Balance of Third Party
The Road Accident Fund Act of 1996 makes provision for claims in the event of death or bodily injuries to third parties resulting from road accidents. Every motorist contributes to the fund as a levy is paid on fuel in South Africa to provide for the fund.
No damage to the property of the third party can be claimed from the Road Accident Fund. The implication is that if you are the guilty party in an accident you will be liable for damage not covered by the road accident fund.
Balance of Third Party insurance is the name used in South Africa for this type of car insurance and will cover:
- Any claims for injury to passengers that is not covered in terms of the Road Accident Act of 1996.
- Claims for damage to the property of the third parties.
This insurance can be bought at insurance companies. The term “balance” is seldom used anymore and third party insurance is exactly the same thing as balance of third party insurance. Third party insurance will only pay for damage to the third party’s car, and the driver who caused the accident will be responsible for his own damage.
Third party, fire and theft policies will cover the perils of theft and fire for the insured’s car as well. Only comprehensive insurance includes cover for the damage to the insured’s car. Although not compulsory, no driver should be without the minimum car insurance cover namely balance of third party.