The short-term insurance industry, through the South African Insurance Association (SAIA), has established a limited voluntary fund (SAIA Fund) to try and alleviate the prejudice suffered by those policyholders with motor accident claims affected most negatively by the liquidation of SaXum.
The SAIA Fund will be used to make payments to such policyholders that are deemed to be, or qualify as, “hardship claimants”. The SAIA Fund is limited to policyholders with motor accident claims only. Payments from the SAIA Fund are expected to be made by the end of January 2018.
The purpose of the fund is to attempt to alleviate “hardship claimants” with qualifying motor vehicle claims that have been prejudiced, financially and in their personal capacities, by the liquidation proceedings of SaXum. For example, some policyholders have lost their employment because their insured vehicle was sold as salvage as they were not able to pay storage or towing fees or the policyholder was black-listed as they were not able to make repayments under their finance agreement.
It is important to note that the SAIA Fund falls outside of the liquidation process, insolvency law and insurance law. This is a fund created by SAIA as a form of goodwill to policyholders, in the interests of the good standing of the industry.