Counting the cost of civil unrest

This month saw civil unrest in parts of the country shattering thousands of South Africans’ lives. Many people were arrested, and dozens killed or injured in rioting that has swept the country.

Besides loss of life and injuries sustained, there was also much damage to property and businesses. This has left home and business owners wondering if their insurance policies will cover the losses.

While many may have insurance with the likes of Old Mutual Group and Santam, it’s actually the State that foots the bulk of the bill. Here’s why:

What is Sasria?

Sasria is a state owned enterprise (SOE) with around R8.5 billion in assets under management according to a report. It was created shortly after the Soweto uprising in 1976 where 176 people died protesting against South Africa’s apartheid government.

Many riots and demonstrations have subsequently followed resulting in mainstream insurers refusing to cover the bill for any damages. The government then created Sasria to “self-insure” against riot risk.

‘What many homeowners don’t know is that SASRIA (the South African Special Risk Insurance Association) exists for this exact purpose,’ says Bradley Du Chenne, CEO of insurance quote comparison platform, Hippo.co.za.

‘Sasria provides special cover to South African individuals and businesses against risks like civil commotion, public disorder, strikes, riots and terrorism. In fact, South Africa is one of the few countries in the world that provides this insurance.’

How do you know if you’re covered?

Sasria doesn’t do business directly with the public. However, its cover is generally included in most commercial and consumer short-term insurance policies.

Du Chenne explains: ‘You may not have heard about Sasria until this week, but that does not necessarily mean you don’t have Sasria cover. If you have short-term insurance on your property or vehicle, you may have Sasria cover included as part of your underlying insurance policy.’

How can you claim?

There were some rumours that Sasria didn’t have enough capital to pay out in the event of a major riot such as the ones we’ve experienced recently. However, the managing dirctor of Sasria, Cedric Masondo, has since made assurances in the media that the entity has sufficient cash reserves.

So, if you have Sasria cover, it’s just a case of speaking to your insurer. ‘All the insurance companies on the hippo.co.za platform offer SASRIA cover, but you should still check that it was selected when you agreed to the underlying policy.

‘An insurer may not automatically include it with their car, buildings, home contents or business insurance, so you would have to request it when you take out the policy,’ explains Du Chenne.

To get money for damages to your property or business just submit your claim as you normally would with your insurer. The insurer concerned will then report your claim to Sasria on your behalf. You should also report the incident to the police as soon as possible to get a case number.

Don’t delay on making a claim if you are eligible. You need to claim or notify your insurance company of the intention to claim under the policy within 30 days from the date of the damage.

Some insurers have already pledged to fast-track applications. Ricardo Coetzee, head of Auto & General Insurance, says: ‘Due to the sheer number of claims received by Sasria, it may take some time for Sasria to finalise these claims.

‘While customers wait for their claim outcome from Sasria, they will no doubt face much uncertainty and we are concerned that, for businesses, this will result in business closures and job losses. To assist, once a valid Sasria related claim has been captured by Auto & General, we will make interim payments to help our customers get back on their feet.’

Du Chenne adds: ‘If you do not have this cover, be sure to include it as soon as you can. Take note that claims will only be valid if the cover was activated before the incident occurred.’