Municipal Insurance in South Africa

If Municipalities are under-insured, do they have the finance to cover for any potential losses themselves?

Municipal Insurance - it has cover for unforseen risks

Why Municipal Insurance:

Municipalities have very different needs than those of businesses, where appropriate protection or risk cover is required.

Many municipalities are under-insured and stand to lose millions, in the event of assets being damaged in natural or man-made disasters.

Municipalities are responsible for managing their own finances, including the protection of assets such as buildings, vehicles, equipment, stadiums and roads. However, statistics have indicated that about 60 percent of municipalities are under-insured.

Under-insurance is a major risk, where this situation could spell financial disaster for such municipalities as the insurance cover paid out, could fall well short of the liability incurred – as a result of the damage to, or destruction of assets.

When municipalities claim for damage to assets, where the value the asset was insured for is less than the amount of the claim, the municipality will therefore, be responsible for the shortfall in cover. It is doubtful that they will be in a financial position to cover any potentil losses themselves.

Underwriting of municipal assets is a very technical process. Given that many municipalities lack such expertise, it is possible that many are under-insured. Municipalities should also review the value of their assets on an annual basis.

Municipal authorities and local government requires customized risk solutions that are flexible and comprehensive. 

Consider those products that are backed by experts to mitigate risks and offer services such as risk management surveys and improvement strategies. A big plus, may be services offered in order to train municipal staff on their contribution towards better risk management.

Being a specialist niche area of insurance, all available product options should be considered, where these options may be confusing...

DIB Solutions (Pty) Ltd have partnered with reputable underwriters and various insurance companies in order to assist our clients with appropriate Insurance cover – we can therefore also assist clients with tailor-made products (where applicable) at competitive premiums. We provide a professional and personal service, as well as build long-term relationships with our clients. Discuss your individual needs with one of our experts.


Also note some of the considerations for Municipal Insurance:

Public Sector products may include:
  • Contractors All Risks (CAR):
  • Fidelity guarantees;
  • Motor -- May include private type vehicles, to specialist or customized;
  • Property -- these may include transformers, Plant, machinery, buildings, etc;
  • Public liability;
  • Theft - eg Money;

Insurance and Risk Management programs my include the following:

  • Auto liability and physical damage;
  • Crime;
  • Employment practices liability;
  • Equipment breakdown;
  • General liability;
  • Law enforcement liability;
  • Public entity management liability;
  • Property;
  • Umbrella;
  • Workers compensation.

Please contact us today for fast, friendly, professional advice and service!

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