Most of South Africa is now well aware of the growing concerns about a national Electrical Grid Failure which will put the country in a total blackout.
Insurance companies have announced that losses that are a direct result of an Electrical Grid Failure are not going to form a covered event.
This appears to be unanimous with all SA insurers and the exclusions are set to take effect from 01 April 2023 (insurer dependent).
Elite Risk have given a nice explanation as to the difference between Loadshedding and a National Grid Failure, describing that a National Grid Failure is rolling blackouts throughout the country due to the inability of the energy supplier to generate, transmit and distribute sufficient energy while Loadshedding is load reduction implemented by the energy supplier to ensure grid stability and avoid grid failure/black out.
The insurer’s exclusion of Electrical Grid Failure does not refer to scheduled load shedding.
The insurer’s Grid Failure Exclusions are intended to exclude the total failure of the grid system.
