Complaints relating to damages caused by power surges increasing: Ombudsman

As Eskom’s energy crisis plunges the country into darkness the fluctuating stages of rolling blackouts are having a devastating impact on consumers. The Ombudsman for Short-Term Insurance says complaints relating to damages caused by power surges have been steadily increasing from 3% in 2018 to 16% in 2021.

According to several insurance experts, power surge-related insurance claims have nearly doubled over the past years but not all claims are successful.

This comes after Eskom launches its power purchase programme to secure 1000 megawatts in an attempt to reduce the rolling blackouts that have been making the lives of ordinary South Africans difficult and causing damage to the economy.

Eskom Blackouts I Homeowners endure unexpected costs as power surges damage domestic appliances:

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A Litigation Attorney and Senior Associate at the law firm Adam and Adams, Mtho Maphumulo, says there has been a spike in the number of claims being rejected by insurance companies.

“So it is important that in an instance where your claim was rejected. You previously consider the basis for rejection and I always advise that people should seek where possible legal advice because of these policies themselves. They are legal instruments, so you may find that your rejection is based on some legal grounds. So for you to challenge those, you also need some legal arguments,” says Maphumulo.

Short-Term Insurance Ombudsman reveals that power-surge complaints have increased significantly over the last four years:

Additional reporting by Hoosen Ebrahim

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Source: SABC News (