Expired drivers license and insurance claims

The woes of insurance cover normally begin when a policyholder must lodge an insurance claim in the wake of misfortune. This is a formal request to an insurance company asking for a payment based on the terms of the insurance policy. The insurer reviews the claim for its validity and then pays out to the insured or requesting party (on behalf of the insured) once approved. That’s why it’s important to work with an insurance broker who will look out for your best interests in the case of technical insurance complications. 

RBS is the largest independent broker in the Western Cape and has recently expanded, with offices now in Gauteng. As a broker, we must make sure our clients’ claims are dealt with concisely, so we ensure we are always well informed about SAFSIA’s latest announcements.

Insurance and risk are a part of life but rejected claims shouldn’t be. 

Understanding Insurance Claims with RBS

To answer the topical question – no; an expired driver’s license is not a sufficient reason for an insurer to repudiate a claim. This is according to SAFSIA (South African Financial Services Intermediaries Association); an organization to which many South African insurers belong. SASFIA has agreed that failing to renew a plastic card driver’s license is not grounds for insurers to reject paying a claim. In this case, it’s evident that the driver is licensed; it is merely the proof of the license that has expired.

It, however, remains an offence to drive with an expired driver’s license, and you are at risk of a traffic fine if you do so.

Some cases have also been reported recently in media where a motor vehicle claim was repudiated by an insurer because the license disc on the windscreen had expired; rendering the vehicle ‘un-roadworthy.’ The insurance industry’s commercial policy, Mutlimark III, clearly states that the driver will be considered licensed to drive the vehicle if non-compliance with any licensing law is solely because of failure to renew any license that is subject to periodic renewal.

Consumers should be cautious of those insurers who feel that by not renewing your license you are breaking the law and, of course, can’t possibly pay a claim for a lawbreaker, which leads to your claim being denied. 

At RBS we understand the importance of being intermediaries who will alert you to any discrepancies for not paying a claim. It is our job to ensure that our clients are fully acquainted with the terms and conditions of their insurance policy before there is a claim and it’s too late. We also continuously work with our clients to ensure that sums insured are revised regularly and kept up to date.

Insurance Claims that can be declined

Insurers can decline claims for incidents that involve breaking the law, i.e., drunken driving, driving without a license (you have never had a license, or it has been endorsed) and driving an un-roadworthy vehicle. If the accident was caused by the un-roadworthiness of the vehicle, such as very smooth tyres that caused skidding on a wet road.   

About SAFSIA (South African Financial Services Intermediaries Association)

SAFSIA is an association of short-term, long-term and employee benefits insurance intermediaries. Recognised as a leading association in the insurance industry by the Financial Services Board (FSB), local providers of financial services products and their representative bodies, it is a national voluntary body whose roots go back some 50 years. 

SAFSIA’s prime mandate is to protect, promote and advance the common interests of its members, including liaising with the Government and its regulatory authorities on new legislation and regulations.

It interacts with industry bodies such as the South African Insurance Association (SAIA) and the Life Offices Association (LOA). SAFSIA is also a member of the Institute of Retirement Funds (IRF) and is represented on the IRF Legal and Technical Committee and is a member of the World Federation of Insurance Intermediaries (WFII).

The RBS Way

As a member of SASFIA, we strive to live the RBS way which entails abiding by our 5 core values, i.e., Relationships, Excellence, Accountability, Communication, and Integrity. With these principles being the backbone of our organization, we will do everything it takes to ensure we bring real value to our clients even if sometimes it means going out of our way to do so.

RBS is insurance solved!