Fin24 reports that state-owned special risk insurer Sasria has withdrawn circulars announcing that it would no longer provide cover for damage to property caused during riots and protests in the event of an electricity grid collapse.
At the end of last month, Sasria issued circulars announcing that it would not indemnify people and businesses from "any loss, damage, cost or expense, directly or indirectly caused by, arising out of, in any way or to any extent contributed to by, or in connection with electricity grid failure". This exclusion applied to "any riot, strike or public disorder (including civil commotion, labour disturbances or lock-outs)" that are directly or indirectly caused by the grid failure. This would have taken effect from the start of June. But on Friday, Sasria withdrew the circular. It indicated: “Various industry stakeholders have brought to our attention the insufficiency in respect of the implementation period stipulated in the circulars and this has resulted in an undue and inadvertent difficulty for the affected parties.” In recent months, SA's big short-term insurers have also pulled, or plan to remove, grid failure cover from their policies this year. They will also not cover problems arising from disruptions to water supply, telecoms systems or sewerage, and losses from rotting food. If the grid collapsed, it would take Eskom, in a best-case scenario, around a week to restore power, although several weeks are more likely. There would be a cascade of problems affecting supply chains, transport, banking, fuel supply, food security, and personal and business security. Protests and riots are also anticipated.
- Read the full original of the report in the above regard compiled by Ahmed Areff at Fin24
Get other news reports at the SA Labour News home page