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If a TOTAL blackout happens, will your insurance pay?

12 May 2022 11:48 AM
Tags:
Eskom
Loadshedding
Insurance
Personal finance
Africa Melane
blackout
Constantia Insurance Company
Early breakfast
Peter Todd

Africa Melane interviews Constantia Insurance Company CEO Peter Todd.

“If we had a national blackout, claims would way exceed the total capitalisation of the insurance industry in South Africa,” warned energy analyst Chris Yelland on Wednesday.

“Energy availability is going down every year,” he says.

“If we allow this to continue, we could be pushed into a partial or national blackout, causing massive social unrest and looting.

“The risk is significant.”

A candle (our "go-to" stock image for Eskom). © alekseitim/123rf.com

RELATED: South Africa needs a Marshall Plan to end its load shedding nightmare - Chris Yelland


Will your insurance cover you in the event of a total blackout – which would plunge the entire South Africa into darkness for days or weeks?

Yelland is not an insurance expert, so Africa Melane asked Constantia Insurance Company CEO Peter Todd if insurers consider a total blackout when working out premiums.

“The short answer is ‘no’,” concurred Todd.

“These outlier incidents are not typically factored in.”

Policy wordings can be quite specific around requirements to maintain alarm systems, for example…

Peter Todd, CEO - Constantia Insurance Company

Business Interruption Cover… it becomes technical when you look at the wording, to determine whether you have cover… and how long the cover might be active…

Peter Todd, CEO - Constantia Insurance Company

We’ve learned to adapt to loadshedding… but it’s very difficult and expensive to cater for a scenario when it's days or weeks… You may or may not have cover…

Peter Todd, CEO - Constantia Insurance Company

This article first appeared on CapeTalk : If a TOTAL blackout happens, will your insurance pay?




12 May 2022 11:48 AM
Tags:
Eskom
Loadshedding
Insurance
Personal finance
Africa Melane
blackout
Constantia Insurance Company
Early breakfast
Peter Todd

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