Streaming issues? Report here
Lester Kieviet 2019 1500 BW 2 Lester Kieviet 2019 1500 BW 2
The Morning Review with Lester Kiewit
09:00 - 12:00
volume_up
volume_mute

Up Next: The Midday Report with Mandy Wiener
See full line-up
The Morning Review with Lester Kiewit
09:00 - 12:00
Home
arrow_forward
Business
fiber_manual_record
Local
fiber_manual_record
Lifestyle

Unrest insurance: 'Sasria won't pay if argument wins that it's pure looting'

13 July 2021 8:43 PM
Tags:
The Money Show
Looting
Bruce Whitfield
Insurance
Insurance claims
Public violence
insurance cover
Insurance Claims Africa
Ryan Woolley
business insurance
ICA
civil unrest
Sasria
political unrest
criminal acts

'Judging by claims the damage so far is about R10 billion.' The Money Show interviews Ryan Woolley, CEO of Insurance Claims Africa

South Africans watched in horror as further scenes of looting and vandalism took place in parts of KwaZulu-Natal and Gauteng on Tuesday.

While big businesses would have insurance cover, some of the marginal outfits destroyed in the violence would have belonged to people who did not have insurance, comments Bruce Whitfield.

He talks to Ryan Woolley, CEO of consulting firm Insurance Claims Africa (ICA).

Police arrest suspected looters following riots in Alexandra on 12 July 2021. Picture: Boikhutso Ntsoko/Eyewitness News

According to the claims that have come in says Woolley, he'd estimate the cost of the damage at about R10 billion so far.

RELATED: Untold damage due to civil unrest – only one insurer covers it

State-owned Sasria is the only insurer in South Africa that provides cover against risks such as civil unrest.

This cover is provided in most commercial insurance policies.

In general, there is cover. There are commercial policies that clients would have taken for their property, buildings, content, stock and business interruption.

Ryan Woolley, CEO - Insurance Claims Africa

Off the back of that, if this is deemed a political riot, strike or public disorder then essentially the government insurer Sasria will step in.

Ryan Woolley, CEO - Insurance Claims Africa

Most policies have Sasria added to them, which means that it is a risk that is covered in South Africa.

Ryan Woolley, CEO - Insurance Claims Africa

Who decides whether a business client's claim relating to the current riots falls into the correct risk category for a Sasria payout?

It's the lawyers [who decide], like the ones we've been fighting in the Covid claims - those are the lawyers we're going to be dealing with once again.

Ryan Woolley, CEO - Insurance Claims Africa

They are the guys who're going to be seeing whether the commercial insurer needs to pay or whether they're going to advice Sasria to pay.

Ryan Woolley, CEO - Insurance Claims Africa

That's when it gets difficult. Sasria won't pay if it's pure looting, just theft and criminal. That's the angle they will probably take and the commercial insurer will obviously push the riot/strike/public disorder route.

Ryan Woolley, CEO - Insurance Claims Africa

Whichever way it goes, Woolley notes, the volume of claims (including Covid claims) will slow down the payout process.

Listen to the explanation on The Money Show:




13 July 2021 8:43 PM
Tags:
The Money Show
Looting
Bruce Whitfield
Insurance
Insurance claims
Public violence
insurance cover
Insurance Claims Africa
Ryan Woolley
business insurance
ICA
civil unrest
Sasria
political unrest
criminal acts

More from Business

More from Local

More from Lifestyle