Treasury to provide R3.9bn to Sasria to help with riot claims
The government says it will stand in as Sasria’s ‘insurer of last resort’ given that it is the public disorder and riot insurer’s sole shareholder
The Treasury says it will disburse R3.9bn to the SA Special Risks Insurance Association (Sasria), the country’s only insurer that provides cover against risks such as civil commotion, public disorder, riots and terrorism, to help it cover the cost of claims related to the July unrest that swept across parts of the country.
Speculation has been rife about whether Sasria has the financial resources to honour all the claims stemming from the July riots, which erupted shortly after former president Jacob Zuma was imprisoned for contempt of court. A joint statement from the Treasury and Sasria on Monday said the state-run insurer had restructured its capital and reinsurance agreements while the government, as its sole shareholder, would stand in as its “insurer of last resort” to ensure it could meet all claims by policyholders...