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How to Protect Your Business with Passenger Liability Insurance

Passenger liability cover is essential for those transporting passengers by land, air, or sea.”


Protect Your Business with Passenger Liability Cover

We help you find the right types of insurance by helping you compare quotes. Passenger liability insurance covers drivers and passengers in the event of fatalities and bodily injury incurred on South Africa’s roads. Insurance companies have created passenger liability to cover incidents that result from the transportation of passengers by land, sea, and air.

Passenger liability cover could also form part of vehicle insurance cover. You might be a taxi owner or transport passengers for leisure purposes. You may need passenger liability cover if you transport passengers for whatever reason. Ensure your cover is enough the bills of an injured person or other costs associated with an accident where you are liable.

Passenger liability insurance covers both large and small groups of passengers against all eventualities. Ensure the wording on your policy schedule includes fare-paying passengers. Passenger liability cover is not the same as personal accident cover, and depending on the policy you choose, you may need both types of cover.

What You Need to Know About Passenger Liability Insurance

  • You may need this type of cover if you transport passengers, whether large or small groups.
  • You may need passenger liability to cover the death and injury of passengers. This is when transported in a company vehicle.
  • Passenger liability insurance and liability insurance differ from each other. Passenger liability provides cover while a client is inside a vehicle. The vehicle could be stationary or moving.
  • Public liability covers a client no longer inside a vehicle.
  • You make the choices regarding the amount of cover you need for your business.
  • Your insurer will work out your premiums, and it may depend on the number of passengers you transport.
  • The countries your passengers travel to can determine your premiums. 

How You Can Protect Your Business with the Right Types of Insurance

Passenger liability cover in South Africa can be valuable to car owners even though we also have a road accident fund. The Road Accident Fund pays out for injury and loss of income to South Africa’s road users because of accidents. When someone is injured in an accident on South Africa’s roads, they can claim from the Road Accident Fund to cover the costs of the medical care. 

Passenger liability insurance covers drivers and owners of transport devices against claims by individuals injured in an accident. If the driver or vehicle owner is sued for being liable for losses and injuries, passenger liability insurance comes into play.

The Road Accident Fund often covers such claims, but there can be a few loopholes, which is when you will need passenger liability insurance. These loopholes can include:

  • When the Road Accident Fund cannot honour a claim pay-out.
  • If the claim is for an emotional shock or secondary shock. Individuals suffering from secondary shock include those that have seen an accident. It is also for individuals that have heard of the event.

What You Need to Know About Premium Calculations

Drivers must have the correct licensing for transporting passengers. This is according to the regulations of the province in question. This is for full- or part-time transportation. It could include school transportation. It could also be for tourism or to transport passengers from one point to another.

Passenger liability cover is important for all types of businesses where vehicles are used to transport people.It offers cover for vehicles used to transport fare-paying passengers too. Most motor insurance policies exclude this type cover, so without passenger liability insurance your passengers won’t be covered. Most passenger liability insurance policies won’t pay out if you have too many passengers in your vehicle, if the driver isn’t licensed, or if you are in an accident while breaking the law.

How Are Liability Claims Determined?

Most insurers will limit you per occurrence, and not per seat. This could limit the passenger liability you need. The more passengers you transport, the bigger the limit is that you will require.

Liability Insurance Quote Comparisons

You can save money on your monthly passenger liability insurance premiums. A low claims record may help your service provider lower your premiums. Parking vehicles in a safe, lock-up facility at night may also reduce premiums. You may also save money on premiums by training drivers of passenger vehicles. To find a passenger liability policy that suits your business, just fill in our online form for a free quote.

DISCLAIMER: The information provided in this article is meant for informational purposes only and should not be construed as legal, medical, or financial advice. Facts stated in this article are correct at the time it was published.

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