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Private, Business or Commercial insurance? – OSTI clarifies your questions

A recent article on the distinction between private, business and commercial motor insurance raised a few questions from our readers:

“According to this article we all have to insure our vehicles for business use. All admin staff in a company attends training off-site every now and then.”

“If the examples are followed closely, most working people need to insure for business use.” 

“What effectively happens, because somebody attends a team building event or year-end function annually, we need to insure for business use!  The teacher driving to another school to attend a meeting now needs to insure for business use, although it may happen once or twice a year! “

We contacted the Ombudsman of Short-term Insurance, who responded as follows:

“The majority of insurance policies cover the insured on a month-to-month basis. Considering whether to insure your vehicle for business use will depend on the frequency on which the vehicle is used for this use. It is safe to say that attending a work-related meeting or event once or twice a year will not require business insurance.”

“To ensure full disclosure, consumers are advised to disclose this information to the insurer during underwriting or the operation of the cover if their personal circumstances change,” according to Ayanda Mazwi, Senior Assistant Ombudsman.

Continue to ask questions – if you have any questions or queries with regards to the content that is published, please forward it to – your question might just assist your fellow financial adviser.

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