You've done everything right. You reported the accident, collected the other driver's details, submitted a third-party claim to their insurer — and now the insurer is disputing liability, questioning the damage value, or making an offer that doesn't come close to covering your repairs.

This is frustrating, but it's also very common. Here's what your rights are and how to push back effectively.

Why Insurers Dispute Third-Party Liability Claims

When you submit a claim against another driver's policy as an uninsured third party, the insurer has a financial incentive to minimise what they pay. Common tactics include disputing the percentage of their client's fault, arguing that you contributed to the accident (see our guide on the Apportionment of Damages Act), sending their own assessor to produce a lower repair estimate, or simply delaying the process hoping you'll accept a low offer or give up.

None of these tactics are necessarily improper — but many are applied without proper evidential basis. Understanding this dynamic is the first step to responding effectively.

Your Rights as a Third-Party Claimant

As a third party — someone claiming against another person's policy rather than your own — your rights are more limited than those of the insurer's own policyholder. The insurer's primary obligation runs to their client, not to you. However, you still have meaningful rights and options.

• You have the right to request written justification. If the insurer disputes liability or reduces the settlement, ask them in writing to explain exactly what evidence supports their position. Insurers acting in good faith must be able to substantiate their decisions.
• You have the right to present your own evidence. Independent repair quotes, scene photographs, dashcam footage, witness statements, and the police report all counter unsupported insurer assessments. The stronger your evidence, the weaker their position. Our full evidence guide covers exactly what to collect and why.
• You have the right to get your own repair assessment. If the insurer's assessor produces a lower figure than your independent quotes, you are not obliged to accept it. Understanding how the damage assessment process works puts you in a much stronger negotiating position.
• You have the right to pursue the driver personally. Even if the insurer disputes its client's liability, you can still sue the driver personally for your damages. The insurer would typically then step in to defend — but the legal pressure is real and often breaks a dispute open.

If the Insurer Is Acting Unreasonably: The NFO

Since 1 March 2024, short-term insurance disputes in South Africa are handled by the National Financial Ombud Scheme (NFO), which replaced the former OSTI. The NFO provides free, independent mediation between consumers and insurers.

As a third-party claimant, your direct access to the NFO is more limited than a policyholder's — but the insurer's own client can lodge a complaint about their insurer's conduct, and the NFO's involvement often prompts more reasonable insurer behaviour. If the insurer's conduct toward you involves clear bad faith or unreasonable delay, escalation to the NFO or to the courts becomes the appropriate next step. See our detailed guide on how to complain to the NFO in South Africa.

If Negotiations Fail: Pursue the Driver Personally

If the insurer's position is clearly unjustified and negotiations have reached a dead end, you can issue a letter of demand to the driver themselves and proceed to court if necessary. The insurer will typically defend the matter, but your claim is legally against the driver — and a court will assess the evidence impartially rather than from the insurer's perspective.

For claims under R20,000 this means the Small Claims Court. For larger amounts, the Magistrate's Court. In both cases, the quality of your evidence is what determines the outcome.

Act Before Your Time Limit Expires

Do not let insurer delays run down your three-year prescription clock. If a dispute is dragging on unresolved, make sure formal steps — a letter of demand or court summons — are taken before the three-year deadline. Read our guide on car damage claim time limits in South Africa to understand how prescription works.

How Professional Help Changes the Dynamic

Insurers negotiate third-party disputes every day. Most uninsured claimants don't. Having a professional in your corner — one who knows how insurers apply apportionment arguments, what evidence counters them, and when escalation is warranted — significantly changes the outcome of these negotiations.

At MyLawSA, we handle insurer disputes on behalf of uninsured accident victims. We know how to challenge unsupported liability disputes and get fair settlements across the line. We work on a No Success, No Fee basis — if we don't recover money for you, you pay nothing.

Is an insurer disputing your claim without justification?
Contact MyLawSA for a free assessment. Tell us what happened and what the insurer is saying — we'll advise you on whether their position holds up and what your best route to recovery is.

Useful links:
National Financial Ombud Scheme (NFO): www.nfosa.co.za | 0860 800 900
Apportionment of Damages Act 34 of 1956: gov.za
National Road Traffic Act 93 of 1996: gov.za

This article is for informational purposes only and does not constitute legal advice. Always consult a qualified professional for advice specific to your situation.