Unforeseen insurance issues often stem from a lack of clarity regarding your vehicle insurance policy’s requirements and limits.

A recent legal ruling underscored the importance of comprehending your car insurance policy stipulations.

In January, the Pretoria High Court made a decision that serves as a stark reminder of how motorists failing to adhere to policy terms, such as ensuring a functional tracking device is installed, can lead to rejected claims and substantial out-of-pocket costs.

Juan Hanekom, the national director of the South African Motor Body Repairers’ Association (Sambra), affiliated with the Retail Motor Industry Organisation (RMI), highlights a common oversight. “While many car owners focus on selecting the right repair garage post-accident, they often neglect the intricacies of their insurance cover. Being involved in an accident or suffering vehicle theft is stressful enough. The last thing you want is a rejected insurance claim due to a technicality,” he warns.

In this case, an insurer denied a claim because the stolen vehicle lacked an operational tracking device – a specific policy requirement. Despite the policyholder’s claim of installation, they couldn’t provide adequate proof. The court upheld the insurer’s decision, reinforcing the principle that policyholders are responsible for ensuring compliance with all policy conditions.

Hanekom emphasises that similar risks exist with vehicle repairs. “If you fail to use an approved repairer, you might not only receive substandard repairs but also risk your insurer refusing to cover costs due to non-compliance with their approved garage network requirements.”

To prevent costly surprises, Sambra recommends the following for motorists:

• Understand your policy terms: Thoroughly familiarise yourself with requirements regarding tracking devices, approved repairer networks and claims procedures. Be wary of low premiums that often come with a high excess in the event of a replacement or repair.

• Choose approved repairers: Always use an approved motor body repairer to ensure quality workmanship and adherence to insurance stipulations.

• Maintain detailed records: Keep proof of compliance with your policy, including tracker installation certificates and repair invoices.

• Clarify policy changes: Regularly review your policy and confirm any updates with your insurer.

“Motorists must be proactive,” Hanekom says. “Just as you wouldn’t entrust your vehicle to an unqualified mechanic, you shouldn’t assume your insurance will pay out if you haven’t met the necessary conditions. Stay informed, choose approved service providers and maintain meticulous records to safeguard your investment.”

Source: Cathy Findley PR