Learn the lingo: Ten terms you need to know
Legal jargon can be baffling at times. Why not learn the lingo and make sure you are clued up the next time these terms appear in your life.
People often get into situations where legal or insurance jargon is thrown around and they have no idea what people are talking about. With these ten legal terms, you can begin to build your arsenal of legal knowledge.
1. Comprehensive cover
Did you know that there are three types of car insurance to choose from? Comprehensive cover is for damage to your vehicle, as well as for damage you may have caused to someone else’s property or vehicle. Part of this, third party, fire and theft cover is for damage to another person’s property or vehicle, or damage to your vehicle due to fire or theft.
2. Discrimination
You’ve probably heard the term discrimination pop up many times. Discrimination is when you are given more or less privileges than other employees based on your race, sex, age, religion or similar reasons.
3. Beneficiary
Did you know there is a difference between a beneficiary and a dependent? A beneficiary is the person(s) you’ve nominated to receive benefits when you die. A dependent is someone who relies on you financially.
4. Consumer
If a product or service is marketed towards you (e.g. you see an ad for a product or service), buy something from someone, or pay for a service, you are considered a consumer.
5. Consumer Protection Act
The Consumer Protection Act, or CPA, is there to protect the rights of consumers when buying goods or paying for services.
6. TOUT
A “tout” is a person that convinces others to lodge false claims to the RAF (Road Accident Fund). They also defraud unsuspecting members of the public by using their personal information in these transactions.
7. RAF (Road Accident Fund)
The RAF is a government body set up to pay compensation to either people injured by negligent driving on the roads, or the dependents of people killed as a result of negligent driving on the roads.
8. Severance Pay
Severance pay is the compensation given to employees when they are retrenched. This is calculated at a minimum of one week’s salary for each completed year of continuous service with the same employer. It is important to note that workers are not entitled to severance pay if they unreasonably refuse alternative employment with the same employer or with another employer. In addition to severance pay, workers are entitled to any other amounts that they are legally entitled to e.g. outstanding salaries, bonus, leave.
9. Retrenchment
Retrenchment is when an employee is dismissed due to operational requirements, for instance when the employer downsizes.
10. Excess
The amount an insurance company requires you to pay over and beyond what they have already covered.
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