Legal Articles

Owing to the recent protests and looting in some parts of Kwa-Zulu Natal and Gauteng, there has been much talk in the media and streets about the South African Special Risks Insurance Association (SASRIA) and its role as a short-term insurance public entity.

SASRIA is listed under Schedule 3B of the Public Finance Management Act 1 of 1999, owned by the State and under the superintendence of the National Treasury. It operates on its own balance sheet.

SASRIA Covered Explained and Frequently Asked Questions

In this article we will answer some of the questions in the public domain with regards to SASRIA in order to understand how it operates and its role in the insurance industry. In the event that there are any affected parties who require further assistance, they are most welcome to contact us for a consultation wherein we will comprehensively assist.

Insurance is a complex area and therefore we strongly advise parties to seek legal assistance to enhance the prospects of their claims and secure interests.

What is covered by SASRIA?

SASRIA covers loss due to the following;

• Terrorism
• Public disorder
• Strikes
• Political riots e.g service delivery
• Non-political riots e.g student protests

Is it compulsory to have the SASRIA cover?

Policy holders have an option to add SASRIA cover or not on their underlying insurance policies. However, the recent protests and looting have shown how important it is to have the cover.

Who qualifies to buy SASRIA cover?

Individuals and businesses with assets in the Republic of South Africa and within the jurisdiction of South African waters.

Does SASRIA cover war and pandemics such as COVID-19?

SASRIA does not cover wars, pandemics and/or financial loss due to the pandemic.

Does SASRIA cover an individual injured in a strike or protest?

SASRIA does not have a license to cover personal injury or loss of life.

Are natural disasters such as hail, storms, floods and earthquakes covered by SASRIA?

Natural disasters are within the ambit of underlying insurance companies, and excluded from SASRIA cover.

How do I purchase SASRIA cover?

SASRIA cover is purchased through insurance companies who have signed outsourcing and intermediary agreements with SASRIA. You can contact your insurance broker for assistance in purchasing SASRIA cover.

Are government employees automatically covered under SASRIA?

SASRIA cover is not automatic to any entity, it must specifically be purchased and confirmed under an underlying insurance cover.

Since SASRIA cover excludes theft, what happens in the event of looted or stolen goods during a riot?

To the extent that the looting or theft is a direct result of riots or protests which are covered under the SASRIA ambit, such loss will be covered should all the requirements and documents be met and submitted.

In the event that a policy holder hires security guards to avoid loss due to riots taking place in the area, can this cost be covered?

Cover for security cost can only be activated provided that the danger of a covered event is imminent and that it is within a 10km radius of the insured property.

Van Deventer & Van Deventer Incorporated – Claims Attorneys South Africa

We are living during volatile times at the moment in South Africa owing to the economic slump due to the pandemic, as well as political upheaval. We advise that individuals and businesses ensure that they have adequate cover so as to avoid further loss.

We comprehensively assist with Insurance Law and related matters, whilst fully prepared to guide individuals and businesses in this complicated area of law and commerce. Kindly make contact with us for comprehensive assistance in these and other matters.

The information contained in this site is provided for informational purposes only after consultation of the Information pages of SASRIA, and should not be construed as legal advice on any subject matter. One should not act or refrain from acting on the basis of any content included in this site without seeking legal or other professional advice. The contents of this site contain general information and may not reflect current legal developments or address one’s peculiar situation. We disclaim all liability for actions one may take or fail to take based on any content on this site.