Sasria to get R3.9bn from Treasury to cover July unrest insurance claims

Nearly three months after the July riots, which saw businesses in KwaZulu-Natal and Gauteng vandalised and looted, the treasury announced that R3.9-billion will be disbursed to the South African Special Risk Insurance Association (Sasria) to cover claims. 

This comes after Sasria briefed members of parliament’s standing committee on appropriations last month on its need for a capital injection from the government to cover any shortfalls in paying out insurance claims.

Sasria covers claims resulting from riots, civil unrest and terrorism and vandalism caused by public disorder.

“The treasury has indicated that R3.9-billion will be disbursed to Sasria following the conclusion of the recently tabled Special Appropriation Bill parliamentary processes,” read a joint statement from Sasria and the treasury on Monday. “This is intended to assist Sasria in meeting its obligations until the end of the current financial year … on 31 March 2022.”

The state-owned insurer has been inundated by claims from business owners whose livelihoods were harmed by the looting and destruction, which initially started as a protest against former president Jacob Zuma’s incarceration.

Sasria managing director Cedric Masondo has previously said claims linked to the July violence could amount to between R20-billion and R25-billion. 

The government, as the sole shareholder in the insurance company, has committed to standing in as Sasria’s insurer of last resort so that it meets its policyholder commitments.  

Masondo said on Monday that discussions with the treasury were focused on the best medium to inject capital “as we look at how to be future-proof ready and acknowledge the lessons learnt during the unfortunate unrest in July”.

The treasury said: “The final additional support is dependent on how swiftly Sasria can finalise the total claim amounts. It is expected that the additional support which has been flagged in the recent special appropriation will be concretised in the 2022 budget,” it added.

Sasria and the treasury said almost 100% of claims notifications had been received and claims totalling more than R5.8-billion had already been paid out.

The insurer said that after discussions with industry partners, it had been agreed that damaged property would be rebuilt, rather than cash-in-lieu payments.

Anathi Madubela is an Adamela Trust business reporter at the Mail & Guardian.

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Anathi Madubela
Anathi Madubela is a business journalist with a keen interest in the retail sector.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

How spies shape South Africa’s political path

From Mbeki to Zuma to Ramaphosa, the facts and fictions of the intelligence networks have shadowed political players and settled power struggles

I’m just a lawyer going to court, says attorney on...

The Mthatha attorney is angered by a tweet alleging he sways the high court and the Judicial Services Commission

Death of Zimbabwe’s funeral business

Burial societies and companies have collapsed and people can no longer afford decent burials for their family members

Art and big business: the best of bedfellows

Corporates’ collections are kept relevant by sharing the works with the public and supporting artists
Advertising

press releases

Loading latest Press Releases…
×