An accident that causes injury or death can have disastrous consequences for the person responsible. If you are held personally liable, insurance may be the only thing protecting you and your dependants from bankruptcy.
For example, a 38 year old farmer was RECENTLY paid R10 million after suffering severe brain damage following an accident. The original claim amounted to R20 million. There is also currently a claim against the Road Accident Fund by a Swiss national for R60 million. Given the increasing value of liability settlements handed down by South African courts, policy holders should buy the highest liability cover that they can afford. Limits of up to R30 million are available at surprisingly cheap premiums.
Massive liability does not only attach to instances of damage to life and limb. Property damage has the potential for huge liability as well. For example, if you are responsible for a fire that spreads to a parking lot, or an adjacent building, or an electrical installation, the repercussions can be enormous. [From an article in the FA News Online Newsletter 17/4/2008]
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