The Value of Sasria Insurance Cover
As a state-owned company, SASRIA SOC Limited is a short term insurer that provides cover for people and business with assets in South Africa against extraordinary risks. There is no other insurer that provides this kind of cover in South Africa. Their mandate is to provide cover against special risks such as strikes, lockouts, riots, civil commotion, labour disturbance, public disorder and terrorism.
With South Africa’s history of political activism, Sasria was established to provide financial protection for owners of assets including government or public property as well as business and personal property from these kinds of events.
Sasria was established in 1979 in response to the 1976 political protests in South Africa. At the time, the underlying insurance market became reluctant to settle riot claims as the losses from these incidents were enormous and it was difficult to buy reinsurance cover. Initially, the objective was to provide cover for political unrest and riots but over time, the mandate was extended to include cover for public disorder, labour unrests, strikes and other non-political riot mass action.
Sasria used to be compulsory on group schemes but since 1 December 2015 this is no longer the case however, it is still considered an essential and affordable insurance element. Sasria SOC Limited does not deal directly with the public but rather through intermediary underwriters and is available for corporate as well as individual short term insurance.
As we head towards a period when there is a higher likelihood of labour strikes due to final negotiations and disputes, it is important to ensure that your Sasria cover is in place. Even marches or strikes to protest for better conditions, basic services or higher salaries, initially intended to be peaceful, can sometimes get out of hand and lead to costly damage and violence.
It is important to remember that your domestic or business policy usually excludes cover for loss, damage, injury, death, liability or even loss of productivity as a result of unrest, riots or strikes. Therefore, it is important to ensure you have additional cover for such unforeseen events, especially during this time of year.
Fees Must Fall
Since October 2015, we have seen a rise of student protest concerning the Fees Must Fall campaign which has already resulted in R120million worth of claims in 2015 alone. Further student unrest is expected in 2016 and has already resulted in very costly damage to property and vehicles which still needs to be processed by Sasria.
Sasria cover includes:
- Insurance against material damage which includes all elements not covered by the other categories.
- Consequential loss is an additional cover in the business interruption insurance field.
- Contract works and construction plant cover, specific to the engineering industry.
- Its motor policy category covers all motor vehicles types.
- Marine and inland transit category involves specific arrangements made with Sasria as marine insurance normally does offer cover for civil unrest, strikes and riots.
But, it excludes:
- Any looting claims.
- Any claims where inadequate precautions were taken to protect property. Sufficient security measures, fencing, alarms, etc. are required.
- The Sasria coupon incorporates the terms, conditions, exceptions, exclusions and warranties of the underlying policy to which it attaches to, but it does not automatically incorporate the extensions.
- Other exclusions are nuclear, chemical or biological terrorism involving the release (or threat of release) of any nuclear weapon or device, or chemical or biological agent.
For a more comprehensive layout of what Sasria cover includes, please contact your local Garrun broker.
How to qualify for Sasria cover
Sasria is only available in South African and the first requirement is that you must be in possession of a standard business insurance policy. Once this is in place, Sasria will provide additional insurance benefits which will be processed by the primary insurer as soon as a relevant claim has been established.
When citizens are faced with taxing economic conditions, the risk of civil unrest and strikes are more likely and for this reason, it is important to consider Sasria cover for your business or personal effects, where relevant. Speak to your Garrun insurance broker for more information and to assess where you or your business may be vulnerable to such risks.
For more information on SASRIA, go to www.sasria.co.za