On his way home from work Brian is involved in a collision. He reports the accident to his insurance company and they inform him that they choose to repair his car rather than to compensate him. He also has to pay R1 000 because he bears a proportion of the loss himself. The insurance company also informs him that he has no choice but to comply, as these terms were agreed to in the insurance contract he concluded with the company two years before. Which ONE of the following statements reflects Brian's legal position CORRECTLY?

Question

Answer

There is no principle in insurance law that allows the insurance company to have the insured pay a certain amount in order to bear a portion of the loss himself.

Answer

If the parties to an insurance contract agreed thereto, the insurance company may have the insured pay a certain amount in order to bear a portion of the loss himself and may  reserve the right to have the risk-object repaired, instead of compensating the insured.

Answer

There is no principle in insurance law that allows the insurance company to reserve the right to decide to have the risk-object repaired, instead of compensating the insured.

Answer

Even if the parties to the insurance contract agreed, the insurance company may not legally oblige Brian to have the car repaired instead of compensating him, nor have him pay a certain amount in order to bear a portion of the loss himself.

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On his way home from work Brian is involved in a collision. He reports the accid...

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