Sasria cover, explained for brokers

What Sasria is, and why it goes through you

Sasria SOC Ltd is a state-owned short-term insurer (FSP 39117) created to insure the risks the conventional market withdrew from, and the only insurer in South Africa for those risks; the cover is restricted to property within the Republic. It functions through a network of underlying insurance companies as its agents: your client’s insurer issues the Sasria coupon alongside the underlying policy and collects the premium with it. Because Sasria does not deal with the end customer, its regulations say the giving of advice is outsourced to the distribution channel and that everyone engaging with the customer must be FAIS accredited. The July 2021 unrest produced insured claims exceeding R31 billion, withdrew Sasria’s excess-of-loss “Wrap” cover and reshaped the political-violence market; the Wrap was relaunched on 1 April 2026 at a R500 million limit above the R500 million primary coupon.

The perils, in Sasria’s words

The General Section defines the special risks as loss or damage caused by:

1. 01(i) any act (whether on behalf of any organisation, body, person, or group of persons) calculated or directed to overthrow or influence any State or government, or any provincial, local or tribal authority with force, or by means of fear, terrorism or violence;
2. 02(ii) any act which is calculated or directed to bring about loss or damage in order to further any political aim, objective or cause, or to bring about any social or economic change, or in protest against any State or government, or any provincial, local or tribal authority, or for the purpose of inspiring fear in the public, or any section of the public;
3. 03(iii) any riot, strike or public disorder, or any act or activity which is calculated or directed to bring about a riot, strike or public disorder;
4. 04(iv) any attempt to perform any act referred to in (i), (ii) or (iii);
5. 05(v) the act of any lawful authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in (i) to (iv).
6. 06“Public disorder” includes civil commotion, labour disturbances or lockouts. Looting is covered where it occurs during the operation of one of the insured perils — looting on its own is not a Sasria peril.

What it excludes

The Sasria general exclusions, incorporated into every wording:

How the coupon attaches — and where the gaps are

Sasria’s Material Damage wording draws the line: Material Damage (Fire) and Contract Works coupons attach to the underlying policy; Motor and Business Interruption are stand-alone Sasria policies with their own terms. For an attaching coupon the General Section is precise about what carries across:

1. 01The non-motor coupon attaches to the underlying policy’s terms, conditions, warranties, exclusions and exceptions — but not its extensions. There must be an underlying fire policy in existence, unless a dummy or pro forma policy has been issued.
2. 02Extensions are not automatically insured. To cover an extension the Sasria sum insured must be increased by the value of the additional cover so that premium is paid for it, with a schedule of the extensions attached to the coupon; extensions of a consequential or indirect nature cannot be insured by Sasria at all. Sasria’s own words: failure to add additional covers to the Sasria sum insured will result in a gap in cover.
3. 03On a collective (co-insured) underlying policy the lead insurer must issue the Sasria coupon for 100% of the risk; a co-insurer may not issue a coupon for its share.
4. 04Where the client needs the cover but no effective underlying policy exists — the underlying insurer is not a Sasria agent, the policy was issued overseas for a South African risk, or an agent has declined the underlying risk — the agent may, with Sasria’s approval, issue a pro forma underlying policy for the coupon to attach to.
5. 05Cancellation of the underlying policy does not automatically cancel the Sasria coupon: the insured must be given the option to continue the Sasria cover (unless the cancellation is for non-payment), and a dummy policy is issued for the coupon to attach to. Sasria itself never cancels cover once effected; only the customer can.

Sums insured, limits, premium and excess

The numbers, from the General Section and the 2025 Material Damage wording:

The FAIS duties around Sasria

Sasria’s regulations put the offer of cover on the distribution channel; the General Code of Conduct says what that offer looks like in the file:

1. 01Offer it, every time, with the cost. Sasria: “not compulsory, clients must be given an option to purchase the cover after being provided with details of the nature of the cover and the costs thereof.” The Code: section 7(1)(a) — a reasonable and appropriate general explanation of the nature and material terms of the contract, and full and frank disclosure of what the client needs to make an informed decision.
2. 02Record the decision. Sasria cover offered and taken, or offered and declined, is a product considered and a recommendation made or not followed — section 9(1)(b)–(c) of the Code; a client who declines against your advice gets the section 8(4)(c) alert and a note that they elected not to follow it.
3. 03Reconcile the sums insured at every renewal and every endorsement. An underlying policy whose sum insured rose, or gained an extension, while the Sasria coupon stood still is exactly the “gap in cover” Sasria warns of — and a section 8 suitability failure in the file.
4. 04On a replacement or a mid-term move of the underlying policy, do not leave the coupon behind. A coupon needs an underlying fire policy to attach to; the new insurer must issue a new coupon, and the old one is cancelled at the client’s election, not automatically.
5. 05Business interruption is a separate Sasria policy. A client with Sasria material damage cover and none for BI has consequential loss excluded under 4.4 — say so in the ROA.

Where Sasria advice fails

The recurring shapes after July 2021:

1. 01Cover never offered, so never declined — nothing in the file shows the client made an informed choice.
2. 02Coupon sum insured on the old value, or on the first-loss figure, or without the extensions the underlying policy gained.
3. 03Material damage covered, business interruption assumed — and excluded.
4. 04The underlying policy moved insurer at renewal and the Sasria coupon was not re-issued.
5. 05Looting claimed without an insured peril in operation, or property outside South Africa.

Frequently asked questions

Is Sasria cover compulsory?

No. Sasria’s own regulations say the special-risk cover is not compulsory and that clients must be given the option to buy it after being told the nature of the cover and its cost. It is non-refusable — an agent may not refuse a client the cover — and Sasria itself never cancels it once effected.

Does Sasria cover looting?

Only where the looting occurs during the operation of an insured Sasria peril — a riot, strike, public disorder or one of the politically motivated acts in the General Section. Looting with no insured peril in operation is not covered.

If my client’s policy has extensions, does the Sasria coupon cover them?

Not automatically. The non-motor coupon attaches to the underlying policy’s terms, conditions, warranties and exclusions but not its extensions. Each extension must be added to the Sasria sum insured, with premium paid and a schedule attached; consequential-loss extensions cannot be insured by Sasria at all.

What is the Sasria limit?

R500 million any one insured per period of insurance, in aggregate, across material damage and the business-interruption heads; R500 million any one construction contract (R550 million shared); retail value for a motor total loss. The Wrap Cover relaunched in April 2026 adds R500 million above that, to R1 billion combined.

Is there an excess on a Sasria claim?

Not on Material Damage (Fire). Contract Works carries 0,1% of the contract value (minimum R250 domestic or R2 500 other, maximum R25 000) and R1 000 per event on construction plant.

What happens to the Sasria coupon if the underlying policy is cancelled?

It is not cancelled automatically. The insured must be offered the option to keep the Sasria cover (unless the cancellation was for non-payment), and a dummy policy is issued for the coupon to attach to. Only the customer can cancel Sasria cover.

This page is general information about Sasria cover and FAIS advice duties, not legal, compliance or insurance advice. Sasria’s terms are quoted from its General Section regulations and 2025 Material Damage wording as published on sasria.co.za; check the current wordings and the client’s coupon before relying on them.

Sources

1. 01Sasria SOC Ltd — General Section (regulations): section 3 perils, section 4 general exclusions, section 5 underwriting philosophy, section 7 underlying policy, sections 10–14 limits, sum insured, premium and discounts
2. 02Sasria SOC Ltd — Material Damage policy wording (2025): attached vs stand-alone policies; excess
3. 03Sasria SOC Ltd — “Sasria relaunches R500m Wrap Cover” (1 April 2026): the excess-of-loss layer above the primary coupon, the July 2021 claims figure and Sasria’s capital position
4. 04Sasria SOC Ltd — Material Damage product page (insurer and broker)
5. 05Auto & General — “SASRIA rate increases” (the 1 October 2025 rate revision under Sasria Circular 538: effective at renewal, mid-term endorsements keep the old rate; secondary source — Sasria’s rate schedule PDFs were not being served when this page was written)
6. 06General Code of Conduct, Board Notice 80 of 2003 as amended to Board Notice 706 of 26 June 2020 — sections 7, 8 and 9 (consolidated text hosted by Masthead)