Sasria SOC Limited
Feature
8 February 2016
What is Special Risk Insurance?
The term ‘special risk insurance’ may mean different things in different parts of the world, but it is
essentially a form of insurance that provides for unusual circumstances. In South Africa, these
circumstances include strikes, protests, civil unrest and acts of terrorism.
In other words, general insurance covers predictable risks that fall into several basic categories,
including health, home, life, vehicle, business and travel. Special risk insurance fills potential
coverage gaps in these traditional policies. It is an essential form of insurance for individuals or
businesses that engage in unusual practices or which are exposed to persistent environmental
risks such as civil and labour unrest.
South Africa has a high level of risk when it comes to special events, and Sasria was formed to
provide insurance for these unusual circumstances at affordable premiums.
The company was, in fact, formed in the aftermath of the 1976 Soweto uprising, at a time when
political unrest had given rise to risks that could not be covered by the traditional insurance
industry.
In a 2012 Insurance and Risk Management IIB Assignment, Dominika Pietrzak summarised this
situation as follows: “The South African government and the South African Insurance Association
(SAIA) recognised the need to provide insurance for losses incurred as a consequence of political
acts, hence the development Sasria in 1979. The establishment of this organisation addressed the
gap in the insurance market for special risks associated with political acts.
“Sasria later extended its cover to include damage resulting from non-political acts, such as riots,
strikes or public disorder, including civil commotion, labour disturbances or lockouts, (as well as)
losses resulting from unpaid mortgage loans (or) terrorism.” (Van Niekerk, 2007: 81).
In 1998, Sasria was incorporated as a public company, but continued to offer the same services.
The five main forms of risks covered by the company are: material damage; damage to contract
works, construction, plant and equipment; loss due to business interruption; loss or damage to
motor vehicles; and damages related to both overland and marine transit.
Sasria therefore provides cover for high levels of risk related to unusual circumstances, which retail
insurers do not provide cover for.
End.
Tel +27 11 214 0800 | 086 172 7742 | Fax +27 11 447 8630 | 086 172 7329
36 Fricker Road, Illovo 2196 | PO Box 653367, Benmore 2010 | Email [email protected] | Website www.sasria.co.za
Directors: MA Samie (Chairperson), R Mothapo (Deputy Chairperson), SH Schoeman, CM Masondo (MD), K Pepler (FD), BJ Mkangisa,
CH DuToit, MO Ndlovu, T Mbatsha, MT Moutlane
Company Secretary; MS Mavuso | Sasria SOC Ltd: Reg No 1979/000287/06 | FSP License No: 39117