The insurance contract between a client and the insurance company is based on full disclosure. As a client, you have to disclose all the risks and enable to the insurance company to make an accurate assessment of those risks and then calculate the premium payable!
We all use our vehicles for different purposes and are exposed to different risks. A friend of mine who was a property developer was told by his broker that he needs to disclose that his bakkie will be used in construction to which he replied – “But I go to church in that bakkie as well!” Even though it may be funny, it is also true that the bakkie which is used for work and used on the construction site and transporting both workers or construction materials, may well be exposed to more risk than when used as a normal passenger vehicle.
On the Car Insurance glossary, we find the following description:
When acquiring car insurance it is important you have the right use for your car. If you have the wrong use, you may find your insurance company will not pay out on a claim. What you use your car for will have a substantial effect on your insurance premium.
The different categories of vehicle use are:
- Social, domestic & pleasure
You are covered for day to day driving or riding, such as a visiting family, friends or going shopping but not to drive to work. This covers drivers for normal day-to-day driving, such as driving to visit family and friends or shopping. - Commuting
Covers drivers to drive back and forth to a permanent place of work. Travelling to a railway station, where the car is parked, is classed as commuting. - Business use
You can use your vehicle in connection with your job, such as driving or riding to more than one place of work. Covers the car in connection with your job, such as driving to different sites away from your place of work. Also using your vehicle as a construction vehicle or for work on the farm. - Commercial travelling
You can use your vehicle for things like door-to-door sales. This vehicle could also be used for e-hailing services such as Uber, Taxify, InDriver etc
The best is always – when in Doubt – Rather disclose than risk withholding any information that your insurer may later challenge as being a non-disclosure and reason to reject your Insurance claim!
[A word of Appreciation to Rentia Benade from Salvo Capital]