Following the recent strikes in South Africa, Short-term Insurers has received some interesting questions regarding what is covered and what is not covered during this time.
Each product has its own clauses and conditions. Read your policy thoroughly, and be informed what you are covered for.
What should be in place?
RSB recommend the following cover to be in place.
In order to avoid any of situations OF NOT BEING COVERED, ensure to have SASRIA cover in place on your short term policy.
According to insurance regulation, on a personal lines policy, SASRIA is not compulsory. The insured has to make certain SASRIA cover is included on the policy.
On commercial policies,SASRIA is NOT automatically included, it must be chosen and paid.
Vehicles must be correctly insured.The specific use, PRIVATE, BUSINESS or COMMERCIAL. Business use must be stipulated on the policy in cases where vehicles are used for business, especially on personal lines policies.
GOODS IN TRANSIT
Goods to be transported must be insured under this section. Choose the All Risk option.
ACCIDENTAL cover in case of DEATH or DISABILITY
Regarding high risk job performance, include this cover on the company’s commercial policy. It can also be considered as an employment benefit.
Expensive items travelling with should be covered more specific.
* Take the necessary preventative measures, for example; don’t allow your drivers to travel along high risk routes.
* Ensure that your clients understand and are aware of the possible delays in delivery.
* Transport smaller amounts of freight to minimize risk.
We have decided to compile a list of the most frequently asked questions and their answers
Q1.“I have more cash at my premises than normal because the money carriers are on strike. Am I allowed to take it to the bank and what will happen if I get robbed along the way? What happens if I am robbed at my premises and I have more cash than normal? This situation is out of my control.”
A. You will not have cover for this incident unless you have made prior arrangements with the insurer and if they are prepared to accept the risk
Q2. “Due to the strikes I do not have enough stock in my shop. Can I claim for loss of income?”
A. No, you can claim for a reduction in turnover if the strikers caused damage to your property and this resulted in a loss in turnover (no loss of profit covered for SASRIA claims). The best option is to take civil action against the relevant union, if the strike was a wildcat strike. If however it was an organized strike, there is nothing you can do as this is a right provided to workers under the LRA Relations Act).
Q3. “If I continue to use my truck during the strikes and the truck gets thrown with stones or even burnt, can I claim under Employer’s Liability?”
A. This will be covered. The claims are however submitted to SASRIA and SASRIA takes responsibility of settling the claim. The insurer does not administer SASRIA claims, the premiums are collected and paid to SASRIA on behalf of clients.
Q4. “If my truck driver gets hurt during the strike, can I claim under Employer’s Liability?”
A. If the client registered with COIDA (Compensation for Occupational Injuries and Diseases Act) they need to claim from COIDA for the injury. If the client did not register with COIDA, they can still register and pay an assessment fee (fine) and COIDA will then also register and settle this claim. If COIDA only pays out part of the claim or they reject the claim altogether, then the client can register a claim with us under the Employer’s Liability section.
Q5. “My truck drivers are on strike, therefore my trucks are standing still. Can I claim for loss of income? Also, can my clients (whose stock I am unable to transport) put in a claim against me?”
A. No, claims can only be submitted for loss of income following damage to insured property.
*Be aware of possible delays in delivery.
*Transport smaller amounts of freight to minimize risk