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INSURANCE LAW - FAQ's             Back to home page

 

  1. What are the different types of motor-vehicle Insurance? (compulsory with instalment sale agreements)
  2. Who pays what in an accident if it's your fault?
  3. Who pays what in an accident if it's the other party's fault?

 

1. What are the different types of motor-vehicle Insurance? (compulsory with instalment sale agreements)

 

    • Comprehensive cover. This will protect you from loss or damage in accidents, highjacking, natural disasters and fire. It also comes in handy when third parties make a claim against you for damage you are responsible for.

 

    • Third-party, fire and theft insurance. Covers some of the same things as comprehensive policies, but you will not be covered if you’re involved in a car accident. You will have to pay these costs from your own pocket.

 

  • Third-party insurance. This is the cheapest option only covering the damage (amd associated costs) you have caused to someone else’s vehicle. You may be able to get cheap insurance, but you want to avoid having to pay a fortune for repairs should you be involved in a car accident.

 

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2. Who pays what in an accident if it's your fault?

 

WHO PAYS WHAT IN AN ACCIDENT?
IF IT'S YOUR FAULT


YOU HAVE...

 

 

Comprehensive cover

3rd-party cover

No cover

THE OTHER PARTY HAS ...

Comprehensive cover

You pay your excess. Each Iinsurer takes care of its client. The other Insurer will claim from your Iinsurer, including the other party's excess.

You pay your excess. Damage to your car is not covered. The other Insurer will claim from your Iinsurer; including the other party's excess.

You must pay for the damage to your car. The other Insurer will claim full loss for the other party directly from you, including his/her excess. You could be taken to court if you don't pay.
 

3rd-party cover

You pay your excess. Your Insurer takes care of you. The other Insurer will claim from your Insurer, including the other party's excess.

You pay your excess. Damage to your car is not covered. The other insurer will claim from your Insurer, including the other party's excess.

You must pay for the dmage to your car. The other party can claim directly from you for his/her loss. You could be taken to court, if you don't pay.

No cover

You pay your excess. Your insurer takes care of you. The other party can claim directly from your insurer. .

You pay your excess. Damage to your car is not covered. The other party can claim directly from your Insurer.

The other party can claim directly from you for his/her loss. You could be taken to court if you don't pay.

 

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3. Who pays what in an accident if it's the other party's fault?

 

IF IT'S THE OTHER PARTY'S FAULT


YOU HAVE...

 

 

Comprehensive cover

3rd-party cover

No Cover

THE OTHER PARTY HAS...

Comprehensive cover

Each Insurer takes care of its client. Your Insurer will refund you your excess after claiming against other party's Insurer (some Insurers portion the excess refund according to the degreeof fault).
 

Your Insurer will not act on your behalf. You can claim from the other Insurer.

You can claim from the other party's Insurer.
 

3rd-party cover

Each Insurer takes care of its client. Your Insurer will refund you your excess (or a portion of it) after claiming against the other party's Insurer.

Your Insurer will not act on your behalf. You can claim from the other Insurer.

You can claim from the other party's Insurer.

No cover

Your Insurer will cover you and will try to recover the damages directly from the other party. The case may go to court. Your excess will be refunded if your Insurer is successful in recovering the damages.

Your Insurer will not act on your behalf. You can claim directly from the other party, and take him/her to court if neccessary.

You can claim directly from the other party, and take him/her to court if neccessary.

 

Information courtesy of Sanlam. Note that the contents serve as a general guide. Each case is based on its own merits and is subject to the specific policy conditions applicable.

 

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