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Sasria has paid out R5.8bn in July unrest claims so far

It’s set to receive a R3.9bn lifeline from Treasury, and says it will need more capital injections going forward.
Shopping centres and warehouses were targeted during the mass looting and destruction. Image: Siphiwe Sibeko, Reuters

Some businesses that were affected by the unrest and looting in July, largely in KwaZulu-Natal and Gauteng, have already received a total of R5.8 billion worth of insurance payouts from the South African Special Risks Insurance Association (Sasria), the entity said in a joint statement with National Treasury on Monday.

Sasria – which is still processing claims related to the incident – said it will a receive a R3.9 billion cash injection from the National Treasury, which has come on board as Sasria’s insurer of last resort.

The lifeline from Treasury will enable Sasria to honour its commitments to claimants affected by the unrest which shocked the country just over two months ago.

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“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,” the statement said.

Sasria insures businesses and people against strikes, riots and public disorder risks, protecting them against loss or damage incurred as a result of such events.

Insurer needs more support from government

Although the insurer says it remains in a positive financial position and is committed to paying claimants, it will need assistance from government in the future.

“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,” Sasria MD Cedric Masondo said in the statement.

Read: Sapoa welcomes 75% rates rebate for worst riot-damaged properties in Durban

“The final additional support is dependent on how swiftly Sasria can finalise the total claim amounts. It is expected that the additional support which has been flagged in the recent special appropriation will be concretised in the 2022 Budget,” the statement added.

The insurer said it is working on fast-tracking payments below R1 million and aims to settle 80% of claims between R1 million and R30 million by the end of October.

Claims above R30 million will be paid to beneficiaries in instalments, with at least 30% of the total claim in each instance set to be paid out in the next few weeks.

Rebuilding

Meanwhile, Sasria said it will collaborate with industry partners to ensure that damaged properties are rebuilt.

“Sasria has engaged with industry partners and reached an agreement that the damaged properties will rather be rebuilt, than do cash in lieu payments,” the statement said.

The July unrest saw some big shopping centres and warehouses being targeted in the two provinces by mass looting and destruction.

JSE-listed real estate investment trust (Reit) SA Corporate Real Estate was one of the worst affected by the unrest.

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The Reit reported in a Sens statement in September that it is rebuilding its Springfield Value Centre in Durban, estimating that the centre will only resume full operations by October next year.

“Sasria continues to play a key role in the insurance industry. We urge clients to continue and maintain their policies with Sasria and would like to assure them of our determined resilience to maintain our excellent relations,” Masondo said.

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The government has been able to find Billions, to pay for the damages, due to the July unrest. This is a good thing as many businesses are still shut and now will be able to rebuild.

So, why can’t the government then afford a Basic Income Grant! R1268 for the 24 million unemployed South Africans, will bring dignity and hope to South Africans.

It is estimated to cost R180 billion per annum or only 3.6% of GDP. The benefits will include lower crime levels, less malnutrition and will provide opportunities for the unemployed, to pursue entrepreneurial activities or furthering their education.

Ignoring the unemployed in South Africa, has not worked so far, as the unrest in July proved. We need to try something different. Government needs to be proactive and not reactive.

The ANC actively creates more unemployed. This ANC faction fight cost how many MORE jobs?

Ge Effy — Up early this morning hey.
Thought for you:
Socialists do not understand economics. If they did they would not be socialists ne !!

Early RSA time Casper : this little Trolley is not in RSA nor an EFF member ,simply a stirrer .

I disagree with your figure of R1268 this about $84… Where is the dignity in that ? All whilst the state provides welfare services such as hospitals, schooling et cetera…

The real solution is to cut all state expense so that only Administration, Law & Order and debt repayment, with the balance being given back to every single person above the age of 18 regardless of employment status.

This roughly equates R2,604 per person for 40million people. It’s not much but it is a start, the target should be R6,750 per person ($450xR15).

For that to happen we would need to create a live Blockchain transactional tax so that the taxes are collected in real time, whilst it also means everyone pays. 19% + 1% is a the medium required, the one % being for the debt reconciliation to all citizen and the state and pair over 99 years, whilst the 19% is broken in to 5% state administration & law enforcement and remain balance for UBI.

I understand this is an extreme radical capitalist view but it’s better than the alternative of where the state controls everything which is were the current regime is headed. I believe in freedom and free choice for all individuals.

Check your political alignment here.
https://www.politicalcompass.org/test

So basically you threaten that if you don’t get the grant you will riot and loot. That is an insult to the many poor people that are not lazy thugs.

If you want to stir for a living you will need to sharpen your debating skills.

Debating is not a communist forte.

I guess you’re in favour of the deficit being monetised by the SARB as well, because how else do the EFF plan to pay for all these extra handouts? And if so how do the EFF plan to control inflation and ZAR stability in such a scenario?

Government trying to spend the economy into growth and employ the masses out of unemployment was tried by the Zuma administration and failed miserably as we are now sitting with its results, but yet the EFF believe that the problem was that Zuma was not socialist / communistic enough.

Since the advent of ANC government the best (or least destructive depending on how you view it) results was obtained by the Mbeki administration who thus far has been the least adversarial towards business and under whose minister of finance Trevor Manuel the country was relatively fiscally conservative and even ran budget surpluses at times.

The problem is the EFF & radical sections of the ANC believe that the slow incremental improvements of free markets are not good or quick enough and that there is a “better” solution. The only issue is in every country where this “better” solution had been implemented the results where opposite. Instead of quickly uplifting the poor and working class it lead to the destruction of their economies thereby plunging the already poor into even further levels of poverty than before (yes there are worse levels of poverty possible than what South Africa’s poor are currently experiencing!)

Let’s return to reality, no matter how you slice it, the EFF is a minority party and would need to be at least 4 times bigger before being in a position to assume the highest office. Therefore, the EFF can promise whatever they want without being required to deliver it.

Universal Basic Income is likely going to have little impact on crime statistics, and I would like ask for an example where it was implemented successfully in a country similar to South Africa. I use similar in the sense where a country has unemployment and tax base proportional to the total number of people in the country near that of South Africa.

Lastly, to the point at hand. At the very beginning SASRIA said that they had R 10 billion in reserves and reinsurance up to three times that to cover claims. They have now paid out R 5.8 billion and government might need to inject multiple cash amounts. Did I miss something? We are not getting the full picture.

Wynandlw- 30% of South Africans, are under the age of 14. When they turn 18 who will they vote for?

Also, It’s obvious that South Africa is moving to an era of coalition politics. If the governing party dips below 50%, they will need a coalition partner. Which party is the closest in ideology?

Well for starters can we curb the reproduction rate. The rate at which babies are being born is unsustainable, and what our poor people don’t comprehend is that through having more they are diluting the value of their unskilled labour.

You don’t understand the scale of extra budget for grants

for 180b a year we would not be far off making electricity FREE for all businesses and houses in SA. Eskom revenue is a bit over R200b, so deduct exports and prob close to your grant budget.

Numbers matter, especially at scale.

Add it to the damages 782 has caused SA so far.

And how many people have gon to jail for the violence and the incitement to perform the greatest looting exercise in the history of this country????

I don’t get this. Many were arrested for looting. Others have already been to court. The media has covered some of these arrests.

For once I agree with you EFFie.You don’t get it : agreed.

My question is: With 1 looting in how in how many years, why is sasria now short of money whilst all the previous years they were just on the collecting side???? – what happened to that accumulative amount of collected money??

A fraction of this outlay would have been necessary if the cops had done their jobs and rolled out the full riot response instead of relying on rubber bullets and the so-called intelligence units had deployed the army from the start. A colossal failure of security and yet Cele, for one, has kept his job. Now government has to throw more of its scarce resources at the problem.

Sasria. Thank you Apartheid government for looking into the future.

End of comments.

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