Liability Insurance Coverage
South African law is divided into criminal and civil law. Civil law has to do with the protection of an individual’s rights. The two most common causes of action are contractual and delictual (through negligence.) Delictual liability refers to damages suffered by a person as result of the wrongful actions or omissions of another. Liability insurance policies usually only provide cover for delictual liabilities.
Liability insurance provides cover against legal financial responsibilities to a third party resulting from property damage or bodily injuries/death. This cover protects against civil claims resulting from the consequences of the actions or neglect on the part of the insured person. It also covers the related legal costs.
There are different types of liability insurance such as public liability, motor third party liability and professional liability cover taken out by professionals such as doctors. In South Africa we currently still have the cover of Third Party Insurance that is included in a fuel levy paid by all motorists. This does not cover the property damage to the third party’s car. You should therefore ensure that you include this cover in your car insurance to prevent crippling financial claims against you.
Most car insurance policies will stipulate limits of liability – this refers to the maximum amount that an insurer will pay for any specific accident.