(Archive photo)
Sasria, the state-owned insurer against, among other things, riots, has informed its customers that due to the “unprecedented levels of load shedding” it will no longer offer cover for damage related to a complete collapse of the national power grid.
In a circular to customers that Rhewal reviewed, Sasria says that customers can no longer claim for any loss, damage, cost or expense directly or indirectly related to the collapse of the power grid.
This includes any riot, strike or public disturbance directly or indirectly caused by, resulting from, in any way or in any way contributed to by, or related to, the disintegrating power grid.
The new provision also applies to direct or indirect losses regarding any delivery of public utilities affected by such collapse. This includes, but is not limited to, the disruption of water, telecommunications or sewage systems. It also includes any other direct or consequential or indirect losses such as the rotting of food or other perishable items.
The new provisions come into force on 1 June.
Archive photo for illustration purposes only.
Rhewal it in March report that several major insurance companies have already indicated, under pressure from their reinsurers, that they will not accept any insurance claims in the event of a total collapse of the national power grid.
Old Mutual Insure is one of the companies that first indicated that it had “no other option” but to scrap cover for this. Other insurers such as Hollard, Momentum Insure, Naked Insurance and Santam made the same announcement shortly afterwards.
Sasria says that the new provisions will not apply to load shedding.
Power grid collapse vs. load shedding
According to Sasria, the “collapse of the power grid” means the total or partial interruption of, interference with, interruption of or suspension of any electricity supply, by any means and from any source.
“Outage” means the deliberate, total or partial, withholding, curtailment or limitation of power supply (from any source).
