By Ildiko Richardson, Blue Anchor Risk
In March 2000 an Insured by the name of Verulam Fuels had an incident that would have a far-reaching impact on the Motor HCV policy cover into the future.
This matter took over 6 years to come to finality with Insurers and Client not accepting the court finding until it was resolved by the Supreme Court of Appeal (Truck and General Insurance Co Ltd v Verulam Fuel Distributors CC and Another (540/04)  ZASCA 85; 2007 (2) SA 26 (SCA) (31 May 2006)
It was this matter that introduced an exclusion on the soon to be defunct Multimark wording that had been in use in the market for over 30 years (1987- 2007). The exclusion pertained to how the Third-Party section would/ could respond to incidents that arose out of the carry of Dangerous goods.
In essence, the market introduced a full exclusion into the Third-Party Section B of a Motor HCV policy that reads in any one of the following ways:
- “We are under no circumstances liable for any expenses related to seepage, spillage, pollution and/or contamination whatsoever or howsoever arising”
- “Liability arising whilst the Vehicle or any trailer attached hereto is conveying Dangerous Goods as provided for by Section 54 of the National Road Traffic Act 1996”
- Liability arising from “Costs and expenses incurred for clean-up and remedial procedures to remove or repair the effects”
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Momentum Investments is part of Momentum Metropolitan Life Limited, an authorised financial services (FSP6406) and registered credit (NCRCP173) provider.