The number of special-risk claims in the freight transport sector in SA has doubled in the space of five years. The millions paid out have more than quadrupled in the same time period. Special-risk insurance provides a window into the country’s socio-political state.
The South African Special Risks Insurance Association (Sasria) provides special-risk cover to all individuals and businesses that own assets in the country, including the government. This state-owned company, recently recognised as one of the best-managed state-owned entities, offers unique cover against risks such as civil commotion, public disorder, strikes, riots and terrorism, at affordable premiums.
The company was formed following one of SA’s most defining moments, the 1976 uprisings. Today, Sasria allows businesses to restore their liquidity or operations quickly and efficiently after experiencing loss or damage due to special-risk events. This translates into preventing job losses, maintaining livelihoods, restoring pride and dignity and facilitating economic stability.
What happened during the 2013-14 financial year, when Sasria paid a total of R31,363,257 for 631 claims in the freight transport sector, and the 2017-18 financial year, when there were 1,275 claims totalling R136,402,676?
In the past five years, the political landscape has given birth to a new type of riot, such as that seen in the FeesMustFall movement and in demands for economic freedom, in addition to the regular labour sector and service delivery strikes, among others. All of these put the freight transport sector under threat. According to Municipality IQ, there are 20 strikes in SA a day on average, making such insurance a necessity for any freight business using the country’s roads.
Letlhogonolo Tau, head of customer relations management at Sasria, emphasises the importance of freight transport insurance to ensure that losses incurred during delivery of goods by road are covered.
“There is a saying in the transport industry that without trucks, SA wouldn’t function,” he says.
Sasria cover comes into effect in cases where truck owners or road freight companies experience a drivers’ strike or if their trucks are burnt during a riot. During riots, communities have been known to close roads off, thus preventing trucks from passing through. This can lead to looting of goods in transit. A road freight company that has Sasria cover in place will be compensated if such losses and damages occur.
“We are the only company in SA that covers this type of event,” Tau says. “A strike doesn’t even have to be legal for cover to kick in. A strike is a strike. All a client needs to do is report it to the police and then institute a claim with his/her broker or insurance company.”
Tau says Sasria monitors the media constantly for incidents of strikes or civil unrest.
“We are always on high alert when we hear about strikes or protest action as these events often trigger crime and losses to transport companies,” he says. “Sasria covers all goods in transit – including food, fuel, household goods and everything in between – for trucking companies of all sizes. Ours is the only company that offers this type of insurance for special risk, and no valid claim has ever been denied.”
The cover is also affordable: to cover one truck costs as little as R45.39 a year, which works out to R4.54 a month.
“We try keep our cover as affordable as possible,” says Tau. “The freight services and logistics industry creates a lot of employment in the country and as Sasria, we are mindful of goods and food being delivered on time and people retaining their jobs.”
Tau says this is why the cover is so accessible.
“If you have one truck out of service, the ripple effect may be felt by many ordinary South Africans.”
Road freight, though highly exposed to political conflict situations within communities, is still the preferred and most popular mode of transport, as it is easy to monitor. It is also cheap and fast.
Sasria also covers marine freight, as long as it is within South African waters.
“The minute the cargo leaves South African waters, the cover is no longer effective,” Tau says. “Food and goods that travel by water from various harbours across the country for export will be covered while still in South African waters.”
Sasria policies are sold exclusively through brokers and insurance companies. Check your short-term insurance policy to make sure you are covered. For more information, visit www.sasria.co.za.
This article was paid for by Sasria.
