Guiding consumers since 2009

Suspended drivers could face insurance claim rejections

By Staff Writer

Drivers that have had their licences suspended under the Road Traffic Management Corporation’s (RTMC) precautionary safety programme could face having their insurance claim rejected should they be involved in an accident. “Motor insurance cover is immediately invalidated when the driver no longer has a valid driver’s licence. Should the motorist be caught driving with a suspended driver’s licence, not only are they partaking in a criminal offence, but they are placing themselves at risk of further financial strain, in addition to the costs associated with re-testing for both their learners and driving licences,” warned Christelle Fourie, managing director of specialist insurer MUA Insurance Acceptances.
 

Under the RTMC’s ‘Woza Re-Test’ programme, drivers could have their licences suspended if they are convicted of traffic offences such as driving under the influence of alcohol or other narcotic substances, reckless, negligent or inconsiderate driving and excessive speeding. According to the RTMC around 5 000 drivers have been arrested for various traffic violations since 1 January 2012.
 

Fourie added that drivers must also be aware of the additional insurance repercussions following the end the suspension. “Offenders are likely to struggle to find an insurer who will take on the risk of insuring them if their driver’s licence has been suspended in the past, as their risk profile will be worse than ordinary consumers. Those who are fortunate enough to find an insurance provider will most likely suffer the consequences of higher than average premiums or excess due to the increased insurance risk they present.”
 

The RTMC’s proposed changes follow the introduction of the Administrative Adjudication of Road Traffic Offences (AARTO) and a greater police presence on the roads to catch drunk and reckless drivers.
 

“While it may take some time for South Africans to get used to these changes, they are ultimately a positive step in combating what is a very serious problem. It is actually quite simple - motorists must learn to obey the laws of the land when they drive to avoid financial and legal repercussions,” added Fourie. 

Recent Articles

Featured Ensure your family doesn’t feel the impact of your retrenchment

Retrenchment doesn’t only change the way you view yourself; it also alters the relationship between you and your family. Things can go from good to bad within a short space of time. But you can do something to prevent your family from feeling the impact of retrenchment.

Someone got injured on my property – now what?

Life is unpredictable and no matter how careful we are, accidents happen. But what if someone has an accident while visiting your house? Your guest could fall off the stairs, slip on the floor or get bitten by your dog. 

Are you ready for a house upgrade?

You moved into your home knowing one day you would need to make some changes to turn it into your dream home - add a new bedroom, a second bathroom, build a double storey or even move out.

How income protection can help you when you’re sick

Your greatest asset is probably your ability to earn an income, which provides a certain lifestyle and the capacity to take care of your dependants. That’s why it’s so important to protect your income against unforeseen illness or injury and to provide for your dependents after your death.

Deals

Baby Boom Toy Specials

Price: Available on request
When: Daily
Where: Online

Readers’ Warehouse Book Bundle Deals

Price: From R40
When: While stocks last
Where: Online

Bidorbuy Crazy Wednesdays

Price: From R1
When: Daily
Where: Online


Latest Guide

Complete guide on personal income tax