March 22, 2022
Lerato, a contractor, won a big tender to install transformers in the rural areas of the Mountain Kingdom. Her insurance broker proposed and placed a Contractor’s All Risk policy for the works. Unfortunately, as fate would have it, during the rainy season, lightening damaged some of the transformers, days before the handover to the Principal. As a standard procedure for the submission of claims of this nature, a technical report is required, and an expert is expected to detail the cause as well as the extent of damage.
Lerato’s broker requested the necessary claims documents, the technical report, and quotations to repair the damage. At the same time, Lerato contacted her suppliers and electrical engineers to come to the Mountain Kingdom in order to test and quote for the damaged transformers. The suppliers who are based in South Africa demanded an advance payment for transportation, testing and accommodation for them to provide the services requested by Lerato. Due to their rare skills, which are not available in the Mountain Kingdom, Lerato had no alternative but to consent and engage the experts based in South Africa.