Beware private transport insurance risks

Clint Harker

Local entrepreneurs planning to provide such transport could find themselves personally liable for accidents and damages, potentially leaving them in financial ruin, if they do not check exclusions in their insurance policies.

Conventional personal policies normally exclude any fare paying passenger. Even if you have a commercial policy, it may not cover you from liability for accidents while transporting guests. This includes guesthouse and backpacker owners who offer airport transfer as part of their service. In this case, a commercial policy may provide cover, but it is always a good idea to check with your broker beforehand.

If an international client sues and claims in Euros or Dollars, liability limits under personal policies may not be enough cover. Some policies have limits of R3 million which is definitely not enough to cover an international claim.

In a recent case, where an international passenger was paralysed after a motor claim involving a South African citizen, the claim was in excess of R70 million. If this claim was not covered by the South African's insurance policy, the client could have been held personally liable for the damages.

There are also specific license requirements that must be complied with in order for a policy to pay out. Anyone transferring passengers for reward is required to have a Public Driving permit. Claimants found not to be in possession of this requirement are likely to have their claims repudiated.

Anyone contemplating transferring guests during the tournament should consult with his or her insurance broker and, importantly, disclose all information. Tell your broker if you are planning to transport guests so that they can ensure that you meet all the requirements, as well as consult with you on the best available cover to protect your interests.