This blog is co-authored by Raaiqhah Akoo, a candidate attorney.

In March 2025 the High Court decided that the repudiation by an insurer of a claim for indemnification under an insurance policy was lawful due to the insured breaching the terms of the policy by providing false information during the assessment of his claim and driving his motor vehicle whilst under the influence of alcohol.

The insured and the insurer entered into a valid short-term insurance policy by which the insured’s motor vehicle was comprehensively covered against damages arising out of a motor vehicle collision. Subsequently, the insured’s motor vehicle was damaged beyond economical repair in a collision.

The insured informed the insurer that his motor vehicle was at a stop street when he heard a bang on the left side of his vehicle. He did not know how the collision occurred, what the road looked like or that he collied with another vehicle. The insurer’s investigation revealed that the collision was caused by the insured’s motor vehicle moving across the barrier lines of the road, whilst being out of control, and veered off the road to the right side causing the collision with another vehicle.

The insured denied he was driving under the influence of alcohol at the time of the collision. However, the police officer who attended the scene of the collision found beer bottles in the motor vehicle. Further, the police officer noticed that the insured’s eyes were red and his breath smelt of alcohol when he spoke to him at the scene of the collision. During the insurer’s investigation, the insurer established that the insured was charged with reckless and negligent driving and driving under the influence of alcohol in respect of the collision.

In repudiating the insured’s claim for indemnification under the policy, the insurer relied on the policy terms which entitled it to reject a claim if the insured was driving under the influence of alcohol, or if the insured submitted a claim or information that was in any way fraudulent or dishonest.

The main issue before the court was whether the insured had materially breached the terms of the policy by providing false, misleading, or incomplete information, and by driving under the influence of alcohol at the time of the collision.

The court decided that the insured had provided false information to the insurer during the assessment of his claim, which was material for determining the claim. Further, the insured drove his motor vehicle whilst under the influence of alcohol at the time that he caused the collision. As a result, the repudiation by the insurer of the insured’s claim for indemnification under the policy was lawful due to the insured’s breaches of the terms of the policy.

This judgment serves as a lesson for insureds not to provide false, misleading or incomplete information to an insurer when submitting a claim for indemnification under a policy.

S Mavela v Outsurance Insurance Company Limited (28 March 2025)

Mavela v Outsurance Insurance Company Limited (2887/2021) [2025] ZAFSHC 95 (28 March 2025)