South Africa: Claims for losses in recent unrest hit 12 billion rand

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A police officer detains a suspect looting a shop in Johannesburg, South Africa, on July 12, 2021. Soldiers have been deployed in KwaZulu-Natal and Gauteng provinces to deal with violent protests and looting, the South African army said on Monday. Police said six people were killed and 219 people arrested over the weekend in Gauteng and KwaZulu-Natal following violent protests after former president Jacob Zuma was jailed for 15 months for contempt of court. Hundreds of shops and businesses across the two provinces were looted. (Photo by Yeshiel/Xinhua)
A police officer detains a suspect looting a shop in Johannesburg, South Africa, on July 12, 2021. Soldiers have been deployed in KwaZulu-Natal and Gauteng provinces to deal with violent protests and looting, the South African army said on Monday. Police said six people were killed and 219 people arrested over the weekend in Gauteng and KwaZulu-Natal following violent protests after former president Jacob Zuma was jailed for 15 months for contempt of court. Hundreds of shops and businesses across the two provinces were looted. (Photo by Yeshiel/Xinhua)
Spining

South African Special Risk Insurance Association (SASRIA) said it had received claims up to 12 billion rand (about 816 million U.S. dollars) for losses in the recent unrest of South Africa that caused the destruction of property including shopping malls.

Managing director Cedric Masondo said, while addressing a portfolio committee in parliament Thursday, that the insurer expected the claims to increase as businesses have 30 days to lodge their claims, predicting the claims might go up to 15 billion or 20 billion rand.

SASRIA provided short-term insurance cover against special risks such as civil commotion, strike, riot, public disorder and terrorism that the broader insurance industry does not cover.

Masondo said SASRIA was not facing any liquidity issues.

“If we end up with 15 billion, we will have money to pay out all our claims. We will need to recapitalize the company and we welcome the 3.9 billion rand from the National Treasury,” Masondo said.

National Treasury’s director general Dondo Mogajane said earlier that SASRIA would get 3.9 billion rand help from the department to pay out claims related to the unrest. Enditem

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