Check your insurance policy!

2008-08-07 11:20

Johannesburg - Many claims arising out of the theft of motor vehicles were rejected by insurers on the grounds that the vehicle did not comply with the required security measures stipulated by the policy, the Ombudsman for Short-Term Insurance, Brian Martin said on Thursday.

A significant amount of complaints stemming from these situations were then lodged with the Ombudsman.

"It is thus imperative that consumers acquaint themselves with the specific requirements for theft and hijack cover as laid down by their insurers," Martin said.

To reduce the risk of theft of motor vehicles, insurers frequently insisted upon the installation of a car alarm, immobiliser or tracking device.

The insurer might also insist that these devices comply with certain standards or specifications for cover to be effective.

Should these devices fail through defects or poor installation the likelihood of a vehicle being stolen or permanently lost would be increased.

Security, tracking devices

"Where cover is conditional upon the fitment of specified security or tracking devices the onus is on the insured to ensure that the stipulated devices are fitted within the designated time period and to ensure that they are familiar with the operation of any installed security measures", Martin said.

Where insurance cover was purchased from a direct marketer of insurance products, certain information had to be furnished to a prospective policy holder prior to entering into a policy.

This included a general explanation of the principles of the relevant contract and any information that would reasonably be expected to enable a prospective policy holder to make an informed decision, Martin said.

Any particular requirements or restrictions relating to theft cover should accordingly be properly discussed and drawn to the attention of a prospective policy holder by the insurer, but the onus remained on the policy holder to ensure that there was compliance with the requirements and conditions stipulated by the insurer for cover.

- SAPA