The South African Special Hazard Insurance Association (Sasria) expects claims related to the July riots to amount to 20 billion rand, with 10% of the amount to be paid by the end of this week.
Following the riots, the insurance company says that more than 95% of all registered insurance claims are being serviced.
“Currently there [have] Concerted efforts have been made to resolve all small claims, while interim payments for large claims are made at the same time, ”Sasria said in a statement.
“On small claims, the Sasria agent companies have been hard at work, settling and paying claims of up to R1 million.”
The group adds that once the claims quantification process is completed and the work done by the loss adjusters is completed, it is estimated that claims would reach between R19 billion and R20 billion.
According to Sasria CEO Cedric Masondo: “At the end of the week, we would have paid R2 billion between ourselves and the agent companies.
“Our goal is to resolve all valid small and medium-size claims within the next six weeks.”
Read: South Africa’s economy is poised to be hit by R50 billion from the riots
As business owners work to restore what they have lost, Sasria said clients have been using interim funds to remove debris and clean up where the damage occurred. However, he noted that rebuilding damaged infrastructure for large companies will take a long time and therefore his goal is “to involve all customers in the journey to see how their business recovers.”
“The scope of the damage and destruction is great,” Masondo said. “We would like to thank our customers for their cooperation. We ask for patience and we can assure all of our clients that we are working hard with our agent companies to resolve claims as quickly as possible, while working to make a meaningful contribution. [to] rebuilding our economy. ”
Masondo praised the response Sasria has received from reinsurers, noting their prompt response and prepayment of reinsurance funds in certain cases, thus helping the government insurer avoid liquidity problems.
Gauteng SME Rand 100 Million Fund
Meanwhile, the Gauteng provincial government and the Industrial Development Corporation (IDC) have announced a 100 million rand fund aimed at supporting small businesses affected by the pandemic and unrest.
According to Gauteng MEC for Economic Development, Environment, Agriculture and Rural Development Parks Tau: “The Gauteng Rebuilding Fund will benefit SMEs [small, medium and micro-sized enterprises] they are not insured to ensure that small businesses can contribute to the Gauteng economy without the burden of formal business loans. ”
Read: Riots and looting add to the woes of black SMEs
Announcing the opening of applications on Tuesday (Aug 24), Saki Zamxaka, CEO of Gauteng Enterprise Propeller (GEP), said that qualified Gauteng companies can now apply for financial and non-financial support through the online application system of GEP or through personal applications at the GEP regional offices.
“We are now ready to accept applications from small businesses that have had a torrid time for the past two years. The financing, which will be offered as a 50/50 combination of loans and grants, will help small businesses recover by covering the costs of rebuilding, repairs, replacing critical infrastructure, inventory, equipment and supplies, ”said Zamxaka.
Qualifying companies can download application forms here and follow the instructions on the website. Alternatively, interested business owners can visit their nearest regional office for application assistance.
Palesa Mofokeng is a Moneyweb intern.