PRETORIA: Since July, the two revealed that claims amounting to over R5.8 billion had been paid.
The South Africa Special Risk Insurance Association (Sasria) has paid more than R5.8 billion in claims to businesses affected by the July unrest and looting in KwaZulu-Natal and Gauteng.
The National Treasury and Sasria revealed this on Monday in a joint statement.
The two said the work had been underway to address the damages incurred and assist businesses to start operating again.
Sasria Managing Director, Cedric Masondo, said: “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.”
The National Treasury has indicated that R3.9 billion will be disbursed to Sasria following the conclusion of the recently tabled Special Appropriation Bill parliamentary processes.
This was intended to assist Sasria in meeting its obligations until the end of the current financial year, which ends on 31 March 2022.
The National Treasury said it was aware that additional government support would be required and was working closely with Sasria to finalise the actual financial support need.
“The final additional support was dependent on how swiftly Sasria can finalise the total claim amounts. It is expected that the additional support which has been flagged in the recent special appropriation will be concretised in the 2022 Budget,” reads the statement.
According to the statement, almost 100% of claims notifications had been received and were in the process of loss adjustment. Since July, the two revealed that claims amounting to over R5.8 billion had been paid.
Sasria said it is determined to settle 80% of all claims between R1 million and R30 million by the end of October 2021.
“Sasria continues to play a key role in the insurance industry. We urge clients to continue and maintain their policies with Sasria and would like to assure them of our determined resilience to maintain our excellent relations,” said Masondo.
Meanwhile, Sasria said collaborative work with loss adjusters and the industry would be done to ensure that the buildings are rebuilt.
Sasria has engaged with industry partners and reached an agreement that the damaged properties will rather be rebuilt, than do cash in lieu payments.