South Africans are advised to be wary of buying a car from a private seller that lacks a history of ownership and other essential paperwork that offer undeniable proof of its legitimacy.
This issue was recently highlighted by a court case in Gauteng, where an individual’s insurance claim was denied once it was discovered that their vehicle was cloned.
Beware of cloned cars
Vehicle licence plate cloning is a major issue in South Africa that can create a massive headache for anyone unlucky enough to have their car copied.
However, there is also an element of risk to anyone who buys a cloned car, especially if they are not aware of the model’s true nature.
This was the case for a Gauteng resident who bought a Nissan Almera for R80,000 from a private seller.
The individual only had the car for two months before he was hijacked by three armed men while travelling through Eldorado Park, who took his belongings and his vehicle, reported SowetanLive.
He subsequently opened a case with the police and reported the matter to his insurer, Old Mutual, only to be met with the shocking news that his car was allegedly cloned and that his claim had been rejected.
“During investigations conducted following the claim being reported, material information has come to the attention of the company,” Old Mutual wrote in response to the matter.
It highlighted that the Almera was a cloned vehicle which is not a legal asset in South Africa and is therefore not insurable under the terms of the victim’s policy.
The vehicle owner claimed that he had no knowledge that the car was cloned, which was acknowledged by Old Mutual, though it did not change the outcome of his application.
“Had we known the vehicle was cloned, we would not have insured it,” it said.
One silver lining is that the company said it would pay back the client’s premiums.
“I could not understand why they rejected it, because the car was bought legitimately with an affidavit from the police made by the seller,” said the owner.
“I had also given Old Mutual all the car’s details and they did not identify any issues with it before they insured it. Now that they have to pay, they see problems.”
He claimed that the insurance company did not provide adequate evidence that his car was cloned, reasoning that, if it was cloned, there should be an original vehicle.
“How did they physically conduct an investigation when they did not recover my vehicle but also have nothing regarding the so-called original vehicle,” he said.
The victim has since taken his case to the Ombudsman to seek intervention on his claim.
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