Value your car - 23 Oct 2009 12:32
Check your car insurance policy. It probably states that policy is only valid if the vehicle is roadworthy. If you have allowed wear and tear to take its toll on your car, or if your license has expired, you may be liable for the cost of repairs to or replacement of your vehicle in the event of an accident.
An unlicensed car is “unroadworthy”
In our first case study, the owner of the car had forgotten to renew his vehicle license when he had an accident. Although the car was in excellent condition and had been regularly serviced at the time of the accident, the insurer refused to pay out on the basis that, in terms of the policy, the car was technically “unroadworthy”.
Insurer must prove cause and effect
In our second case study, a vehicle hit and killed a drunken pedestrian who had fallen in front of the car, despite swerving. When the driver of the vehicle lodged a claim, the insurer found that: a. the tread of the rear tyres was well below the legal limit, and b. that the vehicle could have successfully swerved had the tread of the tyres been deeper.
However, in our third and final case study, although the tread on the rear tyres of the offending car was found to be below the limit, it was ruled that the car pile-up could not have been avoided. The Ombudsman for Short-term Insurance subsequently requested that the insurer process the claim.
The moral of the story is that you should maintain your vehicle with regular services and by renewing your vehicle license annually. Do this, if not to ensure that you are insured in the event of an accident, at least to prevent an accident, whether minor or serious, that can be easily avoided.
Check your car insurance policy. It probably states that policy is only valid if the vehicle is roadworthy. If you have allowed wear and tear to take its toll on your car, or if your license has expired, you may be liable for the cost of repairs to or replacement of your vehicle in the event of an accident. An unlicensed car is “unroadworthy”
In our first case study, the owner of the car had forgotten to renew his vehicle license when he had an accident. Although the car was in excellent condition and had been regularly serviced at the time of the accident, the insurer refused to pay out on the basis that, in terms of the policy, the car was technically “unroadworthy”.
Insurer must prove cause and effect
In our second case study, a vehicle hit and killed a drunken pedestrian who had fallen in front of the car, despite swerving. When the driver of the vehicle lodged a claim, the insurer found that: a. the tread of the rear tyres was well below the legal limit, and b. that the vehicle could have successfully swerved had the tread of the tyres been deeper.
However, in our third and final case study, although the tread on the rear tyres of the offending car was found to be below the limit, it was ruled that the car pile-up could not have been avoided. The Ombudsman for Short-term Insurance subsequently requested that the insurer process the claim.
The moral of the story is that you should maintain your vehicle with regular services and by renewing your vehicle license annually. Do this, if not to ensure that you are insured in the event of an accident, at least to prevent an accident, whether minor or serious, that can be easily avoided.