Are you covered in the event of protest action?

This past week saw taxi violence and service delivery protests reaching a peak. Unfortunately in these types of situations, entire communities are affected. From potential motor vehicle damage to business interruptions, one can stand to lose quite a bit. But are your possessions and assets covered in the event of protest action?

You can be. But only with specific cover. According to PSG Wealth this serves as a reminder of the importance of Sasria cover as part of your insurance policy.

What is Sasria cover?

“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,” explained Bertus Visser, chief executive of distribution for PSG Insure (PSG).

Sasria does not conduct business directly with the public. Rather, non-mandated intermediaries write cover and collect premiums on Sasria’s behalf.

This cover is offered in various classes including:

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 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.

Sasria covers property situated in South Africa and South African waters. Sasria also has a reciprocal agreement with NASRIA (a Sasria-like institution in Namibia), whereby if the insured has a Sasria policy and is temporally in Namibia, the policy will cover Sasria-related events in Namibia (and vice versa).

Motor

This cover applies to motorcars, light delivery vehicles, commercial vehicles, motor fleets, motor traders, mobile plants, taxis, bus rapid transport (BRT) vehicles and trailers. The Sasria motor policy is a standalone policy and does not attach to the terms and conditions of an underlying policy.

How much does it cost?

“Interestingly, it only adds a little to your monthly premium. On vehicles it is quite simple - there is a fixed premium per month or annum. For example on private motor cars it is R2 per month, taxis R4.50 per month, etc. When it comes to the material damage sections of the policy –for domestic fire it is R3 per month and commercial fire R5 per month,” he highlighted.

The Sasria website has all the rates, which remain the same throughout the industry.

How can you apply for it? 

It is available through any non-mandated intermediary and the broker market obtains this cover through the insurers (non-mandated intermediary). Visser further added that most insurance companies are non-mandated intermediaries for Sasria. Some examples include Santam, Hollard, Old Mutual Insure and Bryte Insurance Company.

How much are you covered for?

“The sum insured / cover is normally followed by the value you are insured for on your underlying policy. This basically means that you will be insured for the same value as stipulated in your policy schedule. Always keep in mind that terms and conditions will apply,” said Visser.

It is no longer compulsory to have this cover but it is still recommended that you do have it. “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 protestors - such damage would not be covered by the standard underlying policy of your insurer,” Visser stated.

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, Visser believes.

“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,” PSG concluded.

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