Auto insurers will not reject claims if the license card is not renewed –



Auto insurers say they will not refuse claims if the driver’s license card is not renewed. Your driving license does not expire, only the card does, provided you have a valid driving license to begin with.

The grace period for renewing your driver’s license cards expired today and many consumers who have struggled to renew their cards are concerned that their insurers will not accept their claims if they drive now and get involved in an accident.

Fortunately, this is the one thing you don’t need to worry about. According to Thabo Manamela, Santam’s head of quality and knowledge management, the company has acknowledged the end of the grace period for renewal of the driver’s license and acknowledges the concern among policyholders about their coverage should they be have a valid motor vehicle claim while holding an expired driver’s license.

“Santam is keen to point out that the license does not expire, but only the card that requires renewal every five years. The delay of the authorities in issuing the license card does not mean that the driver does not have a license and therefore Santam will not summarily penalize customers for the challenges faced by the department. “

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Still important to renew your driver’s license card

However, Santam advises policyholders to still take reasonable steps to ensure that they request renewal of their license cards before they expire. Santam will accept evidence, such as a receipt or a temporary driver’s license during complaints until the challenges facing the department are resolved.

Ricardo Coetzee, Head of Auto & General Insurance, says that if the customer does not have a valid driver’s license at the time of the accident due to a purely administrative process that is beyond the customer’s control, the expired license will not affect the claim.

“We urge customers to continue their efforts to renew these licenses as soon as possible as they are not yet licensed to drive on the roads. We consider the risk when we assess an accident and an administrative delay does not increase or decrease the risk of driving a vehicle.” .

Francois Theron, Deputy Chief Executive Officer of Discovery Insure, says drivers and vehicle owners will be recognized as legally licensed should they appeal a Discovery Insure insurance plan as long as they have a valid, even if expired, license.

“We have encouraged our customers to plan for delays and renew their licenses as soon as possible before expiration. Vehicle licenses must be renewed as usual according to the established periods “.

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The reason for the rejected requests must be directly related to the cause of the accident

King Price Customer Experience Partner Wynand van Vuuren also says that an expired driver’s license due to a backlog of renewals will not affect your coverage.

“The important issue to keep in mind is the ‘causal link’ principle, which means that the reason for the rejection of the claim must be directly related to the cause of the accident or loss.”

All insurance policies, for example, stipulate that your vehicle must always be in a roadworthy condition. However, if your car’s tires are worn and someone enters you while your car is stationary, an insurer cannot refuse your claim, as there was no causal link between the worn tires and the accident.

“Likewise, if your license disc has expired and an accident occurs or your vehicle is stolen, insurers will have to pay for those claims, as the license would not be relevant to the accident. Just make sure the vehicle is always there. roadworthy and that there are no additional factors that can cause or contribute to an accident “.

Rudolf Britz, head actuary of Momentum Insure, says that in cases involving expired or invalid driving licenses, each claim will be assessed on its own merits and the materiality of driving with an expired license, particularly when it was not under control. of the customer to be able to renew it.

“It is important to distinguish between complaints where a customer has never had a driver’s license and where customers drive with a license that has expired for reasons beyond their control. In cases where a customer has never had a driver’s license and now driving without a valid driver’s license, circumstances will be different from a customer who had a driver’s license for many years and simply could not renew his license due to circumstances beyond his control ”.

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Hollard Insure grants a grace period until September

Hollard Insure has also decided to further extend the grace period for complaints to renew expired licenses until September 30, 2022, but says this extension does not cancel the license renewal obligation.

“This implies that we will continue to settle our policyholders’ legitimate claims where policyholders drove with an expired driver’s license until September 30, 2022, after which we will ask our policyholders to renew expired licenses before valid claims are cleared.”