Santam has informed us of the latest changes in their policy endorsements regarding Power Surge & Electricity Grid Failure. The last couple of months has been a period of immense challenges for our country. We have seen high levels of load shedding, which impacts our daily lives. The country’s power utility has reassured all of us that it is working hard to protect our electricity grid by balancing supply and demand in a controlled, risk-managed manner. Within this environment, Santam wants to provide you with clarity on your cover, cover changes, and tips on how to reduce your risk. Power Surge cover Load shedding, the temporary switching off of power supply in a scheduled and controlled manner, in itself, is not explicitly covered by insurance policies. However, it does result in the frequent switching on of electricity supply to your premises and, depending on the quality of the network and the components thereof, it could cause power surge that damages your electronic items. Subject to the electricity grid failure or interruption exclusion noted below, Santam continues to provide cover for power surge damage, including after load shedding, if selected on your policy. During the last 12 months, our power surge claims have however increased by around 50%, and more than 200% over the last 3 years. To ensure the sustainability of this power surge cover, with effect from 1 June 2023, the following comes into effect: 1. You will have a compulsory excess amount of minimum 10% of claim , subject to a minimum of R5 000 when claiming for any pow surge damage. This minimum excess amount will also apply to any lightning strike damage under the business all risk, personal all rand electronic equipment sections of cover. 2. The following will be excluded from our power surge cover: - Power surge damage that occurs as a result of switching on electricity, following load shedding in excess of 12 consecutive hours. - Power surge damage that occurs as a result of switching on electricity, following electricity grid failure or interruption. 3. The Accidental Damage section of cover no longer provides cover for damage caused by power surge, as this can be specifically insured under its own specific section of cover. SOME TIPS TO HELP YOU REDUCE OR EVEN ELIMINATE YOUR RISK OF LOSS DUE TO POWER SURGE: It is best to unplug your devices when the power has been switched off. After power has been restored to your premises, it should be safe to plug them back in again. In an electricity grid failure or interruption scenario, this is especially important. Surge arrestors or surge protection devices may provide protection, depending on the type of surge experienced. The following should be considered: - Any device should come with a warranty of at least 5 years, for which you should receive an installation certificate. - Any device should protect against over voltage, under voltage, multiple strikes and lightning surge. Remember to check your policy to confirm your power supply covers, including their insured amounts. You can select, reduce or increase your power surge cover options at any time, with the resultant impact on your premium. Electricity grid failure or interruption Electricity grid failure or interruption means a total or partial interruption; interference; suspension; blackout; failure; of electricity supply in connection with any national; regional; municipal; local; private; grid, in connection with any premises or business of the Insured. With effect from 1 June 2023, Santam’s electricity grid failure or interruption exclusion applies and where already enforced, is extended to incorporate the following: 1. Any damage caused directly or indirectly by electricity grid failure or interruption, except as specifically provided for under the Business Interruption section in respect of elective extensions to other premises, namely: – Public telecommunications – insured perils – Public utilities – insured perils and then further subject to the Electricity grid failure or interruption being to an area not greater than any one single municipal area. Power surge damage as noted by point 2 under Power Surge cover above2. Click here for link on FAQ on these changes Should you have any questions regarding your policy please contact Koketso email:service@daberistic.com tel:(011)658-1333
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AuthorKevin Yeh Archives
January 2025
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