Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      10 red flags for Apple investors

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Energy and sustainability » Sasria backtracks on Eskom grid collapse no-payout policy

    Sasria backtracks on Eskom grid collapse no-payout policy

    Sasria appears to have walked back its earlier decision that it would no longer provide cover for damage caused by a collapse of Eskom’s grid.
    By Sandra Laurence10 May 2023
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    State-owned insurance company Sasria appears to have walked back its earlier decision that it would no longer provide cover for damage caused by a collapse of Eskom’s grid.

    Sasria, short for the South African Special Risk Insurance Association, said in a circular to clients on 28 April that policies would no longer indemnify them for any loss, damage, cost or expense caused by grid failure.

    The company provides cover for damage caused by special risks such as politically motivated malicious acts, riots, strikes, terrorism and public disorders, and was established after the 1976 Soweto uprising.

    We are also in discussion with national treasury to try to mitigate against such a situation

    Sasria stipulated that it would not cover problems arising from disruptions to water supply, telecommunications systems or sewerage, or losses from rotting food. The new policy was to have taken effect from the start of June.

    But on Friday Sasria withdrew the circular.

    “Various industry stakeholders have brought to our attention the insufficiency in respect of the implementation period stipulated in the circulars and this has resulted in undue and inadvertent difficulty for the affected parties,” it said.

    In other words, the decision was circulated prematurely.

    Does this mean that the insurance association will go ahead with its decision to withdraw cover at a later stage, or has it changed its mind completely?

    Sasria spokesman Musi Dladla told TechCentral on Wednesday that the decision not to implement the new policy in June was made with consideration for its clients. “We did not want it to be as severe as excluding risk in its entirety, and we are also in discussion with national treasury to try to mitigate against such a situation,” Dladla said.

    ‘Must comply’

    “On the other hand, Sasria must comply with regulations and many of our reinsurers withdrew cover for grid failure and power surges… We need more time and wider discussion with our stakeholders to come to a solution.”

    In recent months, South Africa’s big short-term insurers have also pulled, or plan to remove, grid failure cover from their policies.

    The moves come as winter approaches – and at a time when Eskom has announced stage-6 load shedding until further notice.

    Electricity minister Kgosientsho Ramokgopa conceded that the next 150 days will be “very difficult” and that he “could not preclude” going to stage 7 or even 8 as winter progressed.

    Read: Risk of Eskom grid collapse signals end of cheap insurance

    In April, Nedbank chief economist Nicky Weimar told News24 (paywall) that the bank had been running scenarios of total grid failure, and she believed that it was more than likely to happen.

    If the grid collapsed, in a best-case scenario it would take Eskom about a week to restore power. However, it would most likely take several weeks if that happened, experts have said. There would be a cascade of problems affecting supply chains, transport, banking and fuel supplies.  – © 2023 NewsCentral Media

    Get TechCentral’s daily newsletter



    Eskom Kgosientsho Ramokgopa Nedbank Nicky Weimar Sasria
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleRand plunges on winter load shedding fears
    Next Article Gordhan, Eskom boss in China to seek solutions to power crisis

    Related Posts

    Coal to cash: South Africa gets major boost for energy shift

    13 June 2025

    Why AI could soon be managing your home solar system

    9 June 2025

    Eskom takes a bet on ‘green hydrogen’

    21 May 2025
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.