Bus Insurance in South Africa

Busses are the second most popular mode of transport, with 7.1% daily commuters
 Bus or Coach Insurance
'Party' busses have become increasingly popular for transportation,
where care should be taken in the types of coverage required

Why Bus Insurance:
The bus industry in South Africa has for many years made a vital contribution to the economic and social development of the country. As a provider of bus services it has and continues to provide mobility to millions of people who are dependent on public transport, for example, learners who require transport to and from school, workers who require transport to and from their jobs, and individuals who are seeking employment or access to hospitals and other services. Available statistics indicate that 70 per cent of South Africa’s population is dependent on public transport (eg. bus, commuter rail and taxis) for its mobility needs

Running a business that involves the use of busses, means you or your hired drivers are transporting people — whether across town or across the country. Because you deal with the public, you need the right insurance to cover your vehicles, as well as potential injuries to your passengers in the event of an accident on the road. Perhaps you run a sightseeing company, or you have a church or school that has a bus for transporting people. Or maybe you lease busses to city schools, churches, sports teams, activity groups or senior centers.

Whether you have just one bus or a fleet of busses, you need insurance to protect your business investment.

Operators in the fare-paying passengers industry, should ensure that they have proper cover against any claims which may arise when having passengers in their vehicles — while either moving, or being stationary. Unfortunately, many operators simply don’t bother to take out insurance - they think that if there are injuries, the Road Accident Fund (RAF) must deal with those. However, the RAF may only pay out for physical injuries and not for any damage or loss to personal property.

Since a Construction Guarantee forms an integral part of the construction documents underlying a construction project, it should not be automatically concluded that it must be interpreted with reference to the PBA. Drafting and interpreting construction guarantees remain a complex area of our law. Employers and guarantors, in the context of the construction industry, should, therefore, be mindful of the terms and conditions of the construction guarantee in order to ascertain whether the guarantee intends to create a principal obligation or an accessory obligation to the PBA, as failure to do so will almost inevitably result in complex litigation.

DIB Solutions (Pty) Ltd have partnered with reputable underwriters and various insurance companies in order to assist our clients with appropriate Insurance cover – we can therefore also assist clients with tailor-made products (where applicable) at competitive premiums. We provide a professional and personal service, as well as build long-term relationships with our clients. There are a few types of cover available for the different usages, which can be confusing – therefore discuss your individual needs with one of our experts.
 

Busses used in the passenger transport industry, such as the following:
 
  • Luxury and semi luxury coaches;
  • Mini coaches;
  • Open game-viewing vehicles;
  • Route buses;
  • School or Church busses;
  • Staff busses;
  • ‘Party’ busses;
  • Tour operators.
As each of these types of busses has different roles, different usage and different environments, coverage for each will therefore vary. For this reason, it is important to consult with a knowledgeable Broker.

‘Party’ busses for instance, have become increasingly popular for transportation to and from a wide range of activities, including birthday parties, wedding parties and everything in between. If something goes wrong, the party bus owner can be left with more than just a mess. In addition to the normal commercial liability, or comprehensive coverage types of insurance, you may need additional coverage, such as liquor liability and special equipment coverage — apart from making sure that your bus is compliant with passenger limit and safety regulations. 
 

Also note some of the considerations related to Bus Insurance:
 

Similar to car or vehicle insurance, commercial bus insurance can be broken up into several types of coverage. Due to its large size, a bus can cause extensive damage and injuries in an accident, so it is important to evaluate the appropriate limits on your coverage based on the potential costs of an accident.

A commercial bus insurance policy will typically include the following:

  • Liability Insurance: This is the most important coverage in your policy; it covers your company in case one of your busses is involved in an accident in which you, or one of your hired bus drivers is at fault. It can have two parts: 1) Bodily injury: This portion of the liability policy covers the costs of medical care for a driver or passengers in another vehicle involved in the accident. 2) Property damage: This portion of the policy covers the costs of damage done to other vehicles, or other people’s property. Note that  care must be taken to check that the vehicle policy wording does not exclude fare-paying passengers.
  • Comprehensive Cover: Comprehensive, or “other than collision” coverage, compensates you for loss due to things like vandalism, fire, theft, or damage from an object.
Depending on how you use your bus, you may want to add additional or optional coverage types to your policy. Clients can also consider Excess Liability coverage, known as an umbrella policy. Umbrella policies can dramatically increase your liability coverage limits to protect your business from liability claims that result in a lawsuit.
 

Please contact us today for fast, friendly, professional advice and service!

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