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Insurers express confidence in ability to assist insured looted businesses

Insurers express confidence in ability to assist insured looted businesses
14-07-21 / Staff Writer

Insurers confident in ability to assist insured looted businesses

Johannesburg - The South African Insurance Association (SAIA) calls on all policyholders who have suffered losses or damage to property and or business operations which has been estimated to be in the billions to reach out to their respective insurance companies or brokers/financial intermediaries for assistance. 

The Association condemns acts of criminality and vandalism and welcomed the call by President Ramaphosa’s during his addresses to the nation on Sunday and Monday evenings, and subsequent security interventions, to ensure perpetrators are brought to book.  SAIA supports decisive and effective law enforcement actions by Government to bring the current situation under control.

The SA Special Risks Insurance Association (Sasria) , a state-owned enterprise and a SAIA member, is the only insurer in South Africa that provides cover for any damage caused during politically motivated riot/strike/civil or public commotion, has already given assurances to the insurance agents and brokers that it is well capitalised and has adequate reinsurance programmes with “A” rated reinsurers. The company has said it is confident that it will be able to provide for the anticipated claims. 

The Sasria model is a good example of how the public and private sectors can work together to provide solutions to individuals and businesses in South Africa. It has already proactively requested that Loss Adjusters and Assessors be appointed within the mandates given to insurers and has also appointed Loss Adjusting companies to collate all necessary information to expedite the claims that run into billions of Rands. The intention of having an insurance policy is to place you in the same financial position you were in before the incurrence of the said losses and therefore assures that you remain financially sustainable – whether it is from a personal or business perspective.

We urge policyholders to ensure that all relevant information for claims registration is provided at the point of registering the claim with their insurer or financial intermediary. Insurers are agents of Sasria and most of them collect prescribed premiums from Sasria for the covers afforded with respective policyholders. The said premium is then reconciled with Sasria.  All Sasria related incidents are reported to Sasria through insurers, to whom policyholders will lodge claims with. 

The non-life insurance industry hopes that these riots will come to an end sooner rather than later, and would like to continue to urge businesses, motorists, and the public to exercise extreme caution and prioritise safety by considering other safer alternatives. Motorists are also urged to study their routes before departure and factor in alternative routes if they are traveling into or around impacted areas.

After a disaster, one wants to get back to normal as soon as possible, and there is nothing the insurance industry will want more than that. It is in this spirit that our member insurance companies and the broker fraternity, together with Sasria, will be working tirelessly to ensure that policyholders are assisted to get back on their feet as soon as possible.

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