A definition of damage (verb) is to cause injury or destruction. You will therefore suffer damage if your car is destroyed in an accident and you may also have suffered injuries in the process. In insurance either a loss or damage must be experienced before a claim can be made against an insurance policy.

Damages (noun) refer to the amount of money claimed for compensation for injury or loss. Damages do not only refer to the amount claimed but also when it has been confirmed for payment, i.e. “The court has awarded damages to the amount or R100 000 to the claimant.” Damages in insurance terms are financial compensation due for loss, damage or injury suffered through an insured event.

In a car insurance policy events that are insured will be listed under the sub-section Loss or Damage. It will include items such as:

• If the car is disabled though damage the insurer will pay for towing the car to the nearest approved repairers;
• Pay for car hire for the insured for a specified period while the car is being repaired;
• Will deliver the car to the insured after its been repaired and
• The insurer will indemnify the third party on behalf of the insured for damages suffered.

Please note that this is not an exhaustive list of everything listed in a general car insurance policy. Always check the details on your policy as well as the conditions and exceptions that are applicable.