Dramatic changes lie ahead! Tough new legislation has far-reaching implications for anyone involved in the transport of goods that are even remotely hazardous. Strict liability now means that the transporter must automatically pay for all clean-up costs, civil liability and cost to rehabilitate the environment, up to an unlimited amount! As South Africa’s premier specialised transit insurance provider, Senate has developed the first comprehensive pollution liability insurance product designed to cover this financial risk, thereby protecting the very livelihood of the transporter.

Despite the fact that this legislation is already in force, many transporters seem oblivious to the huge risks they now face and the consequent financial burden. In addition, transporters are required by law to have appropriate insurance cover; by not complying they are guilty of an offence punishable by maximum penalties of R100 000 and/or two years’ imprisonment.

Insurance brokers are having to rethink their belief that the standard third-party section of the motor policy will be adequate to meet requirements. This is very sensible when one considers the tremendous scope of potential consequential liabilities that will arise; in addition, the trend among most motor underwriters, particularly those specialising in the transport industry, is to now exclude any liability consequential to the transport of hazardous cargoes. While this is understandable, as the standard premiums charged are not geared to accommodate this increased risk potential, this leaves the transporter exposed to massive risk.

While the insurance broker has no responsibility to advise clients of their legal obligations, the insurance broker does have a responsibility to advise clients on any insurance product that can protect them against these. In addition, it makes for good business practice because if a client has to pay out several million rands for environmental rehabilitation costs, he will not be a client for very long thereafter.  more >>

“…transporters are required by law to have appropriate insurance cover; by not complying they are guilty of an offence punishable by maximum penalties of
R100 000 and/or two years’ imprisonment.”