South Africa, a country with a multi-faceted history and diverse social challenges, has taken significant legislative steps in recent decades to ensure the safety and protection of its citizens. 2024 is an election year in South Africa, so an increased risk level of volatility is to be expected. In particular, the state insurer SASRIA plays a crucial role in the insurance of damage and accidents caused by political or labour violence. This article examines the legal provisions governing insurance cover in such cases and takes a look at the function and significance of SASRIA.
Legal basis
According to South African law, damage and accidents caused by political or labour violence are primarily covered by the state insurer SASRIA. This cover is essential to protect citizens and businesses from the financial impact of such events. The legislation aims to create a more stable and secure environment while minimising the economic burden on individuals and businesses.
Function of SASRIA
SASRIA, the South African Special Risks Insurance Association, was established to provide a specialised form of insurance that goes beyond conventional insurance. The insurance of political unrest, riots, strikes and similar events falls under SASRIA’s remit. The insurer plays a key role in ensuring the stability of the country and minimising financial risks for citizens.
How SASRIA impacts on insurance
It is legislated that any such risk must first be insured through SASRIA, all Property and BI policies in South Africa exclude cover for this risk. This will not only apply to local policies but even if there is a global PD/BI policy in place that would include such risks internationally it will not be able to respond to any such loss in South Africa. Bearing in mind that this impacts on property damage/loss in the broadest sense, even where the property falls under the auspices of a Marine policy, once the property enters the SA jurisdiction any such coverage would cease and SASRIA would need to be purchased.
Who is covered by the insurance?
SASRIA’s insurance applies not only to individuals, but also to companies and organisations affected by political or labour violence. This includes damage to property and business interruption. The broad applicability of the insurance emphasises the importance of SASRIA as a key player in the South African insurance market.
Challenges and benefits
Although insurance through SASRIA is an important safety measure, there are also challenges, particularly with regard to gaps in cover and the potential bureaucratic burden in the event of a claim. Nevertheless, the benefits outweigh the challenges, as SASRIA provides a stable mechanism to mitigate the financial impact of political and labour unrest.
Conclusion
The legal requirement that claims and accidents following political or labour violence in South Africa must be insured primarily through SASRIA underlines the country’s desire to ensure the safety of its citizens and promote economic stability. SASRIA plays a crucial role as a state insurer and ensures that financial risks are spread across a broad base in times of unrest and political uncertainty.
