Higher Road Costs Trigger Insurance Warning

MIB Insurance issues warnings due to higher road costs Drivers urged to check their insurance policies to make sure that they are fully covered.

Glenrand MIB Insurance has issued a warning to South African drivers ahead of rising costs on the country's roads.

It is assumed that as petrol prices rise and toll roads open around the Gauteng region, more and more drivers will be looking for ways to cut down on costs.

One way to do so would be by joining car pools, and herein lies the problem.

"The key risk aspect in this scenario is whether the driver of a vehicle in such as club is driving for reward, ie. charging passengers and we urge the motoring public to exercise caution, as in this case, passenger liability cover may be excluded under their personal motor insurance policies," warned the Manager of Marketing and Sales at Glenrand MIB, Mandy Barrett.

Barrett said that, if this was the case, the driver would need to register under Chapter 6 of the Road Traffic Act as a taxi driver.

The driver would be subject to all the rules and regulations of that legislation, including holding a professional driving license and with commercial passenger liability cover in place.

Barrett warned: "As the driver in a life scenario without such cover in place, you could be open to crippling claims if your passengers were to be injured due to your negligence. It's all to do with the purpose of providing the transportation and if that purpose is for profit, even indirectly."

Barrett said a scenario could see half a dozen people injured in an accident while being transported, and the driver faced with multiple claims running into millions of Rands for anything from pain and suffering to loss of future earnings.

If in doubt, drivers are advised to contact their insurance companies for answers.