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Claims surge as load hits the shed

11 Dec 2014

Insurance companies have seen an increase in surge-related claims over the past five years, some paying out millions following recent load-shedding schedules.

A power surge is when the electricity flow is interrupted, then started again, causing an increase in the electrical current.

In one case, damage of over R1.5m was caused to the home of an MUA Insurance Acceptances client due to a fire resulting from a power surge when the power came back after an outage.

MUA managing director Christelle Fourie said the woman had been drying her hair when the power went off.

"She left home without switching the hairdryer off. When the power came back on, the hairdryer started again. As it was lying on the bed, it caused a fire and the house was badly damaged."

In another claim, R750,000 was paid out during last month's load-shedding when an entire audio-visual built-in system was blown out by a power surge.

Other claims include damaged smartphones, damaged DStv decoders, as well as claims for blown gate and garage door motors.

Fourie warned homeowners to take precautionary steps to reduce the risks of damage to appliances by unplugging during load- shedding, and installing surge protectors.

She added there was also an increase in burglary claims due to alarm systems and electric fencing that stopped working once backup batteries ran out during extended periods of load- shedding.

Outsurance spokesman Natasha Kawulesar said damage caused by power surges and dips was covered in the standard buildings and contents cover.

Darryl Grater, head of claims at Discovery Insure, which offers three insurance plans for household contents and buildings cover, said it received "a number" of power surge-related claims at the start of the month.

Anton Botha from Hollard Insurance said though it had not experienced huge volumes of power surge or load shedding-related claims to date, there had been an increase in the last few years.

"Hollard recently introduced a pilot offering power surge cover limited to R10,000 an incident at no extra cost to the policyholder and we are monitoring claims in terms of this new benefit," said Botha.

Source: The Times