Initially The Motor Vehicle Insurance Act (Act no. 29 of 1942) required each and every motor vehicle used on a public road to carry Third Party Insurance. A token providing details of the Insurer was displayed on the windscreen of the vehicle. The Multilateral Motor Vehicle Accident Fund of 1989 replaced the entire system by introducing a tax levied on each litre of fuel sold to fund the cover as provided by the Act. The cover provided by the fund extends to death or bodily injury to third parties, but does not always protect you fully. 

This type of cover provides protection in the event that you incur legal liability as a result of you or your driver having caused loss or damage to a third party’s property. The cover also protects you in the event that you cause injury to a third party in an instance where you do not enjoy protection from the provisions of the Road Accident Fund Act of 1966.

Under this type of cover you are not indemnified in respect of any damage or loss to your own vehicle.