for one’s peace of mind.

Regarding renting a house or owning one, there other liabilities that you assume and  cannot overlook. For example  our household policy extends to cover liability as a tenant to the damage you may cause to the landlord’s property. As a tenant, your house helper in the middle of ironing gets a long WhatsApp call and the iron burns clothes and the cupboards or a crawling child knocks the TV over or breaks the glass table. Inevitably, you have a repair and replacement bill to deal with. But if you paid that P100 or less per month, you would have little to worry about. Phoenix will have your back. 

How do you insure 

Taking out an insurance policy is one of the easiest things to do. The first task is how to determine the amount or value of goods or property which will be referred to as the Sum Insured. Some basics on determining the sum insured follows.

Market Value / Depreciated Value 

Market value is the value of an asset as currently priced in the marketplace, i.e. at which it can be sold or bought on “as it is” basis. It would closely represent the present-day new cost of similar items/structures less the depreciation due to age/usage. This is, in most cases, different from the accounting book value or the original purchase price.

Reinstatement Value 

This represents the current “new for old’ replacement value of the asset or the price of a new same or similar asset. Often it is included by incorporating a Reinstatement Value Clause in the policy.

Your personal details will be required for compliance with the FIA Act.