South Africa’s Disadvantages Point System and Your Short Term Insurance – What You Need to Know

For most drivers, nothing is more annoying than a dangerously reckless driver or a drive in the face of an oncoming vehicle, says Wilma van der Walt, PPS Short-Term Insurance Customer Experience and Operations Executive. ..

This is a reality for drivers in South African towns and cities, but it may be a thing of the past if authorities properly implement the following disadvantage system.

This is because one of the implications for drivers is that they can lose their license if they commit a road traffic violation.

This not only makes you and your company’s employees unable to drive, but can also affect short-term insurance.

With the new Aarto Amendment Act on Road Traffic Violations, which will come into force on July 1, these are harsh realities that individuals and employers must be aware of.

This is because the Aart Law has a demerit system, and not only individuals, businesses, and corporations pay fines, but also demerit points are generated in the event of a traffic violation.

This can eventually complicate the hiring of individuals whose driver’s license is suspended or canceled or explicitly hired to perform driving functions.

Disadvantage concept

Disadvantages that encourage drivers to comply with traffic laws The concept of a point system may be new in South Africa, but it is an internationally established practice. Such systems have long been in place in countries such as Australia and the United Kingdom.

Although not yet implemented, South Africa’s disadvantage system was already enacted in September 1998 as part of the Aarto Act, Act 46 of 1998.

How does the point system work?

When the system is implemented, the driver starts at zero point. Disadvantage points will be awarded for all violations, including vehicle road resistance legislation.

For example, published guidelines state that if the brake lights are not working in the vehicle, one disadvantage point and a fine of R1,000 will be assigned.

Some violations can lead to up to 6 disadvantage points. A complete schedule of over 2500 individual bills can be found in the Aarto Act.

Drivers can accumulate up to 15 disadvantage points in 3 years. However, learner drivers are only allowed a maximum of 6 points.

If your driver’s license exceeds this number, your driver’s license will be suspended for 3 months. Driving while your license is suspended can result in fines or imprisonment.

The good news is that the disadvantage points are reduced by 1 point every 3 months. This means that the driver can return to the zero point over time.

The license may be suspended twice, but the third time the license is cancelled. The person then needs to apply for a new learner’s license and driver’s license.

Company car and Aart method

For company-owned vehicles, the Aart Act is clear about how the disadvantage system works.

The law states that companies must accurately record who the driver of a vehicle is. If a traffic violation is recorded, the company must ensure that the right person, not the person appointed as the vehicle’s agent, will be at a disadvantage.

This means that even if you are driving a company car, if a violation occurs, you will incur disadvantage points for your driver’s license.

It is not clear how the employer will access the employee’s loyalty status, but the Aarto Act makes the employer responsible if the license is allowed to operate by a person whose license has been suspended. A vehicle that is very clear in that it can.

The company that owns the vehicle is responsible for the road resistance of the vehicle, and demerit points are issued for the vehicle license or driver’s license.

Therefore, the vehicle may also earn disadvantage points for a specified period of time, to the extent that no one is allowed to operate it. Therefore, it is important for the company (as the owner of the vehicle) and the employees (as the operator) to ensure that the company vehicle is always durable.

Aart Law and Your Short Term Insurance

All companies that offer short-term car insurance require that the driver of the insured vehicle have a valid driver’s license. If the license is suspended or revoked, the client’s risk will obviously change and it is the client’s responsibility to renew the insurance accordingly.

In other words, short-term insurance companies such as PPS short-term insurance insure certain vehicles, but accidents and claims for damages that the driver of that vehicle was driving while the driver’s license was revoked are not respected. Hmm. Or pause.

Given the introduction of the Aarto Act, insurers may also consider additional conditions or excesses if the driver exceeds certain disadvantage points.

  • Wilma van der Walt, Executive: Customer Experience and Operations for PPS Short Term Insurance

read: New road legislation will come into force in South Africa next month – these questions still need to be answered

South Africa’s Disadvantages Point System and Your Short Term Insurance – What You Need to Know

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