Hollard Commercial Motor: Tracking Device Requirements for High-Value Vehicles

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Hollard Commercial Motor: Tracking Device Requirements for High-Value Vehicles

Insurance providers are continually updating their guidelines to align with shifting risks and market conditions. A recent update from Hollard outlines new security requirements for commercial motor vehicles with higher insured values.

New guidelines for vehicles over R500,000

Effective 29 May 2025, Hollard has outlined specific requirements for vehicles insured for R500,000 or more. These vehicles must be equipped with an early warning tracking and recovery system - a vital tool in combating the growing risk of theft and hijacking.

Key requirements:

    • Any insured vehicle with a sum insured of R500,000 or more must have a functioning early warning tracking and recovery device installed.
    • If the vehicle is stolen or hijacked and the required tracking system is either absent or not operational at the time of the incident, a 5% additional first amount payable will apply to the claim.
    • Hollard does not specify a preferred supplier or device model. However, the system must offer early warning functionality. This means it must either detect movement unauthorised by the driver or automatically alert the tracking company when the vehicle is moved.

Why these measure matter:

These requirements are designed to improve the security of high-value vehicles and support successful recovery in the event of theft. They also encourage proactive risk management, helping clients avoid penalties and ensuring claims are settled smoothly.

Understanding the latest insurer requirements can make all the difference when it comes to protecting your assets. Vehicle owners are encouraged to review their tracking systems to ensure compliance and minimise risk.