Santam has brought to our attention that fake information about Santam’s insurance cover for blackouts is circulating on social media. As you are aware blackouts are not an insurable risk under an insurance contract. However, Santam does offer cover for damage to sensitive electronic items that are caused by power surges in accordance with the terms and conditions stated in each client’s contract, provided the client opted for this cover. Below is communication clarifying Santam’s cover regarding the exclusion of a general Electricity Grid Failure on all policies and introducing new commercial cover limits for Business Interruption Public Telecommunications and Public Utilities. 2022 had seen unprecedented levels of blackouts due to unexpected breakdowns and planned maintenance to prevent the failure of the larger electricity grid. This has led to pressure from the reinsurance market to limit our exposure to business interruption claims arising from failure of Public Utilities and Public Telecommunications resulting from any cause. In the light of this, Santam is clarifying their cover regarding the explicit exclusion of a general Electricity Grid Failure on all our policies and introducing new commercial cover limits for Business Interruption Public Telecommunications and Public Utilities. Grid Failure Exclusion The grid failure exclusion will be implemented for all Personal Lines and Commercial Lines policies in South Africa and Namibia as follows:
Alignment with implementation dates for business on external systems will be contracted individually. The grid failure exclusion will be added to the General Section. For Personal Lines, the exclusion will also be added to the Contents Section: Contents of refrigerators and freezers coverage. New Commercial cover limits Cover limits for Business Interruption Public Telecommunications – insured perils, and Public Utilities – insured perils, will be limited to the lower of 50% of the Business interruption cover limit and R25 million, VAT inclusive, with a 3-month indemnity period limit. These new limits will apply as follows:
Wording exclusion details Please click here to view the wording changes. Santam acknowledge that the process of recent excess changes, renewal increases, and wording limitations has been extensive. These changes reflect the unprecedented nature of the shifts in our risk environment. While they wish the extent of their actions wasn’t necessary, the complexity of risk increasingly showcases the value of the intermediary and the benefit that can be gained from helping clients to structure the most effective risk management solutions. Should you have any questions, please contact William or Edmond in our Short-term department, email: service@daberistic.com Source: Santam
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January 2025
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