A client may have breached an obligation in terms of the policy, but the claim is repudiated, only if we can prove that QuoteMart has been prejudiced by the client’s action or inaction.

Prejudice means that the client has put QuoteMart into a worse financial position.
For Example: A client submits a claim for an accident, which occurred while the insured car, was parked in a parking area. We discover that the car was not in a roadworthy condition at the time of incident as both front tyres were bald.

The client has breached the obligation to ensure that the car is kept in a roadworthy condition. However, the claim will not be repudiated on this basis as the bald tyres did not contribute to the incident. QuoteMart was not prejudiced by the fact that the car was not in a roadworthy condition at the time of the incident.

Example: A client submits a claim for an accident, which occurred when he was unable to brake at a set of traffic lights. The client collided with another car, which had right of way because of the green light. Extensive damage is caused to both cars. The engineer examines the car and finds that the both front tyres are bald.

The obligation to ensure that the car is in a roadworthy condition has again been breached. In this instance the claim will be repudiated on the basis of this breach.