Gari Dombo, Managing Director, Alexander Forbes
Lending your vehicle to visitors or friends or making a quick buck driving tourists to soccer matches and fan parks during the 2010 FIFA World Cup could see you without cover for damage, injury or death.
In short, the ramifications of what might seem like an innocent and even generous gesture has the potential to be very costly if the right cover is not in place. For example,” if a foreign visitor without a valid South African or international license drives your car and crashes into another vehicle you will have to pay for your own damage and may also be liable to pay for the other parties’ damage and injury” says Gari Dombo, Managing Director, Alexander Forbes Insurance.
It is important to “check whether your motor policy is restricted to nominated drivers, or if it covers all drivers as, depending on the wording of your policy, your insurer may not pay out in the event of mishap” warns Dombo.
As such, people hosting guests for the 2010 FIFA World Cup should inform their insurers how they plan to use their vehicles during this time.
While some people might consider quietly lending a vehicle to a tourist or a mate from overseas for the odd match, it should be remembered that some foreign licenses are not valid in South Africa and their holders are therefore not licensed to drive while travelling in South Africa. At the moment “South African authorities accept a drivers’ license that is current in the country of its origin and valid for the driving of the same type of vehicle that is to be driven in South Africa - as long as the license is written in English and bears the driver’s photograph” says Dombo.
If an unlicensed driver causes damage, injury or even fatality you may end up in court for allowing your overseas guest or friend to use your vehicle. “And if you are unable to pay the damages you may have your assets attached to settle liabilities” warns Dombo.
As such, Dombo advises people to consider the following when lending vehicles to tourists or friends during the world cup:
- Is the tourist a licensed driver?
- Is the license acceptable in South Africa?
- Are they familiar with the rules and regulations of our roads e.g. driving on the left hand side?
- What is the risk profile of the driver (age, experience etc?)
- How many people will be driving the car? The more people you nominate as drivers, the more you will pay on your insurance premium.
- Do you know the history and driving competence of the person you are lending your vehicle to. It’s always better if they have been referred by somebody you trust and you have done a security test.
- Are you covered for third party liability in the event that someone else who is driving your car causes damage to property or even death?
Furthermore, all personal motor policies exclude carrying of fare paying passengers or carrying of passengers for reward. So, if you are thinking of charging foreign guests (or taking any kind of reward) for drop-off services you must check whether your insurer covers this since “you will most likely need a PDP drivers license to do this legally” adds Dombo.
While informing your insurer of your full intentions concerning the use of your vehicles during the 2010 FIFA World Cup may see your terms change, or see you take on additional excess for the period, this is comparatively cheap “compared with what you will pay if you are found liable for damage, injury or death due to the behavior or driving status of the foreign guest that you lent your vehicle to - or those tourists that you injured while driving them to a match for reward” cautions Dombo.
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