The recall of the Ford Kuga in South Africa, due to the clear increased fire risk posed, is certainly good news if you own one of these vehicles.

This event is also a good example of the application of the general condition of reasonable care, which is present in virtually all insurance contracts. 

This condition essentially states that you must take all reasonable care to avoid loss as insured by your policy. To put it in more simple terms, your insurers require you to act as if though you don’t have insurance cover and to do everything possible, an uninsured person would do, to avoid loss (the financial costs that arise out of you taking steps to avoid loss are not covered).

In the case of Ford Kuga owners, taking reasonable care to avoid loss would include taking the vehicle to Ford to be inspected and declared safe to drive by Ford – this is something the reasonable person would normally do to avoid loss, whether insured or not. 

The condition of reasonable care ensures that insurers don’t pay claims that could have been avoided, had the policyholder taken steps to avoid loss i.e. acted, at all times, as though they were not insured.

Please contact Chadwicks should you have queries in this regard.