Don’t get caught short on cover
SERVICE DELIVERY PROTESTS HIGHLIGHT THE IMPORTANCE OF SASRIA COVER – DO YOU HAVE IT? ASKS BERTUS VISSER
TAXI violence and recent service delivery protests are a reminder of the importance of South African Special Risk Insurance Association (Sasria) cover as part of your insurance policy.
Once a default of short-term insurance policies, Sasria SOC Limited, a state-owned entity, provides specialised short-term insurance cover against the loss of, or damage to, property resulting from civil commotion, public disorder, strikes, riots and terrorism.
Sasria does not conduct business directly with the public. Rather, non-mandated intermediaries write cover and collect premiums on Sasria’s behalf.
As it is no longer compulsory to have, today’s environment – with increasing strikes and unrest as a result of challenging economic conditions – makes it vitally important to ensure you are well aware of Sasria cover.
The Sasria monthly premium only adds a little to your total monthly premium.
The basic reason that Sasria cover is no longer compulsory is due to the changing regulatory environment, specifically Treating Customers Fairly (TCF). The automatic inclusion of this cover in policies was considered to be contrary to the principle of giving customers choice. However, in PSG’S opinion, the importance of this cover should be highlighted.
Consider the fact that vehicles, homes and other personal property could be endangered by a protest or similar event. For example, if your car was parked near a protest area and had been damaged by protesters, such damage would not be covered by the standard underlying policy of your insurer.
MATERIAL DAMAGE
This covers damage to a wide range of personal and commercial assets, and can be applied to all or some of the insured’s property. The following risks form part of this cover:
Business interruptions
While goods are in transit, Sasria cover will not provide for any cover against business interruption. It will, however, cover the goods that are damaged.
Money
Cover for lost or stolen money is also issued under the material damage section.
Construction risk
Sasria’s construction all-risk cover is available for building contract risks, civil contract risks, contract works, contractors (all risks), demolition sites (all risks), erection sites (all risks), plants (all risks) and plant hire.
Motor
This cover applies to motorcars, light delivery vehicles, commercial vehicles, motor fleets, motor traders, mobile plants, taxis, bus rapid transport vehicles and trailers. The Sasria motor policy is a standalone policy and does not attach to the terms and conditions of an underlying policy.
Sasria covers property situated in South Africa and South African waters. Sasria also has a reciprocal agreement with Nasria (a Sasrialike institution in Namibia), whereby if the insured has a Sasria policy and is temporarily in Namibia, the policy will cover Sasria-related events in Namibia (and vice versa). Given the prevailing economic climate and recurring bouts of unrest we urge you to make sure that you discuss Sasria cover with your adviser to make sure you are safe.
Bertus Visser is the chief executive of distribution at PSG Insure.