South African car insurers are rejecting these claims

Experts warned that South Africans’ failure to maintain their vehicles could result in their short-term insurance claims being rejected, leaving them to foot the bill after an accident.

Many consumers forget that all general insurance policies carry a wear and tear and gradual deterioration exclusion, as well as exclusions on mechanical and electrical breakdown.

This requires policyholders to take reasonable steps to prevent damage and keep their property in safe, working order.

When it comes to vehicles, this means ignoring a repair centre’s advice to replace worn brakes, bald tyres below a certain tread, faulty suspension, or broken lights could have serious consequences.

Dewald Ranft, Chairman of the Motor Industry Workshop Association (MIWA), said motorists need to be aware that an assessor will look at whether poor maintenance contributed to an accident before approving a claim.

“If an accident is caused, or made worse, because a vehicle was not maintained in a roadworthy condition, the insurer can decline the claim,” Ranft said.

“For example, if worn brakes prevent you from stopping in time, or bald tyres cause you to lose control in the rain, the insurer is within their rights to reject the claim.”

According to the National Financial Ombud, wear and tear, gradual deterioration, and a lack of maintenance are some of the leading reasons insurance claims are declined in South Africa.

While this is often discussed in relation to buildings and property, the same principle applies to vehicles. The South African Insurance Association (SAIA) agreed.

They said that while having vehicle insurance can give peace of mind at the time of the loss, it remains the vehicle owner’s responsibility to ensure it is running efficiently and safely.

The association explained that consumers should inspect their vehicles regularly and pay attention to vehicle warning signs.

A growing problem

SAIA General Manager of Governance and Transformation Themba Palagangwe explained that it is becoming increasingly important for car owners to do proper checks.

“With the increase in climate-related events such as storms, hail and floods in the recent months, it is even more important for vehicle owners to be extra vigilant regarding the repairs and maintenance that their vehicles need,” he said.

This is essential to increase road safety and the chances of their insurance claims being paid in the event of an accident.

Earlier this year, King Price Insurance client experience partner Wynand van Vuuren also warned that the country’s most common natural disasters – floods, droughts, fires, and large storms – are on the rise.

In addition, lightning strikes, hail damage, windstorms, and sea level rises occur more often. The result is that consumers who do not have car insurance are more vulnerable than ever.

“The cost of fixing the damage caused by natural disasters is increasing every year, and South Africans who do not have adequate insurance are having to pay these costs out of their own pockets,” Van Vuuren said.

This is particularly worrying considering that only around 30% to 40% of the cars on South African roads are insured. Having to fix damage caused by a natural disaster can be a devastating blow to consumers’ finances.

Ranft advised motorists to:

• Service their vehicles regularly and keep a record of work done
• Act immediately on safety-related advice from a trusted repair centre
• Ensure tyres, brakes, suspension, and lights meet safety standards

“Maintaining your vehicle is not only essential for your safety and that of other road users – it is also a vital part of protecting your insurance cover,” Ranft added. “A small, timely repair could save you from a massive financial loss.”