Car Insurance Law

car_insurance_lawsWe would like to provide our vehicle owners and car insurance policyholders with a brief overview of the most important laws in the regulatory framework governing car insurance in South Africa. These laws include:

  • Short-Term Insurance Act (Act 53 of 1998 as amended)
  • Policy Holder Protection Rules (Short-term Insurance), 2004
  • Financial Advisory Intermediary Service Act (Act 37 of 2002)
  • Financial Services Ombud Schemes (Act 37 of 2004)

Introduction

The insurance sector in South Africa is governed mostly by statutory law through various acts promulgated by parliament. The industry is also specifically regulated by the Financial Services Board in terms of the legislation and regulations promulgated by parliament.

How does this affect the vehicle owner and which are the most important aspects in Car Insurance Law that the consumer needs to know?

We would like to provide a brief overview of the Car Insurance laws and how they impact on the rights of our car owners, consumers, financial service providers etc

Short Term Insurance Act 53 of 1998

The Short-term Insurance Act (amongst other things):

  • Provides for the registration of short-term insurers.
  • Control the activities and administration of short-term insurers and intermediaries.
  • Prescribes financial requirements, solvency and liquidity.
  • Regulates policies and business practices and offers policy holder protection.
  • Regulates commissions, premium collection and claims handling.

Financial Advisory and Intermediary Services Act 37 of 2002

The objective of the FAIS Act is to regulate the rendering of certain financial advisory and intermediary services to clients. In essence, the FAIS Act deals with:

  • Regulating brokers as intermediaries and advisors, and Includes various other professions
  • The role of the Ombud is explained and formulated.

There is also the following subordinate legislation to FAIS:

  • General Code of conduct for authorised financial services providers (FSP’s).
  • Determination of Fit and Proper Requirements.

It is illegal for anyone who has not applied to the Financial Services Board to be licensed as a financial service provider, to give a consumer financial advice or sell a financial product. This law protects the consumer from inappropriate financial advice, and consumers can take action if they are given bad advice.

In terms of this law, anyone or any institution selling a financial product or giving financial advice for a fee or commission must, in all their dealings, meet certain minimum requirements; behave honourably, professionally and with due diligence; provide appropriate advice; and are subject to disciplinary procedures if they do not adhere to the FAIS Act.

A financial service provider (FSP) or an FSP representative must always provide financial services honestly and fairly and with due skill, care and diligence. The service must be in the customers’ interests, and uphold the integrity of the financial services industry.

If a consumer receives inappropriate advice or if a financial service provider (FSP) or FSP representative has not followed the proper procedures, the consumer is entitled to complain to the Ombud for Financial Service Providers. A determination by the Ombud is legally binding.

Policyholder Protection Rules 2004

The Policyholder Protection Rules were issued in terms of Section 55 of the Short-Term Insurance Act and Section 62 of the Long-Term Insurance Act, and replace the rules first issued in 2001.
The Policyholder Protection Rules are separate from those in the code of conduct for financial advisers set out in the Financial Advisory and Intermediary Services (FAIS) Act.

The rules have a strong consumer protection bias, and ensure that policies are entered into, executed and enforced in accordance with sound insurance principles and practice, in the interests of all the parties and the public.

The Short-Term Insurance Policyholder Protection Rules apply to any short-term policy, such as motor vehicle or household policies, or public liability policies (for example, those covering third party payments after motor vehicle accidents), where the policyholder is a natural person. The short-term rules do not apply to commercial policies, such as those which solely cover your business.

General Provisions
In terms of the rules, an insurer must inform the consumer, in writing, of a policy issued to them. The insurer must advise the consumer of any internal complaint resolution systems and procedures, as well as full particulars relating to the short-term and long-term insurance ombudsmen.

No insurer may ask or induce a consumer to waive their rights in terms of the rules, and if they do give any such waiver, it will be regarded as void. No insurer or intermediary may allow a consumer to sign a blank or partially completed form necessary for entering into a policy.

Direct Marketing
A direct marketer is an insurer who uses direct marketing methods, rather than working through an intermediary or broker. Typically, direct marketers use telephone sales consultants and advertising to sell their policies.

The Policyholder Protection Rules relating to direct marketers are similar to those laid out in the FAIS Act that applies to insurance brokers.

Financial Services Ombud Schemes Act 37 of 2004

The Financial Services Ombud Schemes Act (amongst other things):

  • Creates a mechanism for statutory recognition of voluntary schemes (long-term insurance ombudsman, short-term insurance ombudsman and banking ombudsman).
  • Determines minimum standards required for recognition.
  • Provides for an independent controlling body for each scheme.
  • Recognises voluntary schemes.
  • Provides consumer recourse by way of holistic, standardised mechanisms for client complaints with regard to the financial institutions or services in a procedurally fair, informal, economical, equitable and expeditious manner.

Conclusion

On the Car Insurance Blog we will strive to assist vehicle owners, financial advisors, insurers and industry bodies in creating awareness of car insurance and the importance of car insurance for road safety. This will also include the objectives to create awareness of:

  • Legislation in the car insurance industry
  • Legal requirements in providing car insurance advice
  • Consumer protection to vehicle owners and car insurance policyholders
  • Criminal law and car insurance fraud
  • Contesting car insurance claims /disputes
  • Role of the Ombudsman in achieving fair adjudication of insurance disputes
  • Discussion of Decisions made by the Ombud for Short Term Insurance

We will discuss these important aspects in Blog Posts and seek to facilitate interaction with car insurance policyholders.

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65 Responses to Car Insurance Law

  • By Rochelle August 12, 2010 - 10:44 am

    I’ve submitted an vehicle accident claim to my insurance in July 2010 and after 3 weeks was told that I had judgements on my name of which I wasn’t aware, and based on this they say my claim could be rejected. They are currently investigating whether I signed in acceptance of these judgements. I have never seen or received anything.
    If this is so imperative to approving claims why are potential applicants not ITC checked before inception of the policy. I’ve posed this question to them and they say it’s impossible to check each applicant… Instead they diligently receive your premiums month after month. Can a claim be rejected solely on this reason?
    Please advise urgently.

    Thanks

  • By Daniel Theunissen November 27, 2010 - 2:41 pm

    Can an insurance company claim money from me three years after an accident? I was involved in an accident in 2007 which my insurance company at the time dealt with. Three years down the line out of the blue I receive a claim from a third party. I have changed insurance companies in the meantime and am not sure how to deal with this. Could you please give me advice? Thank you!

  • By Kath December 5, 2010 - 5:11 pm

    I am new to South africa and have been given conflicting advice about car insurance in terms of insuring cars of low value. If I was to buy a cheap car ( eg 15,000 rand) for the duration of my stay would i be able to licence it without an ID number and does it need to be insured? I have been told that cheap cars under a certain value do not need to be insured but I am concerned should I be involved in an accident or hurt somebody what would happen then? Thanks

  • By jonckie@arrivealive.co.za December 6, 2010 - 10:53 am

    Car Insurance in not yet compulsory in South Africa – but it is always best to ensure that you are protected against all the South African road hazards by being insured.

  • By Carolynne December 9, 2010 - 4:12 pm

    Hi,

    Not sure where else to ask this question, but I have a problem and am hoping someone may be able to help in terms of what my rights are. My car tyre burst, damaged the car – car went in for repairs. Was going to collect my car, insurance covering everything etc..then company phoned to say they sent car up the road to replace the tyre AND when the tyre fitment centers driver drove my car back to the workshop he had an accident.

    Now, the workshop reckons it has completely devalued the car and is expensive to fix. I want the car to be a write off, as it really is destroyed! Does anyone know what I should push for, and what the best solution here would be? Thanks

  • By jacob January 6, 2011 - 9:37 am

    Hi,

    I was involve in an accident and that was not my fault so my insurance want to write my car off as they say my car damage is above my car value. I requested the second assessor so they saw the car and it cost 20% less of what my insurance quoted. ,The guy agreed that he was wrong I send the details of the guy to my insurance and my insurance even spoke to the guy. So I need my car to be fixed and recover the money from the guy’s insurance.

    Please advice , thanks

  • By David February 15, 2011 - 10:41 am

    If a person without insurance drives into my car and wrecks it, what recourse do I have? Will they pay damages, got to jail, or get off scott free?

  • By Neo February 23, 2011 - 2:05 pm

    I was involved in an accident in June 2010 where I was crashed into and as a result, I crashed into someone else. I filed an accident report the day after it happened and everything was fine with my insurance. This month, I got a call from the guy that I crashed into’s insurance. I was told by them that the guy that crashed into me alleged that I cut infront of him and he therefore did not have enough time to brake. His insurance then called me and asked me again what happened (I now know that I was not supposed to entertain their questions but at the time I did), I told the lady the story (that I changed lanes from right to left preparing to enter the offramp but had checked where the other car was…I also added that he could have been about 2 or 3 seconds behind me). They then conculded that I was at fault because I said 2 or 3 seconds and would therefore not pay the claim from the other insurance. The other insurer (of the guy I crashed into)then called me to tell me that they are going to sue me for the crash. Is that legal? My accident report was pretty clear on what had happened and shouldn’t they have used that report instead of try to get me to make a fault after 8 months it had happened?

  • By Kaolin Sewuth May 8, 2011 - 9:42 pm

    Hi there

    My dad was driving my car and he got hijacked. I did not submit his name as one of the drivers of my car. My dad does not use my car generally, just that it was an emergency and he was force to. Will the insurance company still cover me for that?

  • By Mohlala May 10, 2011 - 5:24 pm

    Can a claim be rejected on the basis that you had uncovered months for your car? Whilst this is not outlined in their terms and conditions documents or in any other document of the policy. 

  • By jonckie@arrivealive.co.za May 12, 2011 - 7:35 pm

    Yes They should!! Only if he was a regular driver you would have had to indicate it as such!

  • By charnel May 20, 2011 - 1:35 pm

    Hi, I caused an accident in feb this year, I dont have insurance, but the guy that I hit, was driving his company vehicle, they have insurance, when they phoned me 1 week after the accident, they asked if I can pay the damages of R51 000 so I said I wont be able to afford it, they then asked telephonically if I can pay the exess amount and I said yes but only if they will allow me to pay off, because I dont have all the cash. Yesterday I received a letter of demand from the insurance company’s laywer and they want me to pay R51 000. I need help, what do I do? I dont want it against my name, I dont want a bad name, but I dont have money.

  • By samantha May 20, 2011 - 7:47 pm

    i had a minor acciedent, so claimed, i then get a phone call that they are not accepting the claim as they have done a back ground check and that i told them i had two acciedent not three with previous insurance. Why did they not do a back ground check first, its as though the do this on purpose to try catch you out. DO I HAVE ANY WRIGHTS. what can i do, 

  • By Karina June 8, 2011 - 2:40 pm

    Hi, please tell me if a car is still covered within the legal 21 day grace period of an expired liscense disc?

  • By Benita Pretorius June 15, 2011 - 2:44 pm

    Hi need advice my son was in an accident with my car, he took my car without permission and had no licence so my insurance does not pay any claim, two cars involved as per my son the first car just turn into a street so the car behind this car brake, and the went into the car in front and my son went into the car in front of him, so both cars claim money from him because they told him as the back car he push the car in front of him into the first car, but my argument is were was the distance of both cars I think he is responsible for the car he went into not the other car please help with this question?

  • By Rashieda Lawrence July 22, 2011 - 10:30 am

    I was in a car accident on 14/05/2011. I contacted Firstroad for towing assistance and it was authorized that Lansdowne Towing (Lansdowne Towing a division of AMM Towing) assist with towing the vehicle to SMD Stikland. The same morning of the 14/05/2011 I went to Lansdowne towing premises and my vehicle was still at their premises, they informed me that I should make a payment for the towing. On the 16/05/2011, Telesure requested that Lansdowne towing deliver the vehicle to SMD Stikland. The vehicle was then delivered to SMD Stikland. The problem is that I received a tow reference at the scene of the accident and yet I was requested to pay for towing and Telesure (Payment Dept) also paid for the same services. Staff of Telesure and First Management phoned Johan re: this matter already and he refuse to refund the money he owes me. Please advise urgently.

  • By Phale August 12, 2011 - 4:00 pm

    How do we assist the Insured’s if and when thier claims are rejected we are in the business of assiting them

  • By ESME August 16, 2011 - 3:37 pm

    WE WERE INVOLVED IN A ACCIDENT OUR CAR IS NOT INSURED BUT THE PERSON WHO MADE A U-TURN IN FRONT OF US DOES, HE SAID WE COULD CLAIM AGAINST HIM AND HE DID ADMIT ON THE ACCIDENT SCENE THAT IT WAS HIS FAULT AND HE DID NOT SEE US. WE SUBMITTED THE CLAIM AND NOW IT WAS DECLINED ( BELOW IS THE REPORT FROM THEM ) WE WOULDN’T BE ABLE TO SPEED AS WE DID STOP AT A RED TRAFFIC LIGHT AND THE ACCIDENT TOOK PLACE APPROX 40 METERS FURTHER – WE ONLY DRIVE A TOYOTA 13HUNDRED AND IT IS NOT A FAST CAR…. WHAT WOULD BE THE NEXT STEP – WE NEED OUR VEHICLE TO BE REPAIRED – WE DID NOT MAKE A U-TURN IN FRONT OF OURSELVES :-(

    - Our client advises that he had indicated his intention to turn right and was stationery waiting for oncoming traffic to clear when the collision occurred
    Should your driver have travelled at a reasonable speed he would have fore saw our client’s stationery vehicle and would have been able to brake and avoid the collision altogether.
    A reasonable driver, keeping a proper lookout would have seen the stationery vehicle and attempted to avoid the collision, however based on the damages it is clear that your driver proceeded in the same direction and speed, resulting in the collision.

  • By Pierre Britz August 24, 2011 - 11:02 am

    Good day,

    I drove over a stone/brick in traffic yesterday (23-8-2011). I had to have the tyre replaced. I had it done at Tiger Wheel and Tyre. Very helpfull and friendly people. The person that helped me told me that I would have to replace the 4 remaining tyres on my car at the end of this yeas seeing that the tyres are 5 years old. According to him if I was involved in an accident that my insurance would pay if the tyres are more than 5 years old. There are still 5mm tread on the tyres left. Is this true about the age of the tyres.?The date on the tyres are 2006 and my car is a 2008 model.
    Regards,
    Pierre.

  • By Dishon September 19, 2011 - 3:11 pm

    I was involved in an accident a month ago. I drove into the back of a car in traffic. I am not insured but the other car was. The driver said that I would only be liable to pay the excess of his car (which was R4500) and that was our agreement. Then his insurance phoned me and said that I am liable for R11 450 for the entire claim. Is there anything I can do? What does the law say about this?

  • By Elia September 22, 2011 - 2:49 pm

    Hi there. Who can i phone to see if a company is registed to provide insurance for cars?

  • By Haley October 26, 2011 - 11:34 am

    I was on holiday in September 2011 and my vehicle was stolen. The insurance company has checked out that all my security requirement as stipulated in my policy has been met, kniow they are questioning who when why and what on how I managed to get home. I am know being harrased and questioned for receipts and proof that I was actually there on holiday. Who can advise or help me on this as it has been a month now and I am at my wits end…..

  • By Brenda October 27, 2011 - 9:06 pm

    @Elia – If you have doubts, then it is most probably not a reputable company and I would not recommend that you even consider taking out insurance with them.
    @Haley – I wish I was allowed to hazard a guess about which insurance company you’re referring to here, but I’m sure I’m probably right. A reputable company (who uses brokers) would not ask such silly questions. If you reported the loss to the SAPS and Tracking Company (if relevant), then finalisation of the investigation should be a relatively simple task. I suppose it’s understandable for them to ask how you got home after the loss of the vehicle, but asking for receipts to prove that you were on holiday is RIDICULOUS! Contact the Ombudsman if your claim is still outstanding! Good luck!

  • By Tebogo October 29, 2011 - 5:13 pm

    Kindly seeking assistace, my son was looking at car, the sales man approached him with regards to purchasing a vehicle, by then he had a learner’s license only. The agents promised him that he would assist him in getting the car, of which he did. My son thought that he would get a license and would drive the car freely. The car was then finance through a major bank of South Africa and was insured by budget insurance. After a couple of weekis while learning to drive, he was involved in a horrific accident which left him traumatised even now. The car was on his name and same as the insurace. My question is ” Is it possible for the Bank/Insurance company finance or cover for a vehicle on a driver who does not have a valid SA License? ” Kindly assists as he cannot afford now to pay for the car, I would like to take the case further. Thanking you.

  • By Louise Harrison November 5, 2011 - 7:01 pm

    After my daughter’s car was written off by a taxi, we were told by Miway, the insurer, that we would receive market value in compensation which infers the value of the car on the open market, which also infers that it would be replaced with like. We have discovered that market value is calculated according to a book which the insurance industry recognises but was not told to us at the time of taking out the insurance, which value no way near replaces the lost vehicle. Do we have to accept a value decided by the insurance company in whose interest it is to reimburse us as little as legally possible. Who in their right mind would insure a vehicle with a company, knowing that on total loss they would only be refunded sufficient for a deposit on a replacement?

  • By Ryan Flockhart November 14, 2011 - 2:03 pm

    I was involved in an accident on the 24/09/2011 there were five cars and a truck. The truck driver lossed control and my car was the thrid vehicle to be hit. I am a student and do not have insurance as it is out of my financial range. I have submited a third party claim aganist the Truck company insurance. i am now with out a vehicle. Is there any law as to how long it should take for the claim to be paid out.
    I wanted to claim for the towing storage and hire vehicle but the insurance company is refusing to fit these bills. Can you tell me what I am entitled two and how long before this entitlement is allowed to take before payment is made?

  • By TM January 16, 2012 - 5:09 pm

    i was involed in an accident in February 2011. My car was written off and the insurance (FIRST FOR WOMAN) gave me a new vehicle. The problem is, the car i insured with the insurance company had (FACTORY FITTED CENTRAL LOCKING). The car they replaced it with has no factory fitted cetral locking. The alarm system they installed if faulty and the central locking they intalled in my car after i received it is faulty, only 3 door open when i press the remote and the central locking is not linked to the boot of my car which means i now have to open my boot manually and lock it mannually as the central locking they put in my car is not linked to my boot. they told me if i want to link my boot the the central locking that they had installed i must pay for it myself and if it gives me problems i must not complain to them i must complain to the guys they paid to install this fauly central locking. as it stands, when my alarm is activated, you can enter my car thouhg my boot and the alarm does not even go off. They refuse to give me a car with factory fitted central locking. They claim they never knew my car had central locking and that now that they have given me this car with many alarm problems , im stuck with it and i must fix those problems at my expense? the manager also told me that if i’m not happy with the downgrade of a car they gave me i must take it furter and contact my lawyers knowing very well that i do not make a lot of money and would never be able to afford a good lawyer. pls advice. i’m really frustrated.

  • By Karen Carstens January 26, 2012 - 12:58 pm

    I have taken out car insurance 3 weeks ago, but decided to cancel it as I found a better deal somewhere else. The insurance company requires a 30-day notice period. Therefore I was advised that I will have to pay a pro-rata premium for cover until the notice period expired. Is the required 30-day notice of cancellation legal?

  • By Lorraine February 20, 2012 - 3:08 pm

    I was quoted a premium by Regent for a 2012 Hyundai i10 1.25GLS of R492.76, at least 3 times the Regent agent told me the same price. I took delivery of the vehicle and called her back to accept the quote, and drove my car out of the showroom.
    The following Monday I receive a call to inform me “oh we made a mistake, it should be R750″. To say
    I was not amused is an understatement! They had quoted me on a 2008 model, please tell me, do people not listen to consumers or are they not bothered?? Now I just received a call to tell me ” We can give you a 20% discount on the new premium, it will now cost you R703 a month” Well Regent your service is pathetic, and your staff should LISTEN!!! Needless to say my business will be going elsewhere.

  • By w botha February 23, 2012 - 1:33 pm

    would like to find out my wife was in an accident while parked we had a fall out with insurence company because they wanted to use second hand parts to fix my car and i refused.is it allowed to use second hand parts?they have sent me a notice of cancelation of my policy can i claim my premiums back

  • By admin February 23, 2012 - 1:58 pm

    @ w botha The basic principle of insurance is that an insurer should place you back in the same position you were in, before you suffered the loss you are claiming for.

    Most reputable insurers will only use second hand parts for “non mechanical” replacements … non critical parts like windows, panels, bumpers etc may be second hand.

  • By Stefan March 13, 2012 - 11:03 am

    @ dishon: have just fallen into the same situation. the insurance company is claiming R16,200. if anyone could help me with this matter pls. it is urgent thank you.

  • By Vincent Patella March 14, 2012 - 2:01 am

    I am an American, and I plan to rent a vehicle from Avis in May for a 2+ week holiday in Kruger National Park Is liability insurance needed in South Africa to protect me from the possible claims of third parties and their vehicles with whom I may become involved in an accident? Of course, I am aware of the need to insure the vehicle and its passengers, but here I am asking about people who are not passengers in my car, as well as their vehicles.

  • By Nthabi March 14, 2012 - 10:08 am

    My husband got an accident a year back, 4 cars incolved + Truck. Truck driver was on the phone & hubby was behind him – truck suddenly break…hubby was supposed to go under the truck but sweaved and crashed into other 3 cars. Truck driver left as if nothing happened. Hubby not insured…All 3 cars were insured except hubby’s….now they are all claiming against hubby…Total costs is about R200K….we don’t have money for all that – already struggling to pay. Their insurance companies were (Miway, Santam, Federal & Mutual) Miway is even charging us about 80% interest if we don’t pay lumsam….can anyone assist please

  • By Tso March 15, 2012 - 10:24 pm

    My wife was involved in an accident with Miway client. My wife indicated well in advance that she intended to turn left into the yard. Just when she was turning into the yard; this guy came from behind and when he was about to rear end her; he decided to overtake her on the left; thereby scratching the left side of our car. He overtook on the left where the was no road but the pavement. When asked; he says he was trying to avoid rear-ending my wife hence he overtook on the left.

    The police came and did all they were supposed to do.

    Will Miway take third party liability? The requested us to send them some documents including the quotations.

  • By tman April 5, 2012 - 10:29 am

    does SA statutory alter common law on payment of insurance premium?

  • By Cyril May 18, 2012 - 4:45 pm

    Had an accident where someone failed to brake (or brakes failed) and slammed into my car. What is the proceedure to claim from this individual or her insurance?

  • By rajeev May 23, 2012 - 4:16 pm

    Hi – My dads vehicle was involved in an accident with a municipality truck – The insurance for ethekweni have advised that the vehicle is a write off as the cost to repair is more than the book value of the vehicle. My dads vehicle is not insured – Can they write the vehicle off or can we push for them to have the vehicle repaired at their cost? Please advise!

  • By Matthews Bantsijang June 1, 2012 - 3:40 pm

    Hijack stories are difficult.

  • By Phale June 5, 2012 - 4:18 pm

    EMBO RISK SOLUTIONS we assist the Insureds when thier claims are rejected by Insurance companies we also do Motor Damage Assessments to determine the cost of damages to vehicles Google us we can offer assistance

  • By Jaco June 5, 2012 - 9:57 pm

    Hi I urgently need help.My car was written off in a accident.My insurance launched a investigation into this matter witch I had no problem with,the investigator called me today saying everything checked out perfect but they are thinking of declining my claim due to the following reason….when I took out my policy the call centre agent asked me to declare any claims I had in the last 3years I then declared the one case to my knowledge that I had on my name,the problem they found is I was the driver of my girlfriends car about 2 and a half years ago when a drunk driver drove into us,I completely forgot about this due to the fact that I did not claim my girlfriend at that time now my wife claimed under her insurance, please help me because I don’t know where to go I really think this is very wrong of my insurance company wanting to get out and leave me in a mountain of debt

  • By Phale June 8, 2012 - 3:02 pm

    Hi Jaco

    Request the Proposal tapes, read the policy shcedule and wording this might give you ways by wich to negotiate with your Insurer. We assist the Insureds with staff like that Google EMBO RISK SOLUTIONS

  • By Ben June 16, 2012 - 3:20 pm

    I have a comprehensive insurance policy on my vehicle. The car was recently damaged by a rodent eating the wiring. The telephone-based insurer says that they do not cover rodent damage and pointed out another ‘facility’ document which they had never sent me. There is reference to it in their fine print. They are being deliberately misleading. Their emailed document is called “Personal Facility” but appears to be a “schedule” document and refers to a “Facility” document, not included. How does the Consumer Protection Act help me? This company has corrupted the legal definition of the word ‘comprehensive’ so I should be protected even without the CPA.

  • By TR Tlang June 19, 2012 - 5:11 pm

    Hello

    I had a car accident in June of 2011 the car I was driving has no insurance, I was found unfairly guilty, The Judge stated that the case was well defended by myself as the Accused and that based on the testimonies given by the Complainant,and his witnesses and myself and my witnesses, she does not know what decision to take but to rely on a picture that was submitted by the Complainant and not on the facts that were put before her. In taking that baseless decision I have no doubt that she was biased. Also bearing in mind that we both had an equal number of witnesses. The hearings were recorded so I do believe that all the tapes are available for verification.

    Furthermore, my witness also submitted a picture before her of which it was never considered. The picture that she used to base her decision does not clearly show the point of impact, it only shows the rear wheel of the complainant’s vehicle and not where the vehicles had the first contact. Please note that I was found guilty for not stopping on the STOP sign of which the Court could not prove. The STOP sign at which the incident occurred was erected too inside and every reasonable motorist has to proceed further to acquire a better look. The Judge was taken to the scene of the incident during an in loco inspection and she also confirmed and agreed that the STOP sign was indeed placed too inside and one had to actually drive a bit further to obtain a better view. I definitely stopped at the STOP sign as I have used that particular road for over 8 years and I am well familiar with the road and my witnesses did attest to that in the Court of Law.

    The road at which the incident occurred is an extremely busy road especially during peak hours. The root cause of the incident is that the Complainant lost control of his vehicle and was driving at a high speed and the immediate cause is that he collided on to left front side of my vehicle while I was standstill. Again the issue of the speed was never entertained by the Judge.

    The place where incident occurred has since been upgraded into a four-way stop. The stop sign that was placed too inside has been adjusted and pulled close to road. The speed on that section of the road has been reduced to 30km/h as per the newly erected speed restriction boards If there was nothing wrong with construction of the road then why all the amendments? You can only amend something that is not correctly done. So in the nutshell I am being punished with a criminal record for something that our Government and the Municipality failed to notice and rectify and also the complainant Insurance Attorney’s sent me a letter saying we are proceeding with summons against me.Please what do I do? Thanks.

  • By Francois Marais June 21, 2012 - 10:38 am

    Greetings. My vehicle was rear-ended by a truck. I have no insurance but the company that owns the truck does have insurance. I put in my claim. Lowest repair quote R47k, retail value of vehicle R41K. The insurance company (after more than a month) state and I quote: “The amount being offered has been calculated as follows:
    100% as per Market value (R38500.00) – (less) 20% salvage R7700.00 = R30800.00″
    On making my objection/enquiry and I quote: “I am sorry but this is not acceptable.
    The retail value of my vehicle is over R41,000.
    I am the victim and I will not be victimised further.
    Either pay the repair – least quote of R47,000 or pay me the retail value of my car.”
    The response I got was, and I quote:
    “We refer to the above matter.
    Kindly take note that it is common practise by any insurer, that we settle on the Market Value and deduct the salvage percentage, as you retain the wreck.
    Our offer will not be amended, as it is both fair and reasonable, and will stand in a court of law.”
    My question: Is their response accurate and I have no recourse – or am I being victimised again?

    Kind regards
    Francois Marais

  • By Tokollo Modise June 22, 2012 - 10:22 am

    I was involved in an accident on the 3rd of April 2012, and the licence disk of the other car had expired, metro police even issued a ticket for the other driver. However, no car was damaged.I now received a letter from the other drivers lawyer/insurance saying the damage cost R10 467.98. I told the lady the story and that the other driver’s car was not roadworthy and she mentioned that i need to prove it. How do I prove it, is the anywhere in SA that i can get help or do i also need to inform the legal people about the situation. Whats the easiest way out? I dont even have cash to the pay the lawyers.

  • By Hazel July 30, 2012 - 2:23 pm

    Hi,
    I want to purchase a vehicle from a friend that is still under finance. We have an agreement whereby I pay the first 2 installments and then settle the amount with one payment. In the meantime can i get insurance for this vehicle before i am the legal owner.

  • By admin July 30, 2012 - 5:55 pm

    Your insurance company may want to establish that you have an insurable interest in the property. The following excerpt is from an FAQ on the MiWay web site … I.e. You must stand to suffer a direct financial loss if there is a claim. An insurance company might not wish to cover your asset if you are not directly responsible for it.

  • By zaahied August 12, 2012 - 8:38 am

    I had an accident 13 July 2012 , not my fault. What is the industry standard percentage for salvage after a write off (20-25%) or is it just open to what the negotiator feels.
    if write of is nothing over 70% of MRV, then I’m sure salvage/wreckage fee should regulated too.
    PS :I got deducted 35% from M&F

  • By Mansell Matthew August 14, 2012 - 11:34 am

    My insurer has taken 38 days after the date of my claim to approve repairs on my car. It has now been over 8 weeks and i still do not have my car. Is this fair? Who is responsible for the costs I had to bear (car installments, alternative transport etc.) during this long period? I do not have a car hire option on my policy.

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