Terms and Conditions of Cover

As a Covered Merchant, you're covered under the Vuleka SME Cover Master Group Scheme, arranged by Vuleka and underwritten by Hollard. Your Certificate of Insurance confirms your specific cover, limits and fee.

The Scheme provides fixed-limit insurance cover designed for small and micro businesses. Fixed limit means the maximum amount payable for any claim is capped at the amounts shown in your Certificate of Insurance.

The cover applies to:

• Fire damage to stock
• Flood damage to stock
• Theft of insured stock

Each section has a maximum limit per claim, a maximum number of claims per year, and a maximum annual payout limit. These limits are shown in your Certificate of Insurance.

1. The arrangement. Vuleka arranges insurance cover for its members under the Vuleka SME Cover Master Group Scheme, underwritten by Hollard. Your cover is set out in this document and in your Certificate of Insurance.

2. When your cover starts. Your cover starts on the Effective Date shown on your Certificate of Insurance, once you have been accepted as a Covered Merchant and the applicable participation requirements have been satisfied. No claims will be paid unless the monthly fee for that month has been paid.

3. Continuing cover. Cover continues month to month for as long as you remain a Covered Merchant in good standing and the Master Group Scheme remains in force.

4. Maximum claims per year. A maximum number of claims may be made in any 12 month cover period under each section. If more claims are submitted in a single cover year, further claims may be rejected, or your participation may be ended or not continued. The maximum claims per year is shown in your Certificate of Insurance.

5. Cooling off period. If you change your mind after joining, you may end your Vuleka membership within 15 days of your Effective Date. If you do so and have not claimed, your monthly fee is refunded in full. After the cooling off period the standard cancellation process applies.

6. Important things to check. When you receive your Certificate of Insurance it is your responsibility to review it carefully, confirm your cover, Risk Address and limits, and tell us on WhatsApp within 15 days if any information is incorrect. Failure to tell us may affect your ability to claim.

7. SASRIA cover. Cover for special risks such as civil commotion, public disorder, strikes, riots and terrorism is provided by SASRIA SOC Ltd and is included for Covered Merchants under the Master Group Scheme. Where a loss may be covered by SASRIA, Vuleka submits the claim to SASRIA on your behalf and the SASRIA terms and conditions apply. You never contact SASRIA yourself.

8. Ending cover. You can end your Vuleka membership at any time by sending us a message on WhatsApp. Once we confirm it on WhatsApp, your cover continues until the end of the month you have paid for, and then ends. If your monthly fee is overdue, your cover ends once we confirm it. If you end your membership within the cooling off period in clause 5, your cover ends once we confirm it and your monthly fee is refunded as set out in clause 5.

9. Re-joining. Should you end your membership within the cover year and later re-join, cover will be arranged on the terms and conditions applying at that time. Claim limits will be reduced by any claims already paid in the 12 months from your original Effective Date.

10. Outstanding monthly fees if you re-join after cancellation or lapse. If your cover is cancelled or lapses and you later want to restart it, you must pay all monthly fees that have accumulated from the date your previous cover ended before your new cover can start.

11. Where your monthly fee goes. You pay one monthly fee of R199 to Vuleka, through Kazang, Shop2Shop, EFT or a cash deposit. Vuleka keeps its fee and brokerage, and pays the rest to Hollard, through Proficient Solutions as the Binder Holder, as the premium for the Master Group Scheme. Vuleka Distribution holds the group policy for all Covered Merchants. Hollard pays Vuleka Platform a commission and binder fee as allowed by law. You pay nothing on top of the R199.

These definitions apply across all sections of these terms and conditions.

• You / your / Covered Merchant - the shop named in the Certificate of Insurance that participates in the Master Group Scheme.
• We / us / insurer / Hollard - The Hollard Insurance Company Limited, the Insurer and Underwriter of the Master Group Scheme.
• Group Policyholder - Vuleka Distribution (Pty) Ltd, which holds the Master Group Scheme and arranges cover for Covered Merchants.
• Binder Holder - Proficient Solutions, which administers the cover under binder authority from Hollard.
• Master Group Scheme - the Vuleka SME Cover Master Group Scheme, under which cover is arranged for Covered Merchants. Covered Merchants do not hold individual Hollard policies.
• Certificate of Insurance - the document confirming your participation and cover under the Master Group Scheme, showing your Vuleka Reference, business name, Risk Address, Effective Date, cover period, monthly fee, applicable cover and limits. The most recent Certificate issued is the one that applies.
• Vuleka Reference - your unique reference as a Covered Merchant, shown on your Certificate of Insurance.
• Cover period / cover year - the 12 month period shown on your Certificate, used to apply annual limits and the maximum number of claims.
• Monthly fee - R199 per month, payable to Vuleka for your participation in the Master Group Scheme, including applicable taxes or statutory charges unless shown separately. Where cover begins mid month, a portion of that month is collected together with the first amount due. No claims will be paid unless the monthly fee for that month has been paid.
• Fixed limit cover - cover where each section has a fixed maximum amount payable per claim, a fixed maximum number of claims per cover year, and a fixed maximum annual claims limit per section.
• Limit / maximum limit (per claim) - the maximum we will pay for one insured event under a cover section, regardless of the actual loss or cost.
• Annual limit - the maximum total we will pay for all valid claims under a cover section during one cover year, regardless of the number of claims.
• Maximum claims per year - the maximum number of valid claims allowed under a cover section during one cover year. Once reached, further claims in that section may be declined.
• Insured event - a sudden, unexpected and identifiable event happening during the cover period that directly causes loss or damage covered under these terms and conditions.
• Claim / claims event - a request for payment following an insured event. A claims event includes all loss or damage arising from one incident or a series of incidents arising from the same cause.
• Business / SME - the small or micro enterprise named in the Certificate of Insurance, operating for commercial purposes, including informal traders, spaza shops, small retail outlets and service businesses, provided the business is lawful.
• Risk Address / insured premises - the physical address where cover applies, as shown in your Certificate of Insurance, including the building or structure the business operates from and any room, container or storage area at that address used for business purposes. Cover does not automatically apply to any other premises.
• Items covered - stock, as defined below, as per the last invoices supplied by you. Cover is only in force if proof of purchase of the stock is available.
• Stock - goods held by the business for sale or trade, including finished goods and trading inventory kept at the Risk Address.
• Proof of ownership / proof of value - invoices, receipts, supplier statements, bank statements reflecting purchases, stock purchase records, photos and videos, asset registers, or any other evidence reasonably required.
• Reasonable costs - costs that are fair and market related, not inflated above normal industry rates, supported by quotations or invoices, and necessary to repair or replace the damaged item. We pay the lesser of the reasonable cost or the applicable limit.
• Fire - combustion that escapes its normal confines and causes damage, including damage directly caused by fire, lightning and explosion, provided the event is accidental and not deliberately caused by you or anyone acting on your behalf.
• Flood - the accumulation, release or overflow of water that enters the Risk Address and causes damage, including heavy rainfall leading to surface water accumulation, overflow of rivers, streams, dams or stormwater systems, and water run off entering the premises. Excludes seepage, damp, rising moisture or gradual water penetration over time unless directly linked to a sudden flood event.
• Theft - the unlawful taking of insured stock with the intention to permanently deprive you of it. Theft must occur at the Risk Address and be supported by a police case number and evidence consistent with theft, including forced or violent entry where required.
• Burglary - theft involving unlawful entry into, or exit from, the Risk Address by forcible and violent means.
• Robbery - theft involving the use of force, violence, or threat of violence against a person at the Risk Address.
• Forced and violent entry - visible and physical damage to the Risk Address consistent with forcible entry or exit, including broken locks, forced doors or damaged barriers.
• Security protections - the physical protections at the Risk Address that reduce theft risk, including locks, burglar bars, gates and alarms. Where specific security measures are required, these must be complied with as a condition of cover.
• Underinsurance / inadequate limits - because this is fixed limit cover, you may suffer loss above the limits. Any amount above the applicable limit or annual limit is for your account. This is not treated as average (proportional settlement) unless expressly stated.
• Salvage - any damaged or recovered property that remains after settlement of a claim. We may request rights to salvage or reduce settlement by the salvage value.
• Fraud / fraudulent claim - any dishonest act, misrepresentation, intentional non disclosure, or submission of false documents or information connected to joining, continuing cover, claims, or any communication with us. Fraud may result in claim repudiation, cover being ended and recovery of amounts paid.
• Material information - information that would influence the decision to accept or decline the risk, apply conditions, set limits, or handle a claim.
• Reasonable precautions - the steps a reasonable business owner would take to prevent loss or reduce damage, including maintaining basic security, safe storage and prompt action to limit further loss.
• Mitigation of loss - actions taken after an insured event to reduce further damage or loss. We do not pay for betterment or upgrades.
• Betterment - improvements that place you in a better position than before the insured event. Betterment is not covered.
• Latest Certificate - the most recent version of your Certificate of Insurance, issued after your Effective Date or after any change to your cover. It supersedes all previous ones.

Cover under the Master Group Scheme operates on a fixed limit, fixed fee and fixed claim structure, designed to provide affordable protection for small and informal businesses. All cover is subject to the maximum limit per claim, the maximum number of claims per cover year, and the maximum annual payout limit shown in your Certificate of Insurance.

Once the applicable annual limit or maximum number of claims has been reached, no further claims will be paid under that section during that cover year. Unused limits do not carry forward to the next cover period.

Basis of settlement. Claims are settled on a reasonable repair or replacement basis, subject to the applicable limits. We pay the reasonable cost to repair the damaged property, or the reasonable cost to replace it with a similar item, whichever is lower, up to the applicable limit. We do not pay for betterment or upgrades, replacement with superior or new items where the damaged item was used, or any cost above the applicable limit.

Because this cover applies to stock, proof of ownership and proof of stock levels are mandatory. A claim for stock or trading goods will not be considered unless adequate proof of stock exists. Acceptable proof may include:

• Supplier invoices and purchase receipts
• Stock purchase records and delivery notes
• Bank statements showing stock purchases
• Stock registers or stock lists
• Photographs or videos of stock kept at the Risk Address
• Sales records or inventory systems
• Any other reasonable documentation confirming the existence and value of the stock

Multiple forms of proof may be requested before a claim is approved. You can send these directly in WhatsApp. If the existence or quantity of stock cannot reasonably be verified, the claim may be declined or adjusted accordingly. The burden of proof rests with your shop.

WhatsApp only. Need to make a claim? WhatsApp Vuleka and we will guide you through the process. The WhatsApp journey collects the information, photographs and supporting documents required. There are no forms to download, nothing to email, and you never contact Hollard or SASRIA yourself.

Your claim is then managed by Proficient Solutions, who will keep in touch with you on WhatsApp. If you would like to speak to the claims team after starting your claim on WhatsApp, you can also call them on 010 597 0837.

Timing. Tell us as soon as reasonably possible and within 30 days of the incident. For theft, report the theft to SAPS immediately and obtain a police case number. For SASRIA-covered events, the incident must be reported to SAPS within 48 hours and you must obtain a police case number.

Security and reasonable precautions. You must lock doors and windows when the premises are unattended, use reasonable physical security measures, protect stock from obvious environmental risks such as rain or flooding, and keep the premises in a safe and secure condition. Failure to take reasonable precautions may affect the outcome of a claim.

Risk Address. Cover applies only at the Risk Address shown in your Certificate of Insurance. Cover does not automatically extend to another premises, in transit, temporary storage locations, or markets, events or mobile trading locations.

Stock storage. Stock must be kept within the Risk Address, not left outside unsecured overnight, and storage areas must be reasonably protected from theft and weather damage. Claims relating to stock left unsecured or exposed to obvious risk may be declined.

Claim limit application. Each insured event counts as one claim, regardless of the number of items damaged or stolen in the same incident. For example, if a fire damages stock in several parts of the shop at the same time, this is one claim event. Multiple unrelated incidents at different times are separate claims.

Important limitation of cover. This cover is designed as first loss protection for small businesses. The limits may not cover the full replacement value of the business or all stock. It is intended to provide financial support to help the business recover, rather than full commercial replacement cover.

Duty of disclosure. You must disclose all material information when joining, including the nature of your business, the type of stock kept at the Risk Address, the approximate value of stock normally stored, and any previous insurance claims or losses. Failure to disclose may result in claim rejection, your cover being ended, or recovery of claims already paid.

Mitigation of loss. If an insured event occurs you must take reasonable steps to limit further damage, such as moving stock away from water during flooding, securing broken doors or windows after a burglary, or taking emergency steps to prevent fire spreading. We will not pay for loss that occurs because reasonable mitigation actions were not taken.

Electricity grid failure. Loss or damage caused directly or indirectly by an electricity grid failure is not covered. An electricity grid failure is an interruption to the electricity supply, for any reason, that affects an entire municipality, a province or the country at the same time, including any power surge when the supply comes back. This includes stock that spoils or is damaged because of it, and losses caused by water, telecommunications or sewage services failing because of it. Loadshedding is not an electricity grid failure: loss or damage during loadshedding remains covered, subject to these terms and conditions.

Cover provided. If your stock is damaged by fire, Vuleka will help you submit a claim. Claims are assessed under the following terms: cover applies to loss or damage to insured stock at the Risk Address caused directly by fire, lightning, or explosion originating within the Risk Address. Cover applies only to stock belonging to your shop. The event must occur during the cover period and at the Risk Address shown in your Certificate of Insurance.

Basis of settlement. Claims are settled based on the reasonable cost to repair or replace the damaged property, whichever is lower. We may pay the cost of repair, the cost of replacement with a similar item, a cash settlement based on reasonable value, or pay a service provider directly. We may request quotes, invoices or repair estimates before determining settlement.

Proof of stock. Where a fire claim involves stock, proof of stock is mandatory to confirm the existence, approximate quantity and purchase value of the stock. Where stock cannot reasonably be verified, we may adjust the claim value or decline the stock portion of the claim.

Claim requirements. Tell us on WhatsApp as soon as reasonably possible and no later than 30 days after the event, take reasonable steps to prevent further damage where safe to do so, and send a description of the incident, photographs of the damage, a fire brigade report if applicable, proof of ownership of damaged items, and proof of stock where stock is claimed. Vuleka will let you know if a loss assessor needs to visit your shop.

Temporary protection. After a fire you must take reasonable steps to protect remaining property, including removing undamaged stock from the affected area, covering exposed stock and securing the premises.

Not covered under fire. Gradual heating, smouldering or scorching without open flame; wear and tear or deterioration; electrical or mechanical breakdown unless it results in a fire; intentional acts by you or persons acting on your behalf; and illegal activities taking place at the premises.

Salvage and multiple items. Where a claim is paid we may retain the salvage or deduct its value from settlement. If a fire damages multiple items in the same incident it is treated as one claim event, and the total payout will not exceed the maximum limit per claim.

Cover provided. If your stock is damaged by flooding, Vuleka will help you submit a claim. Claims are assessed under the following terms: cover applies to loss or damage to insured stock at the Risk Address caused directly by flooding from heavy rainfall, overflow of rivers, streams or natural watercourses, stormwater overflow entering the premises, or sudden accumulation of surface water following severe weather. Cover applies only to stock belonging to your shop.

Basis of settlement. Claims are settled based on the reasonable cost to repair or replace damaged property, whichever is lower. Where repair is possible and economically viable, we may elect to repair rather than replace.

Proof of stock. Where flood damage affects stock, proof of stock is mandatory to confirm the existence, quantity and value of the stock prior to the flood.

Reasonable precautions. Store stock above floor level where possible, avoid storing goods directly on the ground in flood prone areas, and take reasonable protective measures during heavy rainfall. Failure to do so may affect settlement.

Not covered under flood. Gradual seepage or dampness over time; rising damp or moisture penetration through walls or floors; poor building maintenance; water leakage from plumbing systems; damage from roof leaks not linked to a storm event; and loss occurring away from the Risk Address. Flood cover applies only to sudden and identifiable flooding events.

Limits. A maximum of two flood claims are allowed per cover year. The maximum amount per claim and the maximum annual payout are shown in your Certificate of Insurance.

Cover provided. If stock is stolen from your shop, Vuleka will help you submit a claim. Claims are assessed under the following terms: cover applies to loss of insured stock at the Risk Address caused by burglary involving forced and violent entry, robbery involving violence or the threat of violence against you or your employees, or theft occurring during a burglary or robbery event.

Basis of settlement. Claims are settled on the reasonable replacement value of the stolen property, subject to the applicable limits. Settlement may be based on the replacement value of similar stock or items, verified purchase cost, or assessed reasonable value based on available documentation.

Mandatory police report. All theft claims must be reported to the South African Police Service and a valid case number provided. Failure to report the theft to the police may result in the claim being declined.

Proof of stock. Proof of stock is mandatory and must confirm the existence of the stock before the theft, the quantity stolen and the purchase value. If the existence or value cannot reasonably be proven, we may reduce the claim value or decline the stock portion of the claim.

Security requirements. The premises must be reasonably secured with lockable doors, lockable windows where applicable, and reasonable measures to prevent unauthorised entry. Where forced entry is required, there must be visible signs of forced and violent entry such as broken locks, damaged doors, forced gates or shutters, or broken windows.

Robbery. Where robbery occurs, forced entry is not required, but you must provide details of the incident and a police report. Additional supporting documentation may be requested.

Not covered under theft. Theft without evidence of forced entry unless robbery occurred; theft by you, your employees, partners or family members; stock shortages discovered during stocktaking; misplacement or unexplained disappearance of property; loss occurring away from the Risk Address; theft from vehicles or goods in transit; and fraud or dishonest acts by you or your employees.

Claim requirements. Tell us on WhatsApp as soon as reasonably possible and within 30 days of the incident, report the theft to the police immediately and obtain a case number, and send a description of the incident, the police case number, photographs of forced entry where applicable, proof of ownership or stock records, and any additional documentation requested. Vuleka will let you know if a claims assessor needs to inspect your shop.

Limits. A maximum of two theft claims are allowed per cover year. The maximum amount per claim and the maximum annual payout are shown in your Certificate of Insurance.

• Vuleka Distribution - Group Policyholder
• Vuleka Platform - Broker & Insurance Intermediary, FSP No. 55203
• The Hollard Insurance Company Ltd - Insurer & Underwriter
• Proficient Solutions - Binder Holder

If anything in these terms and conditions is unclear, message us on WhatsApp or email insurance@vuleka.com and we will explain it in plain language. These terms and conditions must be read together with your Certificate of Insurance, which shows the cover, limits and monthly fee that apply to your shop.