| The Ombudsman for Short-Term Insurance says that | | | | and recorded as a nominated driver on the policy of |
| consumers have a duty to disclose relevant | | | | insurance. Any person who is not nominated and |
| information and any material changes in circumstance, | | | | recorded, as a nominated driver on the policy schedule |
| to their insurers to avoid the possibility of having their | | | | will not be covered in the event of a claim. |
| claim repudiated or the policy cancelled. | | | | The Ombudsman says that consumers should take |
| Consumers must be aware of the difference | | | | heed of the fact that if a vehicle is incorrectly insured |
| between a "regular driver" and a "nominated driver" in | | | | or incorrect information is furnished to an insurer |
| terms of an insurance policy as there is a distinct | | | | concerning either a regular driver or a nominated driver; |
| difference. Most car insurance policies are underwritten | | | | this can result in a policy being declared void from |
| on the basis of either of these descriptions and these | | | | inception, or the insurer having no liability to |
| concepts are used to assess the risk associated with | | | | compensate for any loss or damage. |
| the insurance of a particular vehicle and the premium | | | | If the "regular driver" changes or the place of |
| to be charged. The identity and profile of the driver of | | | | residence changes this could affect the risk of the |
| a motor vehicle is obviously an important factor in | | | | insurer and it is for this reason that they should be |
| determining both the risk and the premium. | | | | notified immediately such a change takes place. It |
| Policies that are underwritten on a "regular" driver basis | | | | stands to reason if you consider the difference |
| usually allow the insured to use their own discretion | | | | between a parent, living in a small country town who is |
| when allowing others to drive the vehicle. These | | | | noted as the "regular driver" according to the policy, |
| drivers can be any person with a valid, non-endorsed | | | | when in fact the car is driven on a daily basis by a |
| driver's license. The regular driver would be the person | | | | young university student living in the centre of Cape |
| who uses the vehicle most frequently and more than | | | | Town. The risk exposure is substantially higher and the |
| any other driver. The regular driver may not | | | | premium would be adjusted accordingly. If the insurer is |
| necessarily be the owner of the vehicle. The | | | | not made aware of the change when it occurs and |
| secondary driver may not be a person that drives the | | | | afforded the opportunity to re-assess the risk, then the |
| vehicle on a more regular basis than the "regular | | | | insurance company can not be held liable in the event |
| driver". It is vitally important that consumers correctly | | | | of a claim. |
| identify the regular driver on their policy in instances | | | | If consumers are in any doubt as to whether their |
| where more than one person will drive a motor vehicle, | | | | motor vehicle is correctly insured or not, they should |
| as failure to do so could result in the repudiation of a | | | | seek professional advice from a licensed broker, |
| claim based on misrepresentation or non-disclosure | | | | insurance advisor or attorney prior to taking out the |
| and the policy can be declared void from inception. | | | | policy. This will avoid many problems that could arise at |
| A "nominated driver" policy, on the other hand, only | | | | a later stage. |
| gives cover to persons who are actually nominated | | | | |