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Understanding Your Pineapple Policy: Fundamental Terms and Definitions

Fundamental Terms & Definitions

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Written by Ishmael Hlapolosa
Updated this week

nsurance documents can feel like a different language. But, once you understand the basics, the whole picture makes a lot more sense! Your Pineapple policy uses a few key terms across all types of cover (whether Motor, Household Contents, or All-Risk). Think of this as your “dictionary” for navigating your policy without needing years of insurance experience.

The Insurer and the Policy's Purpose:

  • Insurer/We/Us/Our: This refers to us, Pineapple. We’re underwritten by Old Mutual Alternative Risk Transfer Insure Limited (FSP 49551), a licensed Non-Life Insurer. That’s the official way of saying: “We’ve got your back, and we’re regulated to do so.”

  • Purpose of Insurance: The goal isn’t to make a profit from your misfortune. It’s to put you back in the same financial spot you were in right before a covered event happened, minus your “Excess.”

Your Policy's Lifespan and Limits:

  • Period of Insurance: Pineapple’s Insurance Cover runs on a monthly basis. Once you pay your insurance premium for the month, you have protection from your Cover Start Date to midnight on the same day a month later. Provided that you pay on time, of course (no premium = no cover. Simple as that.)

  • Cover Start Date: The exact date your insurance kicks in or when changes to your cover take effect, as per your Policy Schedule.

  • Compensation Limit: The maximum amount Pineapple will pay for an insured event. This amount is clearly set out in your Policy Schedule.

  • Excess: The part of the claim you pay before Pineapple steps in. All Excess amounts include VAT.

Key Players and Concepts:

  • Policyholder: That’s you! The policyholder is the person who owns the policy and stands to lose financially if something insured goes missing or breaks.

  • Premium Payer: Usually also you, but it can be another person. This is the person whose bank account gets debited each month.

  • Covered Events: The perils, a.k.a. “bad stuff” you’re insured against, like theft, accidents, fire, storm, etc. The list of specifics lives in your Policy Schedule.

  • Third Party: Any other person you might become legally liable to. For example, if you cause damage to their property or injure them.

  • Total Loss of an Insured Item: When an insured item is completely gone (stolen, destroyed, or beyond economical repair). Basically: a write-off, meaning the insured item is beyond saving.

  • Consequential Loss: Knock-on effects of a covered event. Example: Your washing machine floods the flat, and your water bill doubles. That bill would be a consequential loss, and it’s generally not covered unless your policy specifically says otherwise.

Financial and Legal Framework:

  • All limits and premiums include VAT (at the standard South African rate).

  • All amounts are in Rands.

  • Your policy is one document: the info you provided at application + your Policy Schedule + the terms and conditions all fit together. If there’s ever a conflict, the Policy Schedule takes priority.

Knowing these terms means reading your policy won’t have you scratching your head. Once you understand the language, you’re in a much better position to manage your cover and avoid surprises when you need it most.

*The information provided here is for informational purposes only. For the full terms and conditions, please consult your policy wording.

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