Steep rise in Sasria insurance premiums expected in February

Free State Agriculture (FSA) has expressed serious concern about a drastic increase in the state-owned South African Special Risk Insurance Association’s (Sasria) tariffs on heavy commercial vehicles expected to come into effect on 1 February. This included insurance on agricultural equipment such as tractors, harvesters and self-propelled sprayers.

Francois Wilken, president of FSA, said indications were that the increase could be attributed to the extensive damage to trucks during the civil unrest in KwaZulu-Natal and Gauteng during July 2021.

“The agriculture sector, which has already been exposed to significant economic challenges, especially in the Free State, will simply not be able to afford the [new] rates. According to correspondence [received from] Sasria agents, the premium for an insured tractor will go up from

R52,61 [per month] in 2021 to R996,17 in 2022. This constitutes an increase of [almost 1 800%],” he added.

FSA said in a statement that the tariff increases had been communicated in a letter to Sasria’s agents and intermediaries.

According to the Sasria price directive, the monthly premium for a harvester would increase from R87,88 in 2021 to R1 613,86 in 2022, from R78,91 to R1 469,93 for a self-propelled sprayer, and from R30,06 to R552,10 for a planter.

Wilken said if the rationale behind the extensive hike was based on the damage suffered to commercial trucks transporting cargo during the civil unrest in July, the increases applicable to agricultural equipment were unjustified, as the sector was seldom exposed to such types of risk.

He added that it simply did not make sense, and that the classification of agricultural equipment needed to be reconsidered.

Gernie Botha, legal adviser to FSA, told Farmer’s Weekly that high-level talks between Sasria, commodity organisations and insurers regarding the matter were ongoing.

Attempts by Farmer’s Weekly to obtain comment from Sasria on the issue were unsuccessful. – Annelie Coleman

ANNELIE COLEMAN Farmers‘ organisations have expressed alarm at the very steep increases in insurance premiums for farming implements that are expected to be introduced by Sasria in February.