In Sunday evening's address, President Ramaphosa highlighted that we are one of the few nations that have a state-owned insurance fund, South African Special Risks Insurance Association (SASRIA). This fund is utilised to cover claims for damage caused by politically driven riots, strikes and public unrest. The President stated that businesses that are insured and were victim to the looting over the last few weeks will be covered by SASRIA.
The President further claimed that SASRIA will be collaborating with Private Insurance Companies to ensure payments are made without any interruption. This will assist SASRIA with capacity constraints experienced as the surge of incoming claims dawns on them. The President further confirmed that Government will ensure that SASRIA will honour all their obligations and will make their services available to assist SASRIA.
This collaboration permits these private insurers to settle claims up to R50 000 immediately as stated by the Executive Manager of SASRIA, Fareedah Benjamin. This is a positive step, as SASRIA's processing of claims have a historic reputation of being slow and rather unsteady. Larger claims will still be subjected to the usual SASRIA process, however this will be accelerated.
The question remains is what happens to the many small to medium businesses that were not insured. The President promised that they will not 'abandon' these businesses. He outlined that aid will be provided to these businesses by way of special funds. The procedure to obtain support from these special funds will be announced in due course.
A further bit of support will be given to those employees who have lost their jobs because of the recent civil unrest. This will be aided by the UIF and will be done with the hope of reducing the suffering of those who are without income whilst businesses try to rebuild their infrastructure.
As the country hopes to rebuild the already bruised economy, the President's promise of support is much needed, however, the question that remains is whether these promises will indeed be kept.
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