The right to strike is protected by the South African constitution, and this right has been exercised more and more in the last two years. Unfortunately, many of these strikes have been accompanied by violence which has resulted in damage to property. Standard insurance policies issued by private sector insurers do not provide cover for damage as a result of these events as they are not allowed to underwrite risks of this nature. In terms of South African insurance, in order to enjoy protection, a policyholder has to purchase Sasria (South African Special Risks Insurance Association) cover. “Sasria only comes into effect if the loss incurred is actually covered by the underlying policy – it cannot be used because employees are simply refusing to work,” explains Jason Freeman, director ofspecialist marine insurance broker Eikos Risk Applications. “If, during the strike action, an insured truck (with Sasria cover) is burnt, the policyholder will then be able to lodge a claim.” Freeman pointed out, however, that although Sasria covers strike action, there are exclusions. These include rebellion, war, insurrection, revolution and military or usurped power. You may be reading this and thinking that your particular sector or company is impervious to the effects of labour strikes, and thus consider the additional expense of Sasria cover to be unnecessary. Then, consider this: according to Sasria’s 2013 annual report, claims have increased by 91%, and this has been driven largely by labour strikes. Unfortunately, they believe that this trend will continue. Strikes and protests continue to grow in violence, and with this comes an increased risk in material damage to your assets. For a small additional premium, you can be protected against losses of this nature. It is thus imperative to ensure that your marine insurance broker has you covered adequately for all losses covered in terms of Sasria.
