South African insurance assessors are counting the costs of the damage caused by the pre-Christmas deluge that swept across the drought-ravaged southern Cape on Wednesday, flooding towns, cutting power supplies and washing away roads.
Santam, South Africa’s largest short-term insurer, said on Thursday that early indications are for a ”catastrophe” rating. But, it says, it is fully prepared and all the risks have already been accounted for through its reinsurance programme.
In some areas, this was the most rain measured in a single day in December since the 1880s. Caravans and houses were flooded, and electricity and water supplies cut, plunging holiday-makers into chaos and darkness.
As the floodwater starts receding and authorities begin mopping up, the damage that could amount to millions is being assessed.
Santam’s Kobus van Rensburg said everything possible is being done to help its clients enjoy their holidays. Where regional businesses and restaurants are unable to trade, loss-of-profit claims will be processed.
”In the most popular coastal holiday towns like Knysna and Mossel Bay, Christmas and holiday fare in restaurants in fridges and freezers will be spoilt due to electricity cuts and the inability of restaurant guests to get to their premises.
”Our team of assessors and claims processors will do our utmost to make sure they are compensated wherever it is in our power.”
He said the Santam team will do its best to process claims very fast so that repairs can be made to caravans and holiday homes covered by Santam, in time for people still to enjoy their holidays.
Van Rensburg says the impact of a natural disaster can be limited by adopting the right approach to short-term insurance and by managing it correctly.
He says natural disasters — such as flooding — are highly unpredictable and people should always be prepared and take all possible precautions to minimise damage to property and possessions. — I-Net Bridge