Third-Party Liability Insurance Laws: Balancing Policyholder Interests and Legal Obligations Across Jurisdictions

Abstract

Background:
Third-party liability insurance laws are critical in protecting victims and ensuring fairness between insurers and policyholders. However, jurisdictions vary widely in their approach to regulation and enforcement.

Objective:
This study investigates the differences in third-party liability insurance laws in the United States and South Africa, highlighting key challenges and areas of potential improvement.

Methodology:
A comparative legal analysis was performed using statutory reviews, case law, and expert interviews from both countries.

Findings:
The United States demonstrates a highly litigative approach, leading to extensive coverage but increased litigation costs. South Africa, meanwhile, faces challenges in enforcement, with gaps in addressing uninsured drivers. The findings underscore the importance of developing consistent global legal principles.