as proxy for this vehicle . This does mean that even if you drive a company vehicle , you will also accrue demerit points against your driver ’ s licence should you incur an infringement .
Although there is no clarity as to how employers will be able to access the points status of employees , the Act is unambiguous in that an employer can be held responsible if it allows a person whose licence has been suspended , to operate one of its vehicles .
With regard to the roadworthiness of a vehicle , the company as the owner of the vehicle will be held responsible , and demerit points will be issued against the licence or operator disc of the vehicle . The vehicle can therefore also accrue demerit points to the extent that it is not allowed to be driven by anyone for a specified time .
It is therefore important that the company ( as the owner of the vehicle ) and the employee ( as operator ) ensure that company vehicles are always roadworthy .
All companies offering shortterm car insurance require that drivers of insured vehicles have a valid driver ’ s licence . The risk of a client clearly changes if a licence is suspended or withdrawn . It will be the client ’ s responsibility to update his / her insurance accordingly . This will mean that although short-term insurers – such as PPS Short-Term Insurance – will still insure the vehicle , they will not honour any accident or damage claims where a driver was driving while his / her driver ’ s licence was revoked or suspended . Insurers might also consider additional conditions and / or excesses should a driver exceed a certain number of demerit points .
PPS Short-Term Insurance Company Limited is a licensed insurer and authorised FSP .
35