South African insurance law

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Insurance in South Africa describes a mechanism in that country for the reduction or minimisation of loss, owing to the constant exposure of people and assets to risks (be they natural or financial or personal). The kinds of loss which arise if such risks eventuate may be either patrimonial or non-patrimonial.

A general definition of insurance is supplied in the case of Lake v Reinsurance Corporation Ltd,^[1] which describes it as a contract between an insurer and an insured, in terms of which the insurer undertakes to render to the insured a sum of money, or its equivalent, on the occurrence of a specified uncertain event in which the insured has some interest, in return for the payment of a premium.

The law of insurance in South Africa consists of

• rules peculiar to insurance (like the rules on insurable interest, subrogation and double insurance);
• rules applicable to all contracts (like the rules on offer and acceptance, and contracts in favour of third parties); and
• general contractual rules that have undergone changes in the insurance context (like the rules on insurance warranties).

Broadly speaking, the law of insurance in South Africa is concerned with

• the conclusion and consequences of insurance contracts;
• general aspects of law of damages;
• the rules on insurance intermediaries;
• insurance tax law; and
• insurance company or supervision law.