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RRLLB81 Assignment 2 Semester 2 2024
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RRLLB81 Assignment 2 Semester 2 2024
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RRLLB81ASSIGNMENT 2
DUE 17 SEPT 2024
,LIABILITY INSURANCE IN SOUTH AFRICAN LAW AS A COMPLEX FORM OF
INDEMNITY INSURANCE
By
NAME STUDENT
NUMBER
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
In the
SCHOOL OF LAW UNIVERSITY
OF SOUTH AFRICA RRLLB81 –
ASSIGNMENT 2
MR LC COETZEE
2024
,TABLE OF CONTENTS
Academic Honesty Declaration ................................................................. 9
Abstract ........................................................................................................ 10
Keywords ..................................................................................................... 11
List of Abbreviations and Acronyms ......................................................... 12
1. Introduction ............................................................................................. 13
Background
Problem Statement
Hypothesis
Research Methodology
Assumptions
2. Liability Insurance ................................................................................. 17
Concept and Scope
Legal Framework in South Africa
3. Legal Challenges .................................................................................... 20
Duty to Indemnify
Managing Third-Party Claims
4. Conclusion ............................................................................................... 23
5. Bibliography ............................................................................................. 23
, ABSTRACT
This study investigates the complexities surrounding liability insurance within South
African law, focusing on its role as a type of indemnity insurance that addresses the
insured’s legal obligations to third parties. Despite its vital function in safeguarding
against third-party claims, liability insurance is often misunderstood, especially regarding
the insurer’s responsibility for indemnification and the management of defense and
settlement processes. The paper critiques the absence of comprehensive statutory
regulation and the scarcity of judicial guidance, revealing the legal difficulties arising from
the complex nature of third-party responsibilities and contractual elements. Through an
analysis of pertinent case law, legislation, and scholarly commentary, this research
emphasizes the need for more robust legal structures and clearer judicial interpretations
to better address the challenges of liability insurance in South Africa, ultimately aiming to
enhance the coherence and predictability of insurance law.
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