R5.8b in insurance claims paid to businesses hit by July unrest

The South African Special Risk Insurance Association (Sasria) has, to date, paid out R5.8b in claims to businesses that suffered damages during the unrest in July in KwaZulu-Natal and Gauteng.

This was revealed by the National Treasury and Sasria in a joint statement. The organisations said this would address the damages incurred.

In the wake of the unprecedented chain of events that saw businesses looted and razed, government unveiled various interventions to support the affected establishments.

Sasria has made important business interventions, namely capital and reinsurance restructure, and government, as the sole shareholder, has committed to stand in as the entity’s insurer of last resort. Government committed to enable Sasria to meet all of its policyholder commitments.

In the statement, Sasria’s managing director, Cedric Masondo said, “Our discussions with National Treasury are in line with the desired determination of the best medium that can inject capital, as we look at how to be future-proof ready and acknowledge the lessons learnt during the unfortunate unrest in July.”

The National Treasury has indicated that R3.9b will be disbursed to Sasria, following the conclusion of the recently tabled Special Appropriation Bill, currently being processed by parliament. This was intended to help Sasria meet its obligations until the end of the current financial year, 31 March 2022.