What Motor Insurance is:
Motor insurance gives protection to the vehicle owner against
(I). damages to his/her vehicle and
(ii). pays for any Third Party Liability determined as
per law against the owner of the vehicle. Third Party
Insurance is a statutory requirement. The owner of
the vehicle is legally liable for any injury or damage
to third party life or property caused by or arising out
of the use of the vehicle in a public place. Driving a
motor vehicle without insurance in a public place is
a punishable offence in terms of the Motor Vehicles
Act, 1988.
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Types of Motor Insurance cover: Broadly there are two types of insurances policies that offer motor insurance cover: a. Liability Only Policy (Statutory requirement) b. Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover) Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.
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