Matriculants warned of motor insurance risks during holidays

Christelle Fourie, Managing Director of MUA Insurance Acceptances.

It is not uncommon for matriculants to celebrate the end of their schooling years and final exams by going on a holiday with friends, commonly known as Matric Rage. Caution needs to be taken during this time, however, as the sharing of driving responsibilities or any drinking and driving can have a massive impact on any insurance claims resulting from an accident.

This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says that matriculants often use their parent's car, or their own, and share the driving responsibilities amongst the group of friends on the trip. "In doing so, and without informing their insurance broker, the decisions to share the driving responsibilities could result in insurance claim repudiations."

She points out that it is not that uncommon that parents either give their children a car as a graduation present, or let them use theirs to go on a holiday. "Before they do this, however, it is critical that parents educate their children about the various insurance and safety implications of driving a vehicle."

Fourie adds that it is important that policyholders add any additional drivers to the insurance policy, especially those who may share the responsibilities of driving while on the trip.

"Policyholders often make the mistake of allowing other people drive their vehicles, who are not included in their policy or may not have a valid driver's license. Without informing their insurance company or insurance broker, this could put them at risk of an additional excess or claim repudiation in the event of an incident."

She adds that another important point for anyone going on holiday is that overloading above the passenger carrying capacity of the vehicle is a standard policy exclusion and would also most likely result in a claim being rejected.

Fourie says that drinking and driving is a massive problem in South Africa, which could lead to an abrupt and potentially disastrous end to a holiday.

"This is a time when drivers need to be extra cautious on the roads.

According to the Road Traffic Management Corporation, more than 1370 people died in car accidents over the 2013/2014 festive season alone."

She explains that it is really important that policyholders are aware of the fact that if they drive or operate their vehicle after consuming alcohol, their insurance will no longer be valid. "This means that if you drive drunk and are involved in an accident, you will not only have to face the legal ramifications of the law, but you will also be potentially liable for any damage that has been caused to your vehicle, as well as to anyone else's too."

The introduction of driver assist programmes and mobile apps, such as Uber, have helped reduce drunk driving incidents that contribute to these statistics. Fourie says that anyone who is not able to drive home should rather make use of one of these services instead. "The cost of a taxi service is marginal when compared to the potential damage to a vehicle, or worse, the loss of life caused by a drunk driving accident."

"For anyone, especially matriculants, who may be planning a trip over the holiday period it is important that they understand the various insurance risks and implications for negligent driving behaviour. Failing to do so could result in tremendous financial strain, as a result of claims being repudiated," concludes Fourie.