Don’t expect your insurance to pay when this happens
The Ombud for Short-term Insurance has seen a 48 per cent increase in complaints since 2017 for claim rejections
The implications of driving under the influence of alcohol, without a valid driver’s licence or reckless driving can be profound – all can lead to an outright rejection of your insurance claim if there is an accident and damage or loss of property.
The Ombud for Short-term Insurance has seen a 48 per cent increase in complaints since 2017 for claim rejections where policy holders have not exercised due care to prevent a loss. Many of these relate to driving under the influence, reckless driving and excessive speeding.
Explains Mandy Barrett of insurance brokerage and risk advisors, Aon South Africa: “The reality is that insurers are there to pay valid claims due to sudden and unforeseen circumstances – any scenario where there is proven recklessness could see your claim rejected for failing to take due care to prevent loss.
“Insurers are able to back up such claim rejections with technology such as vehicle telematics reports which show the speed of the vehicle just before impact, accident reconstruction experts and eye-witness reports if they believe the cause of the claim is related to illegal or reckless behaviour.
“Getting behind the wheel of a car when you are over the legal alcohol limit, under the influence of narcotics, talking on your phone while driving without a car kit or driving at excessive speeds would see insurers well within their rights to reject claims on this basis if proven,” she said.
“The financial implications are huge – not only will you face the costs of own damage if the claim is rejected due to reckless driving, but you will also be responsible for the costs of any third-party damage.
“Even more concerning is the fact that if there is a personal liability claim by a third party involved in an accident with you, you may become legally liable to pay for financial loss, physical injury, disability or death of a third party.
“The personal legal liability cover typically embedded in your personal motor insurance policy will not respond if your claim is rejected, and you’ll be left to fund any legal defence costs and claims awards from your own pocket,” warns Barrett.
A professional broker can add value in the advice process and guide you towards a thorough understanding of the terms and conditions of your cover and your responsibilities as part of a two-way contract with your insurer.
