The Star E-dition

Most claims for damages don’t succeed

NORMAN CLOETE norman.cloete@inl.co.za

CLAIMING from your insurer can be soul-destroying at the best of times. And while Joburg residents can lodge claims against Eskom and City Power for damages to appliances or even structures as a result of load shedding, most don’t succeed.

In April, City Power spokesperson Isaac Mangena told Saturday Star that 212 households across Johannesburg had lodged damages claims for negligence resulting in damage to property and/or equipment against the entity. Of these, 153 were in the process of being finalised. For the 2021/2022 financial year, City Power said they received 18 claims as a result of load shedding, with an estimated loss of R219 000. Three claims were paid to the claimants, amounting to R23 000.

“For the current financial year, we received 14 claims with an estimated loss amount of R204 000. The broker hasn’t settled any of these claims as they are still being processed.

“We paid because the claims met the policy conditions. Based on our technical report, our insurance broker concluded that City Power was liable.

“Most are not paid because customers fail to prove beyond reasonable doubt liability on the part of City Power,” Mangena said.

But things didn’t go so well for the We Are South Africans Foundation (Wasa). Founder Gilbert Martin said the foundation lodged a claim for R160 000 against City Power for damaged laptops and one cellphone.

“This was due to electrical voltages of over 360V spiking through the suburb we lived in, apart from the over three times daily tripping our community endured over and above load shedding. It took City Power seven months to pay out at a fraction of the value of the replacement value,” he said.

Martin kept a meticulous record of the claims process and ended up speaking with 35 people before he received a response.

“The most aggravating response was from the chief of staff in the

mayor’s office, Mike Moriarty, saying they can keep me in court for months or I can accept the R26 000 settlement of R160 000 damage. Under duress,

I had to sign because our charitable foundation could not continue due to load shedding. Wasa looks after 210 families across SA. Their own lawyers agreed to pay us out at a certain date, and the insurance company paid us out one week after their own written and agreed date. The City of Johannesburg and City Power caused massive damage to our charitable foundation and our businesses and clients that we are still reeling from today,” said an angry Martin.

Moriarty, in turn, denied that he encouraged Martin to accept the settlement.

“I did not say anything of the sort. He indicated that he might head to court and I may have said that could take time.”

Meanwhile, mayoral spokesperson Mabine Seabe said the Wasa matter was handed to City Power, who assessed the claim with their insurer, and they arrived, following their due diligence, at the said amount.

“At no point was it expressed that the City or the Mayor’s Office will keep the resident in court. The City and its officials always work in the interest of residents and within the parameters of the law, as was the case in this instance,” Seabe said.

Peter Nkhuna, senior assistant ombudsman for the short term insurance industry, said whenever there are increases in load shedding, there will be an increase in power surge incidents and claims.

“Complaints naturally lag the incidence of load shedding as the losses must be discovered, claims lodged and processed and only when decisions have been taken that consumers do not like or agree with will complaints be lodged with our office,” he said.

William Tladi, spokesperson for Ekurhuleni Emergency Services, said it had received claims but would not say if the damage to appliances was a direct result of load shedding specifically.

“The City does receive claims from residents regarding appliances that get damaged apparently due to power outages, which could be caused by either cable theft, system failure and/ or load shedding. Each case is dealt with individually based on its own merits,” he said.

Tladi added that from June, they recorded 662 structural fires, but no proof exists of a link to load shedding.

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2022-09-24T07:00:00.0000000Z

2022-09-24T07:00:00.0000000Z

https://thestar.pressreader.com/article/281496460150965

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