Here’s my gift-giving rule: Respect your current financial situation.
– Suze Orman
Motor vehicle insurance generally refers to insurance in terms of which an insurer assume the risk of loss that the insured might incur in relation to his motor vehicle or third parties. In return the insured pays a premium. Motor vehicle insurance cover can be very limited or very broad depending on the type of risk covered.
Motor vehicle insurance claims have of late become prevalent. Consumers are advised to ensure that they thoroughly understand the insurance terms.
One of the main issues that the consumers seem to face at the claim stage, emanates from the fact that the person who was driving the vehicle at the time of the accident is not the owner
of the vehicle. What is important to know in this respect is the fact that a person driving a vehicle irrespective of whether such person is the owner of the vehicle or not, is bound by the terms applicable to the insured. The only exception is when the driver was not authorized to drive the vehicle.
For example an insurer may be entitled to repudiate a claim if:
• The person found to drive the vehicle was driving while exceeding the legal limit of the alcohol level although such person is not the owner of the vehicle or
• The person who was driving the vehicle makes a false statement in relation to the accident.
Motor vehicle insurance generally refers to insurance in terms of which an insurer assume the risk of loss that the insured might incur in relation to his motor vehicle or third parties. In return the insured pays a premium. Motor vehicle insurance cover can be very limited or very broad depending on the type of risk covered.
Motor vehicle insurance claims have of late become prevalent. Consumers are advised to ensure that they thoroughly understand the insurance terms.
One of the main issues that the consumers seem to face at the claim stage, emanates from the fact that the person who was driving the vehicle at the time of the accident is not the owner
of the vehicle. What is important to know in this respect is the fact that a person driving a vehicle irrespective of whether such person is the owner of the vehicle or not, is bound by the terms applicable to the insured. The only exception is when the driver was not authorized to drive the vehicle.
For example an insurer may be entitled to repudiate a claim if:
• The person found to drive the vehicle was driving while exceeding the legal limit of the alcohol level although such person is not the owner of the vehicle or
• The person who was driving the vehicle makes a false statement in relation to the accident.