Truck burning underscores prudence of special risk insurance

The recent spate of truck attacks nationwide has brought into sharp focus the need for special risk insurance. Mike Brews of Horizon Underwriting Managers says it is crucial for business owners – be it cargo owners or transporters – to review their assets insurance policies and ensure they have Sasria cover included for special risks. Sasria refers to the South African Special Risks Insurance Association, a state-owned company and the only short-term insurer that provides cover against special risks such as civil commotion, public disorder, strikes, riots and terrorism. Whilst Sasria cover is most likely included in insurance cover – as Sasria itself does

not do direct business with the public – it is still up to each individual purchasing insurance to include it or not. “Anyone without Sasria cover caught in the cross-hairs of violent or other protest action, could run the risk of loss. It is therefore essential to ensure the necessary Sasria cover is in place,” he said. Brews told FTW that the spate of attacks on the trucking fraternity – especially on the N3 route between Durban and Johannesburg – were considered an unrest situation and standard insurance would not necessarily apply. According to the Road Freight Association, companies employing foreign truck drivers are being targeted in the attacks. It is estimated that

there has been more than R1.2 billion in damage to trucks and cargo in recent months. “One is never sure when these upheavals will take place and it can happen at any time, which is why it’s imperative that companies make sure they have the right insurance in place. Even if you unintentionally drive into a situation like this, Sasria cover will be required." He said companies were advised to try to minimise losses and ensure they kept track of what was happening on the ground on the routes on which they were operating.

“Transporters in particular need to be aware and as far as possible plan ahead. If there is any concern about a particular area it is advised to either wait it out or use a different route.” Brews said cargo owners were advised to make sure they were using reputable carriers and service providers. “Use a company that does not cut corners – the first to go is often security and insurance.” Standard insurance would not necessarily apply in the case of the spate of attacks on the trucking fraternity. – Mike Brews