Video by Sihle Mavuso
Having learned hard lessons from the July 2021 unrest and being forced to kneel with a begging bowl to the government to get R22 billion to compensate affected businesses, the state-owned insurance company Sasria says it is now properly planning for future disasters.
Sasria's (South African Special Risk Insurance Association) chief executive officer, Mpumelelo Tyikwe, told IOL on Tuesday in KwaMashu, Durban that one of the measures they intend to implement is building reserves.
The insurance company provides voluntary insurance coverage against unique risks such as civil commotion, public disorder, strikes, riots, and other disasters like terrorism.
Tyikwe was speaking after the company screened a documentary titled The Unrest, for the community of KwaMashu as part of looking back two years after the devastating experience.
The township was one of the epicentres and flash points for the seven-day looting, as a result.
All its malls, including Bridge City Mall and KwaMashu Shopping Centre, were looted and burned- but they were recently reopened.
Most of the 350 people that died came from the township, and it is the same township that nearly locked horns with Phoenix, sparking a racial war.
The documentary provided insight from Sasria executives who worked on claims after assessing the damage.
It was revealed during the documentary that the seven days of looting that spread to Gauteng inflicted damage amounting to R60 billion to the economy.
NEWS: SASRIA CEO, Mpumi Tyikwe has revealed that they had to fork out R32 billion to compensate businesses that were affected by the July 2021 unrest. Since they had no money to pay for the 6000 claims, government had to step in and help. @IOL pic.twitter.com/ogzkNgGvfA
— Sihle Mavuso (@ZANewsFlash) July 4, 2023
Sasria executives revealed that they were overwhelmed, having to suddenly deal with 6,000 claims.
In a normal year with no unrest or looting, Sasria said they deal with mild cases of around 3,000.
Reputation-wise, KwaZulu-Natal suffered a lot as most investors and visitors started to view it as a violent province.
Tyikwe made an example of how a Durban-based electronics company that originated in South Korea pocketed its compensation and left the country for good.
In KwaMashu for the flighting of a documentary about the July unrest by SASRIA. The township was one the epicentres of the unrest and all its malls were looted and burnt down. @IOL pic.twitter.com/sCFV7AqHUM
— Sihle Mavuso (@ZANewsFlash) July 4, 2023
Having learned all these lessons, Tyikwe said they have to plan ahead, build their reserves, and be prepared as the country continues to experience more unrest.
“Currently, our financial position has improved, it is much better than it was before July 2021, we are sitting with financial resources just in excess of R10.5 billion.
“Which means that we can be able to deal with an event like this one.
“If an event is more than that, the unfortunate part is that we will have to ask for government assistance again.
“However, what we are doing from now on, going forward is that we are engaging with the national treasury to say that Sasria must retain its profits over the years.
"So, we gonna make a good profit, for instance, this year, so if we were to continue to have those profits, we want to build reserves up to R30 billion so that when we have another major event, we will not have to ask for government assistance again,” Tyikwe said.
Tyikwe said the reason they were able to settle claims from private companies rather than those owned by the State was that their documentation was filed quickly and it was always in order.
Although most structures have been rebuilt, some structures in the township, like the Ithala Shopping Centre across from the Durban Metro Police station in the township of KwaMashu are still in ruins.
A few kilometres from the KwaMashu E SAPS police station is a black-owned shell filling station that has not yet opened after being looted and burned down.
Also still trying to rebuild after the looting is the Total filling station behind the Spar Supermarket in KwaMashu.
The garage was not only looted but its pumps were also vandalised and later burned down.
IOL Politics