Although mining-related earthquakes are an ”industry exclusion”, one insurer has said it will pay claims from Wednesday’s Klerksdorp earthquake because of the ”emotional content” of the event.
”It’s an industry exclusion, but at the same time one must look at the emotional content. We are going to be paying,” said Outsurance spokesperson Trevor Devitt.
He said on Thursday the company has received 70 claims thus far, with more still coming in.
He was unable to give an accurate estimate of the amounts involved but said that claims could run into the hundreds of thousands, and ”possibly millions”.
Mutual and Federal said it has received 80 claims thus far, but could also not put a value to them.
”We’ve taken the view that it’s not proven 100% whether it was mining-related or not,” said Keith Kennedy, general manager for claims at Mutual and Federal.
”Those clients have suffered quite a traumatic experience, so we’ll give them the benefit of the doubt. We don’t want to start getting nitpicky,” he said.
The exact value of the claims will only be available on Monday or Tuesday.
”Nedbank’s homeowner’s insurance does cover mining-related earthquakes, and yes, we have been informed that we will be receiving claims in this regard,” Nedbank insurance MD Andrew Culbert said.
Exact numbers of claims will only be available on Friday morning, he said.
The ombudsman for short-term insurance, Helem van Zyjl, advised people to lodge their claims as soon as possible to see whether they are covered.
”A lot of the policies as far as the building itself is concerned do cover you for earthquakes, but sometimes have an exclusion policy for mining operations,” Van Zyjl said.
If claims are rejected, policy holders should come to the ombudsman as he has the right to compel an insurance company to pay if it provides cover but has rejected a claim, he advised. — Sapa