Treasury to Disburse R3.9 Billion to Bailout SASRIA to Pay Claims after Gauteng & KZN Violence
Picture: Itumeleng English/African News Agency (ANA)
National Treasury says R3.9 billion will be disbursed to state owned special risks insurer Sasria following the conclusion of the recently tabled Special Appropriation Bill Parliamentary processes.
There were concerns that Saria was technically bankrupt as it faced having to pay out up to R25 billion in claims after the violence that tore through KwaZulu-Natal and Gauteng in July.
The looting and destruction followed the jailing of former President Jacob Zuma.
Sasria is the only insurer in the country that offers cover for damage from riots, strikes, terrorism and other public disorder.
In a joint statement between Treasury and Sasria, Treasury says the R3.9 billion that will be disbursed to Sasria is intended to assist the state insurer in meeting its obligations until the end of the current financial year, which ends on 31 March 2022.
“The final additional support is dependent on how swiftly Sasria can finalise the total claim amounts, Sasria has sufficient reserves including through its reinsurers to meet all valid claims, taking into account the mammoth task currently underway, Sasria remains committed to honouring all eligible claims.”
Saria’s Cedric Masondo says Treasury has committed to enable it to meet all its policyholder commitments.
“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 has so far authorised insurers to pay claims up to R1 million, while at the same time making interim payments for large claims.
