The National Treasury says R3.9-billion will be disbursed to the South African Special Risk Insurance Association (Sasria) following the conclusion of the recently tabled Special Appropriation Bill parliamentary processes.

This is intended to assist Sasria in meeting its obligations until the end of the current financial year, which ends on March 31, 2022.

The assurance of Treasury’s support follows media reports about concerns among policyholders and the public at large regarding Sasria’s ability to honour claims following the civil unrest in July across parts of Gauteng and KwaZulu-Natal.

The Treasury has indicated that it is aware that additional government support will be needed.

It is, therefore, working closely with Sasria to finalise the actual financial support needed, which is dependent on how swiftly Sasria can finalise the total claim amounts.

It is expected that the additional support which has been flagged in the recent special appropriation will be concretised in the 2022 Budget.

Sasria, meanwhile, has indicated that it has sufficient reserves, including through its reinsurers, to meet all valid claims. While the parliamentary processes for additional government support is being finalised, Sasria confirmed on October 4 that it remains liquid and continues to trade as usual.

To date, claims amounting to more R5.8-billion have been paid out.