Loadshedding and Insurance.

W@P

W@P

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I just got this from my insurer.

General Exclusion: Electricity Supply Network Interruption

Any loss, damage, liability, cost, or expense of any kind, including consequential losses of any kind, in terms of any section of this policy, that is directly or indirectly caused by, attributable to, contributed to by, resulting from, arising out of, following, or in any way in connection with an Electricity Supply Network Interruption at any stage (whether at the time of the Electricity Supply Network Interruption or at the reinstatement or restoration of an electricity supply) is not covered by this policy, this being so irrespective of any provision, term, condition, or endorsement to this policy which would otherwise override this general exclusion.



Electricity Supply Network Interruption is defined to mean a whole or partial interruption, interference, or suspension, of any nature, of any electricity supply, from any national, regional, or private, source to an insured business, or insured residence, or both, due to any cause whatsoever, including damage or any inability on the part of any electricity supplier to provide electricity.



Power Surge

To the extent that such cover is provided, and subject to the remaining terms and conditions of the policy, the Electricity Supply Network Interruption Exclusion will not apply to any claim for loss, damage or otherwise related to a power surge.



This General Exclusion will be implemented to all policies effective 1 April 2023
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How will they know if my fridge died because of LS and not something else etc?
They must be taking a hammering regarding claims of late that are caused by LS.

Shame.
 
I see they exclude power surges from the exclusion. So I think your fridge is safe?

Looks more like they're trying to dodge liability for e.g. a burglary that occurs because loadshedding caused the gate to stick open?
Or a car that crashes into your boundary because the street lights are out?
Or a fire that starts because someone covered the heater with blankets while the power was out...

...that is directly or indirectly caused by, attributable to, contributed to by, resulting from, arising out of, following, or in any way in connection with an Electricity Supply Network Interruption...
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I mean that's a lot of latitude right there.
 
Tomtomtom said:
I see they exclude power surges from the exclusion. So I think your fridge is safe?

Looks more like they're trying to dodge liability for e.g. a burglary that occurs because loadshedding caused the gate to stick open?
Or a car that crashes into your boundary because the street lights are out?
Or a fire that starts because someone covered the heater with blankets while the power was out...



I mean that's a lot of latitude right there.
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Yes, that sentence made my brain hurt.
 
W@P said:
I just got this from my insurer.


How will they know if my fridge died because of LS and not something else etc?
They must be taking a hammering regarding claims of late that are caused by LS.

Shame.
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How will they differentiate between LS damage and something else, probably only if you specify the reason being LS because otherwise how could they possibly tell what caused it.
 
Just got the same email from my insurer

As you are aware, South Africa has seen unprecedented levels of loadshedding and growing pressure to the electricity grid. As a result, we are seeing the majority of insurers updating policy wordings and covers to confirm that losses due to grid failure are not covered.

It was never intended for short term insurance policies to cover grid failure. These changes have been necessitated by a requirement from reinsurers for the insurance companies to update the policy wordings in order to give clarity to you, the client, and to add this as a general exclusion to your policy, to clearly define the cover, and to explicitly exclude losses due to grid failure.
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Harmonic said:
Just got the same email from my insurer
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What’s the point of having surge cover now considering it’s quite pricey and I’m assuming most claims in that regard will be rejected due to them claiming it was from load shedding?
 
W@P said:
I just got this from my insurer.


How will they know if my fridge died because of LS and not something else etc?
They must be taking a hammering regarding claims of late that are caused by LS.

Shame.
Click to expand...
Which insurer? Santam is implementing the same, but it specifically refers to "Grid Failure" and does not apply to loadshedding and does not affect your current Powersurge cover.
 
We lost a lot of fridges last year due to load shedding issues. It messed up our local transformer and we got high voltage for a time. After my 3rd fridge claim insurance changed my excess for anything electrical supply related from R500 to R2000.
 
Katelknaap said:
Which insurer? Santam is implementing the same, but it specifically refers to "Grid Failure" and does not apply to loadshedding and does not affect your current Powersurge cover.
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Ream Insurance Brokers underwritten by Western National.
 
Katelknaap said:
Which insurer? Santam is implementing the same, but it specifically refers to "Grid Failure" and does not apply to loadshedding and does not affect your current Powersurge cover.
Click to expand...
How do they differentiate between what’s grid failure and what‘s powersurge?
 
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