When you might not be covered

INSURANCE: WON'T PAY OUT IF DRIVER UNLICENSED

- Ina Opperman

With the Adjudication of Traffic Offences (Aarto) looming on 1 December, one thing that is certain: your insurance will not cover you or your car if you are unlicensed and involved in an accident.

When Aarto is implemented, you will get points against your licence. Too many and eventually your licence will be suspended.

Ernest North, cofounder of Naked Insurance, says driving without a valid licence is unlawful and most policies will not pay out for accidents if you drive while your licence is suspended.

Londiwe Mataga, head of governance at Miway Insurance, points out that at the point of sale, it is both responsible and ethical not to offer insurance to people whose driver's licences have been suspended or cancelled under the Aarto system.

"Insurance exists to provide financial protection in the event of a valid claim. However, if a person drives without a valid licence, any resulting claim may be lawfully rejected," Mataga said.