by Following the disastrous flooding in Johannesburg at the beginning of this month, there is no doubt that insurance companies have been inundated with claims.
Michelle van Staden, Head of Claims at Mutual & Federal expected as much as R100 million to be paid out as a result of the floods. This amounts to a quarter of total claims in a month for the insurer. By the following morning, following the floods, over 80 claims amounting to R13 million had already been registered.
Outsurance had received 800 claims and Santam 238 claims by Thursday.
Not All Flood Claims Accepted
“While Insurers do cover floods as so-called ‘acts of God’, most policyholders do not distinguish between ‘property maintenance’ and ‘weather-related’ claims”, said Van Staden.
“What we often find in these circumstances is that people don’t have their homes in good repair. Therefore, the damage (sustained) is not because of the storm but due to poor maintenance,” she said.
While it is likely most policyholders will receive payment without a hitch, many may be rejected as the policies do not cover flood or weather-related damage. In cases where policyholders took out cover focused predominantly on the lowest premium possible, they may discover they are only covered for ‘the basics’.
CLICK BELOW to read about the top 10 reasons why your car insurance claim could be rejected.
Cars In SA Underinsured
“SA’s insurance industry was well capitalised and this catastrophe was well within its ability to manage”, Van Staden said.
“What was of more concern was that only about 30% of cars in SA were insured. This means most drivers affected by the floods were not covered”, she said. “Given how (financially) stressed consumers are, this will have a severe impact on their financial situation.”
The floods caused much devastation with six reported dead, countless injured, and many people losing their homes entirely.
The JDMC team focused on houses and informal settlements that were affected by the floods. This included Alexandra township and areas along the Jukskei river.
All flights at Oliver Tambo International Airport were either diverted or cancelled as a result of the floods.
