Insurance shock

2003-04-22 07:15

Rajaa Azzakani and Sapa

Johannesburg - Insurance companies have warned claims submitted by drivers with unlawfully acquired licences could be declared invalid.

That's according to Caroline da Silva of the SA Insurance Association. She was reacting to reports that thousands of motorists who had used agents to apply for licences could find they did not possess valid documents.

If proof existed a licence had been issued unlawfully, a claim could be rejected, she said.

When the validity of a licence was in dispute the onus rested on the driver to convince insurers everything possible was done to ensure its validity, da Silva added.

She said the industry would accept the validity of all credit card licences on face value, but if a claim is in dispute an insurer could insist the holder of a company policy must prove an employee's licence was valid.

Validity established 'within 24 hrs'

Ina van der Merwe, CEO of MIE Resource Services - South Africa's oldest and largest company specialising in checking particulars - said the validity of a licence could be established in under 24 hours.

"If you consider the costs of writing off an expensive vehicle in an accident and covering the damage to the other vehicle, it is foolish not to test the validity of an employee's licence," she said.

This could be done for under R80.

Automobile Association spokesperson Gary Ronald said it was entirely acceptable for insurers to reject such claims.

When drivers applied for new licences their ID licence was immediately cancelled. If the new licence was issued unlawfully the driver no longer possessed a valid licence.

Meanwhile, Gauteng transport MEC Kabisi Mosunkutu called on drivers who had not applied to switch to the new licence at municipal or licensing offices to seek help at these venues as soon as possible because time was running out.

The cut-off date is the end of this month.

Drivers should bring any information on the agents they'd used so these could be dealt with, he added.

- Beeld