Peril
The words risk, peril and hazard are often used in short term insurance, sometimes indicating that they have an identical meaning. This is not so. A peril refers to the actual source (or cause) of a loss. Examples of perils that could be involved in car insurance are: fire, explosion, storm, hail, collision, theft.
Perils must be insurable and in a car insurance policy it will clearly state which perils you are insured against. Insurable perils will always be fortuitous and not planned. For example a fire can be started by lightning but arson is a deliberate act and therefore not insurable. Insurance policies will also state the perils that are not covered by the policy – these are called excepted perils. You will mostly find a long list of excepted perils listed in your policy document; this is done to prevent any confusion and ambiguity. Examples of excepted perils in most car insurance contracts are wars, riots, political acts, public disorder and terrorism. In car insurance it is important to note that depreciation, wear and tear, rust and mechanical or electrical breakdown are all excepted perils. These perils are also referred to as uninsurable perils.
Perils such as war and political acts are covered under SASRIA, this cover is normally added to any car insurance policy and a small contribution is paid with your insurance premium monthly.