Liability and third-party insurance: Your questions answered

Questioner

Suppose I am held liable for something (third-party liability issue) and I report the situation to my third-party liability insurance to have it investigated, but I am not held liable through my third-party liability insurance. Could I then be held personally liable, independently of my insurance? Suppose the WA does hold me liable, could the amount paid out be less than the costs incurred by the other party, and could I be held personally liable for the remainder of the money?

Questioner

Dear questioner, If you are held liable (directly or indirectly) and you subsequently report the matter to your liability insurer, your insurer will consult the policy conditions and assess whether your insurance provides coverage. Only if your insurance provides coverage will they investigate liability. If, based on this investigation, they determine you are liable, they will compensate the other party for the damage, at least up to the insured amount. If the damage exceeds the insured amount, you may be held personally liable for the remainder of the damage. You will then have to pay this amount to the other party yourself. Good luck.

Questioner

In addition to the excellent advice from my colleague Ms. Smit, I would also like to point out that if your third-party liability insurance company believes your liability insurance covers you, you are no longer permitted to do anything and must leave the claim settlement to the insurer. If you don't, you run the risk of your insurer not compensating you. Furthermore, the third-party liability insurer will also cover the costs of any legal action.