Drunk drivers can have their insurance claims rejected
Ombudsman for Short-Term Insurance warns consumers to be aware.
The Ombudsman for Short-Term Insurance has warned insured motorists to beware the consequences of driving while under the influence of alcohol or drugs.
The Ombudsman, Deanne Wood, said most insurers would repudiate claims from an insured who had an accident while under the influence.
She said she found that most motorists who drove under the influence of drugs and alcohol considered being stopped by the police as the greatest threat so they took back roads to avoid being stopped.
“They fail to consider the devastating financial effect driving under the influence may have on a payout by their insurer, should they be involved in an accident,” she said. “This is because the majority of insurance policies exclude cover for any loss or damage suffered in an accident which occurred while the insured driver was under the influence of alcohol or drugs.”
She warned that in civil matters such as insurance claims, the burden of proof was lower than in criminal cases where the state was required to demonstrate “beyond a reasonable doubt” that the motorist was under the influence.
“[To repudiate a claim] the insurer need only show that the insured was, on a balance of probabilities, driving under the influence,” she said.
Claims may also be rejected where an insured provides an insurer with incorrect or dishonest information regarding the circumstances leading up to and surrounding an accident, she warned.
The ombud also found reason for rejecting a claim was the failure by the driver to remain at the scene of the accident as compelled by law.
The National Road Traffic Act requires a driver involved in an accident where a person or animal is killed or injured or any property is damaged to remain at the scene.
The exclusions outlined above mean that the insured will be responsible for own repair costs but may have to carry the costs of the third party.
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