Claims adjuster Insurance Claims Africa (ICA) recommends state insurer SA Special Risk Insurance Association (Sasria) urgently prepay 30% of their insured amount to riot-related beneficiaries.
ICA said this would corporations helping with tight budgets to get back on their feet as quickly as possible and avoid impending cuts.
ICA represents a number of applicants who represent the largest volume of applications submitted to Sasria after the recent unrest in KwaZulu-Natal and Gauteng.
Mike Gaines, chairman of ICA, said plaintiffs were in limbo, desperate for cash to pay employees, resume business, replenish inventory and damaged too repair
“We know from our experience with Covid-19 business interruption claims that these interim payments from insurers have been a lifesaver for many companies, wä While they waited for the complex and lengthy claims settlement business to proceed.
“It will be the same for these riot-related claims,” said Gaines.
He said Sasria had contacted the National Treasury adept at addressing a capital shortage required to cover the estimated expected claims of R20 to R25bn and again it will take time to resolve.
“Sasria is a good one “Well-run company that we have great confidence in, but has never faced claims of this magnitude and complexity before,” he said.
Gaines said paying 30% of the sum insured would be an interim payment a safe option for Sasria and would not jeopardize or jeopardize the company’s long-term sustainability.
“Sasria has authorized insurers to pay claims up to R1 million and some of those claims are paid out. But it’s not enough, it isn’t fast enough, and it harms the larger applicants, many of whom run huge retail, manufacturing, and food production companies that are in dire need of substantial injections of cash.
“In fact, we are concerned about that this without major, urgent interim payments could have an impact on food security in the country and will certainly have a negative impact on our fragile economy. ”Gaines said she warned customers from the start that the damage process was in time And that they should manage their cash flow carefully.
“However, this will only be possible for a limited time and even the bigger companies are struggling now. We have offered Sasria help and we aim to provide whatever we can Wise to be part of the solution. Claims will take time to settle, so interim payments will be critical. “