SATIB Insurance Brokers Brokers has developed a unique product called PAXSURE to cover tour operators in the event of death or disability to their guests while on the road. This product bridges the gap between your responsibilities as a tour operator, and the limits in the current Road Accident Fund (RAF).
Current RAF legislation prohibits a person (you or one of your guests) from seeking legal remedy from anyone other than the RAF for personal injury due to a motor accident in South Africa.
While this may appear to absolve the vehicle owner of having personal liability cover, a closer look at the legislation reveals that vehicle owners can still be held accountable for certain negligent actions.
The vehicle owner can still be held accountable for issues such as:
- Emotional shock and trauma. This applies, for instance, to a parent witnessing or learning of the death of a child,
- Persons injured while embarking of disembarking a vehicle, or where the vehicle is stationary or switched off,
- If the RAF is declared insolvent, or,
- Any other incidents which would need to be tested in court. This may mean substantial legal costs are incurred in defending such an action.
Tour operators should remember that any cover for vehicles operating outside of South Africa remains a necessity, even if the trip is of a short duration. A Sani Pass trip, as an example, means a short trip through Lesotho, and will require cover.
PAXSURE is effectively a Motor Personal Accident Policy and pays out for death and disability regardless of who was at fault, or whether the RAF will or won’t pay out.
Unlike a basic Personal Accident Policy, which cover a named individual, PAXSURE is attached to a nominated vehicle, and cover unnamed passengers who being transported in the vehicle on a per seat basis. This cover extends to the driver and other employees while in the specified vehicle.
PAXSURE is a no blame product. This allows you to compensate your guests for death or injury in the event of a crash.
Currently Transport Boards require a Passenger Liability Insurance Policy, which is also something underwriters recommend. We recommend a combination of both. While PAXSURE is comprehensive, it is not legally required like passenger liability cover. The differences between the two are:
PAXSURE Cover Passenger Liability
Claims paid on a ‘no fault basis’ Claims paid on at ‘at fault basis’
R100 000 medical expenses per seat No medical expenses
No legal costs Covers legal costs
Cover for all in the vehicle (including driver & other employees) Excludes driver & other employees
Costs for PAXSURE cover are extremely competitive. For instance, R250 000 PAXSURE cover per seat will cost about R45 per month (based on six seats, including driver).
For more information on PAXSURE, please contact Stacey Elliot on stacey@satib.co.za
