1. Workers’ Compensation (WC), the Unemployment Insurance Fund (UIF) and Occupational Diseases in Mines and Works (ODMWA) are named as compulsory insurance that apply to workers in South Africa.
What type of insurance is compulsory?
Compulsory insurance is insurance that must be legally owned to do an activity, such as auto insurance and driving a car. Other types of compulsory insurance include workers’ compensation and professional liability insurance.
What is meant by compulsory insurance?
Compulsory insurance would ensure a guaranteed minimum for all, exploit no one, and respect non-paternalism. Finally, the compulsory insurance view guarantees a minimum for all and freedom from exploitation, but it seems unable to respect the value of non-paternalism.
What is compulsory insurance and examples?
Compulsory Insurance — any form of insurance that is required by law. In most states, for example, automobile liability insurance is compulsory for all automobile owners.
Is 3rd party insurance compulsory in South Africa?
Third party insurance was compulsory in South Africa from 1942 until 1997, but today, seven out of every 10 cars on South Africa’s roads aren’t insured. Third party insurance covers motorists for liability to other people and their property as the result of an accident.
What are the 4 types of insurance?
Different Types of General Insurance
- Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. …
- Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. …
- Travel Insurance. …
- Health Insurance.
What are the 7 types of insurance?
7 Types of Insurance
- Life Insurance or Personal Insurance.
- Property Insurance.
- Marine Insurance.
- Fire Insurance.
- Liability Insurance.
- Guarantee Insurance.
- Social Insurance.
What types of insurance are not required by law?
5 Types of Insurance You Don’t Need
- Mortgage Life Insurance. There are some insurance agents that will try to convince you that you need mortgage life insurance. …
- Identity Theft Insurance. …
- Cancer Insurance. …
- Payment protection on your credit card. …
- Collision coverage on older cars.
What is the difference between compulsory and non compulsory insurance?
Non-compulsory insurance is purchased at the option of the buyer. For example, a consumer can decide to purchase a life insurance policy but is not required to by law. … Compulsory insurance is required by law or as a mandatory requirement of obtaining certain goods or services.
What is a premium?
Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. … For taking this risk, the insurer charges an amount called the premium. The premium is a function of a number of variables like age, type of employment, medical conditions, etc.
What is difference between compulsory and mandatory?
Compulsory and mandatory essentially mean the same thing, as in you have no choice. But compulsory means you have to do, mandatory means it must be done.
What are the 3 types of car insurance?
The three types of car insurance that are universally offered are liability, comprehensive, and collision insurance. Drivers can still purchase other types of auto insurance coverage, like personal injury protection and uninsured/underinsured motorist, but they are not available in every state.
What are the two main categories of auto insurance?
There are two basic types of insurance that protect your vehicle: collision and comprehensive.
How does third party insurance work in South Africa?
Third-party insurance cover is a basic type of insurance that covers you only against third party claims if your car is involved in an accident in South Africa and you’re legally liable for damage to another person’s property. Under this option, your car itself is not covered against any loss or damage.
Is car insurance mandatory in South Africa?
Unlike in many countries, car insurance in South Africa is not compulsory. However, there are a high number of road accidents and vehicle thefts in South Africa each year. Thus, it makes sense to take out a good car insurance policy to protect yourself against unnecessary expenses.
Is 3rd party insurance compulsory?
The policy does not provide any benefit to the insured. However, it covers the insured’s legal liability for death/disability of third-party loss or damage to third-party property. Description: Since the third-party insurance cover is mandatory, all non-life insurance companies have an obligation to provide this cover.