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Motor Insurance
Friday, December 1, 2006
Double trouble

Drivers and passengers who respond to the calls by the Department of Transport and some local authorities not to drive to work with just one person in the car could face serious consequences, says Arnold van der Linde, Chief Executive Officer of the IntegriSure Group.

He says the public is too easily being blindly urged to form lift clubs, without also being warned about the possible consequences if things were to go wrong.
Mr Van der Linde says that standard personal motor insurance policies state that ordinary car owners’ cover does not apply if you transport passengers for payment. So if you receive money for the trip, you have no cover – neither for your car nor for damage to someone else’s car. There is also no passengers’ liability cover. In the event of an accident, this could mean that the driver of the vehicle will have to pay for all the damage plus the passengers’ claims. Such claims could amount to millions of rands.
He says that all efforts to improve the country’s traffic situation deserve the greatest praise. The solution is that people planning to form lift clubs must contact their brokers to obtain the correct advice for each individual case. There are in fact tailor-made insurance products available for this purpose.
He is concerned that the public has not been fully informed by the authorities and that this could result in the insurance industry being given the blame if one does not have cover.

Copyright © Insurance Times and Investments® Vol:19.6 1st December, 2006
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