Billions Worth Of Insurance Claims Outstanding From July Unrest

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The impact of the July 2021 riots in KwaZulu-Natal and parts of Gauteng continue to be felt in South Africa. This as some businesses have not yet received their insurance payouts which directly impacts their ability to recover.

 


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The South African Special Risk Insurance Association (Sasria) is the sole insurer in the country that provides special risk cover to individuals and businesses that own assets in South Africa. These special risk includes strikes, riots, and terrorism.

Despite Sasria receiving a R22 billion cash injection from National Treasury to assist them in dealing with claims, not all claims have been settled. To date, the insurer paid R22 billion in claims related to the July unrest. However this only amounts to around 73% of all claims which totaled around R36 billion

In a statement the insurer revealed that some claims have not been finalised after claimants were not able to provide accurate information which prevented them from quantifying the claims.

The insurer said, “Sasria believes adequate time has been given so that these claims can be finalised, with some clients failing to provide critical information required. It’s almost a year since the July unrest and like the entire insurance industry, it would like to close most claims emanating from the unrest.”

Muzi Dladla, Executive Manager for Stakeholder Relations at Sasria has however assured clients that they are not absolving themselves from settling these claims but the insurer will no longer actively pursue these claims.

He added that Sasria does have the funding needed to settle claims as they come through the door of the insurer.

“We are having conversations with National Treasury but it is not in so far as solvency or liquidity. It is more to look at scenario planning for the future should we have another event of this magnitude” concluded Dladla.

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