Due to the principle of common law, is personal liability your responsibility towards others. As consumers of South Africa, we all form part of the principle of common law. It is clear to us that personal liability claims will be as a result of any damages caused by your negligence. An example of such a claim would be if someone is bitten by your dog in front of your home in the street. The injured person can then sue you for this, and then you can claim from your personal liability cover to cover for the damages caused by your dog.
This car insurance policy will only pay out if you were found guilty in court. If the legal advisers of your company feel that you will anyway be found guilty, then they would pay out with out the consent of the court in order to save them the money of the legal costs. Personal liability cover will also pay for your legal costs if you have been sued by the injured party.
It is important that you know that if you commit a act where you know that you will cause damage to someone then the insurer are not obliges to pay out. It has to have been an accident.
We have found that before August 2008, most of car insurance policies have personal liability cover included in the policy. In August 2008, there have been big changes. They have stated that an injured person cannot claim against a driver who has caused the damages. Victims should now claim against the Road Accident Fund.
There are thus a few consequences of this change. We don’t have to invest in a personal liability policy anymore, as the victim should claim from the accident road fund of South Africa. The victims can only sue you for shock treatment.
We can see that there is no need as a driver to obtain personal liability cover anymore as injured victims must claim from RAF. This system is still fairly new to us and is currently being tested in the courts of South Africa.