Make sure you have Sasria cover in place

South Africans are known for “making a plan” to deal with unexpected eventualities or unique circumstances. One great example of this is the cover offered by Sasria for the kind of damages that could be caused by the social and political activism that is such a part of our society.

Sasria is a state-owned company and the only short-term insurer that provides cover to all individuals and businesses that have assets in South Africa, as well as to government entities, against special risks such as civil commotion, public disorder, strikes, riots and terrorism. South Africa is one of the few countries in the world where anyone is able to buy extremely affordable insurance to protect their assets against these kinds of special and potentially catastrophic risks. 

Another big reason for Sasria’s affordability is its unique business model. Sasria does not sell its products direct to end-customers. Rather it enters into long-term agreements with short-term insurers, like MiWay, non-mandated intermediaries (NMIs), who then represent and sell Sasria’s products to the end-customer, by attaching a coupon related to Sasria’s cover to their own policies. This coupon outlines the cover by Sasria that the customer enjoys and incorporates Sasria’s terms and conditions. Effectively, MiWay and other Sasria partners in the value chain handle the day-to-day administration of Sasria’s business and collect premiums on their behalf, which means that Sasria’s customer base is closely linked to the distribution channels of their partners (NMIs). Sasria in return pays the NMIs a fee for their services. 

Policyholders with cover by Sasria are automatically covered for loss or damage caused by any act calculated or directed to:

•          Overthrow or influence any state or government, or any provincial, local or tribal authority with force, or by means of fear, terrorism or violence.
•          Bring about loss or damage in order to further any political aim, objective or cause, or to bring about any social or economic change, or in protest against any state or government, or any provincial, local or tribal authority, or for the purpose of inspiring fear in the public.
•          Bring about any riot, strike or public disorder. 

It also covers the actions taken by any lawfully constituted authority in reacting to such acts. 

As always, when it comes to insurance, it’s important to understand what is not covered. For example, Sasria would not cover looting or theft unless they could be linked to the acts described above – something that might be quite difficult to demonstrate – or the loss of property to any lawfully constituted authority. It would definitely not cover industrial action like go-slows. 

It’s also worth knowing that Sasria does not cover acts of terrorism that involve nuclear weapons, or chemical and biological agents. 

These exclusions aside, Sasria has an important role to play in mitigating risk for anybody who has physical assets in South Africa. Make sure your short-term insurance policy includes cover by Sasria, and get your insurer to spell out the exact nature of the cover.