Counting the cost of N3 truck attacks, anti-government protests
A spike in the severity and number of claims due to protest action has hit the state-owned SA Special Risk Insurance Association’s (Sasria’s) bottom line, leaving it unable to pay dividends to the government for the first time since 2009.
This is according to its MD, Cedric Masondo.
The short-term insurance company, which provides special risk cover for public disorder, strikes, riots and terrorism, recorded its first pretax loss, R73m, for the year to end-March, down from the previous year’s R1.3bn profit.
The losses were predominantly driven by a 138% increase in net insurance claims, which reached R1.58bn.
The number of claims rose 50% from the previous year to 5,443, the highest in the company’s 40-year history.
The claims amount also increased, Masondo said.
Events during the course of the year that contributed to the severity of the claims included protests in Mooi River, KZN, where trucks were set alight on the N3, and those in the North West calling for the resignation of then premier Supra Mahumapelo.
In recent years, service delivery protests across the country have been the major driver of claims, Masondo said, replacing labour strikes as the dominant cause.
Service delivery protests now account for about 80% of claims, with labour strikes making up the balance.
See the full report in today's Business Day newspaper