Case Study: Maksure Claims

Maksure’s engineering and claims team recently negotiated a successful settlement on a USD1 150 000 330/132 kv transformer claim that was originally denied in full by the insurer and reinsurers.

Our Challenge

A southern African power and energy client suffered a significant loss on one of their transformers due to collapsed 11kV Tertiary Winding and failure of insulation resistance on the HV windings.

This meant that the transformer had to be written off as it was uneconomic to repair. The claim was repudiated by the insurer and reinsurers as they argued that the loss was due to a fault or defect in design as contemplated in exclusion 1.7.4 in the insurers policy wording. The insurer also argued that the loss was solely caused by gradual deterioration which was not covered by the policy.

The insured sought Maksure’s engineering and claims team advise on the claim as it had happened one and half years before Maksure’s appointment to handle the client’s insurance and reinsurance needs.

Our Solution

Drawing on our extensive engineering and claims handling knowledge and experience, Maksure’s team challenged insurers’ conclusion and interpretation of the cause of loss and policy wording. Our highly skilled engineers argued and proved that the transformer did not suffer a gradual deterioration because of design. Further, they proved that the transformer did not develop an internal fault while in service, but instead, suffered a sudden connection failure on the tertiary winding bushing following a high current external fault that occurred on the 11kV cable that links the unit to the 20MVAr reactor.

Using our strong relationships with insurer and reinsurers we were able to negotiate a full settlement, at a level which was “very much appreciated” by the direct client and cedant.

This is a good example of how Maksure’s experienced engineering and claims team adapts quickly to overcome problems, using established insurer relationships built on trust to successfully negotiate the best outcome for our clients.

For more information regarding our expertise, contact our Chief Operating Officer, Mr Knighty Mawere at +27 11 805 0086.

About Maksure Risk Solutions

Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.