Homework Answers

(a) Isaack buys a second-hand car from Reliable motors for R200 000. Isaack insures

the car for R200 000 with Amazing Insurance Company.

Advise Isaack as to the nature of the insurance contract that he has concluded with

Amazing Insurance Company. (7)

(b) Your motorcycle is valued at R250 000. You insure the motorcycle with C Insurers for

R250 000. You also decided to insure the motorcycle with D Insurers for R250 000.

While on a Sunday morning breakfast run you damage your motorcycle by hitting a

tree on the side of the road. The damage amounts to R250 000. Both insurers

indicate that they will rather compensate you instead of repairing the motorbike.

What amount of compensation can you claim from C Insurers and D Insurers? (10)

At your local shopping center Aunt Molly reverses into your parked car. Both the

taillights as well as the boot of your car are damaged. Neither Aunt Molly nor you

have insurance. Your estimation is that the damage to your car will amount to around

R5000.00. Aunt Molly denies that she is the guilty party and indicates that she will not

pay for the damage to your car. You would like to settle the matter as quick and

cheap as possible without legal representation. Indicate which court you will approach

for assistance and in your answer also discuss the jurisdiction of the court you will

approach.

(11)