How festive risks could leave you uninsured

DRINKING and driving, leaving your home unattended, and leaving valuables visible in your car could see your insurance claims rejected this festive season, as a quarter of South Africans prepare to hit the road.

- NICOLA MAWSON

Online lender Wonga's Summer Spending Survey of more than 10,000 South Africans found that 26% plan to travel, with KwaZulu-Natal, the Eastern Cape, and Gauteng topping the list.

Although this is a time for celebration, it also brings higher risks, including increased crime levels, says Tarina Vlok, MD of Elite Risk Acceptances, a high-net-worth insurer and a subsidiary of Old Mutual Insure.

Beyond the increased crime risk, the festive season brings another major insurance pitfall. The non-life Insurance Division of the National Financial Ombud Scheme has already seen a surge in complaints where motor vehicle accident claims were rejected because the driver was found to be under the influence of alcohol or another intoxicating substance.

Lead Ombud Edite Teixeira-Mckinon explains that a claim against an insurer is a civil matter, not a criminal one. This means the insurer does not have to prove its case beyond reasonable doubt.

Instead, she says, it only has to show that it is more likely than not that the driver was under the influence of an intoxicating substance. Because this is a lower standard of proof, the insurer can rely on different types of evidence to justify rejecting a claim.

Some examples that insurance companies have relied upon to reject a claim include:

• The location of the driver before the accident, such as at a pub where alcohol was consumed

• Vehicle tracking data and cellphone records showing that a driver was somewhere other than where they said they were

• Video footage of the driver drinking alcohol