Several big South African insurance companies won’t cover their customers for certain damages related to the failure of Eskom’s power grid.on the development after seeing an email that Hollard Insurance sent to clients notifying them of a new “Electricity Grid Failure” exclusion added to their policies.
Momentum Insure chief actuary Rudolph Britz said the company did not cover grid failure itself, but the impact of grid failure continued to be covered. “We continue to experience great pressure from our reinsurance providers to limit any exposure to systemic events,” said Blaauw said. “The accumulation of these losses is not something that can be priced for as part of an insurance product or sufficient capital held to cover such a loss — as such it is an uninsurable loss.”
Load-shedding itself is not an insurable event, but an effect might be that an electricity user suffers damage to plugged-in equipment due to a power surge that can occur when electricity in their area comes back on. Outsurance is one of the insurers who has acknowledged it had to implement a higher excess on these claims to keep overall premiums affordable.
Cant blame them to be honest. But I do think Megawatt Park should become a dumping ground for appliances ruined by them.
Interesting, so that suggests they do factor that as a real risk now...
They tell you to insure in case of a disaster. And when the real disaster comes they all run for the hills and change the rules.. Scamsters
South African insurance companies choose to exclude a risk that would in all likelihood bankrupt them If you're upset with this ask yourself if you would be ok living in a world with no insurance at all because they all went bankrupt paying out claims due to a grid collapse