What tyre and rim cover pays for: potholes, kerbs and what is left out

Tyre and rim cover is a plan that pays to repair or replace a tyre or rim damaged by something sudden, such as a pothole, a kerb or road debris. What it pays depends on the plan terms: the limit per wheel, the number of claims and the exclusions. The provider who calls you can explain their plan.

What is tyre and rim cover?

Tyre and rim cover is a product for sudden damage to wheels. A comprehensive car policy sets its own terms on tyres and rims, and your excess may apply, so your schedule and wording say what it does. A tyre and rim plan is a separate contract that pays for that kind of loss on its own terms.

Olvian does not sell it and does not advise on it. Olvian is a lead-referral service: you ask once, and your request goes to licensed providers who pay Olvian a fee and call you back. This guide explains the questions worth asking when they call. It does not tell you whether to buy, what to buy or how much cover to have.

What kind of damage does it pay for?

Plans of this kind are usually described as covering sudden damage from a pothole, a kerb or debris on the road. Each plan defines the damage it covers, and the plan terms are what count, not the advert.

Look for these in the terms:

• The limit for each tyre or rim, and whether it differs for tyres and rims.
• The number of claims you can make in a year.
• Whether repair or replacement is paid, and whether a matching item has to be supplied.
• What proof is needed. Some plans require the damaged tyre or rim to be inspected before it is replaced.
• Who does the work. The plan may require you to use its own fitment centres or repairers.
• Which wheels and tyres qualify. Ask whether wheel size, type or age makes a difference.

What does it not pay for?

Ask for the exclusions in writing. Questions to put to the provider:

• Is normal wear, or a tyre that is already worn down, excluded?
• What happens if a tyre was already below the legal tread depth when I joined?
• Is damage that was there before I joined the plan excluded?
• Is a puncture from a nail covered, or only damage of a particular kind?
• Is cosmetic damage to a rim, such as a scuff, covered, or only damage that makes the rim unusable?
• Is there a waiting period before I can claim?

Do not assume the answers. If a term is unclear, ask for it to be explained before you accept.

How does it relate to car insurance?

A comprehensive policy is an insurance contract that responds to the events it lists, such as collisions, theft and fire, and it comes with an excess. Rule 6.1 of the Policyholder Protection Rules (Short-term Insurance) says the way and extent to which the risk of loss is borne by policyholders through excesses must reasonably balance the interests of the insurer and the reasonable benefit expectations of the policyholder. The figure for your policy is in your schedule.

A tyre and rim plan does not change your comprehensive policy, and your policy does not change the plan. Each has its own terms, claims process and complaint route. Whether a particular wheel loss is a plan matter, a policy matter or neither depends on the wording of both, so read both, and ask your insurer about the policy.

Is tyre and rim cover insurance?

It depends on how the provider has set it up. Ask the plain question: "Is this an insurance policy, and who is the insurer?" The answer decides which rules apply.

• If it is insurance, the Policyholder Protection Rules (Short-term Insurance) apply. That means a cooling-off right (Rule 4), duties on how claims are handled (Rule 17) and access to the National Financial Ombud Scheme.
• If it is not insurance, the Consumer Protection Act 68 of 2008 is the main law that applies. Section 54(1) gives you a right to the performance of services "in a manner and quality that persons are generally entitled to expect", and section 48(1) says a supplier must not offer or supply services on terms that are unfair, unreasonable or unjust.

What if a replacement tyre is faulty?

A tyre supplied under a plan is goods. Under section 56(2) of the Consumer Protection Act, within six months after delivery of goods that fail the standards in section 55, you may return them without penalty and the supplier must, at your direction, repair or replace them or refund the price. If a repair does not fix the problem within three months, or a further defect appears, the supplier must replace the goods or refund the price (s 56(3)). If a service was poorly done, section 54(2) lets you require the supplier to remedy the defect or refund a reasonable portion of the price.

Whether those sections reach a particular plan depends on who supplied what to whom. If the provider says it does not, ask for its reasons in writing.

What should you ask before you agree?

1. Is this insurance or a service plan? Who pays for the repair or replacement?
2. What is the limit for one tyre or rim, and how many claims can I make?
3. What is excluded?
4. What proof do you need, and by when?
5. Must I use your fitment centres?
6. How long is the plan, and does it renew automatically?
7. How do I cancel, and what do I get back?

Question 6 matters: for a fixed-term consumer agreement, section 14(2)(c) and (d) of the Consumer Protection Act requires the supplier to give notice 40 to 80 business days before expiry, and the agreement otherwise continues month-to-month.

What should you check in the paperwork?

Before you accept, ask for the plan schedule and full terms. Check that the details match what you were told: your name, the car's registration and details, the size and type of the tyres and rims, the start date, the length of the term and how the plan ends or renews. If something said on the call is not in the paperwork, ask for it to be added or put in writing.

Keep the documents where you can find them. If damage happens, the plan terms decide what is paid.

Do exclusions and limits have to be pointed out to you?

Yes, where they limit the provider's liability. Section 49(1) of the Consumer Protection Act says a notice or a provision of a consumer agreement that purports to limit the risk or liability of the supplier, to make you assume a risk or liability, to make you indemnify the supplier, or to be an acknowledgement of a fact by you, must be drawn to your attention in the manner the section requires. Under section 49(3) it must be written in plain language. Under section 49(4) it must be drawn to your attention conspicuously, in a form likely to attract the attention of an ordinarily alert consumer, and before you enter into the agreement or are asked to pay. Under section 49(5) you must be given an adequate opportunity to receive and comprehend it.

Section 51(1)(b)(i) adds that a supplier must not make an agreement subject to a term that purports to waive or deprive you of a right under the Act.

In plain terms: an exclusion or limit that matters should not be buried. If the provider reads the limits to you on the call, ask for the same words in writing. If you cannot find an exclusion the provider relies on later in the documents you were given, say so when you complain.

Who answers the judgement questions?

Whether a plan suits your car, your roads and your budget is a judgement call, and Olvian does not make it. The licensed provider who calls you is the person to answer it, and you are free to say no. You do not have to decide on the call. Ask for the written terms first.

Sources

• Policyholder Protection Rules (Short-term Insurance), Government Notice 1433, Government Gazette 41329, 15 December 2017: https://lawlibrary.org.za/akn/za/act/gn/2017/1433/eng@2017-12-15
• Tranche 2 amendments to the Short-term Insurance Policyholder Protection Rules, September 2018 (National Treasury): https://www.treasury.gov.za/twinpeaks/Policyholder%20Protection%20Rules%20and%20Supporting%20Document/Tranche%202%20amendments%20to%20the%20Short-term%20Insurance%20PPRs%20Sept%202018%20(track).pdf
• Consumer Protection Act 68 of 2008, Government Gazette 32186: https://www.gov.za/sites/default/files/32186_467.pdf
• National Financial Ombud Scheme: https://www.nfosa.co.za
• Motor Industry Ombudsman of South Africa: https://www.miosa.co.za
• National Consumer Commission: https://www.thencc.org.za
• Financial Sector Conduct Authority, Financial Consumer page: https://www.fsca.co.za/Financial-Consumer/