CGF ARTICLES, OPINIONS & EDITORIALS
Eskom’s woes present opportunities for criminals (2015-01-27)
February 20,
2015 9896 9896 
Advertorial by Aon South Africa and CGF Research Institute (Pty) Ltd
Are you prepared for rolling power outages?
The growing constraints on South Africa’s power grid makes load shedding an unwelcome reality that many households and businesses will have to contend with during 2015.
While this has many implications, one of the most concerning is the fact that power outages compromise safety and security.
In an extended outage, the battery back-up on security equipment such as automated gates and fences, alarm systems, security cameras and outdoor motion passives may well run out before power is restored. The fact that automated gates are not operational presents a further complication during load shedding, in that armed response companies are most often unable to gain access to the premises.
Many criminals are capitalising on the situation, utilising the planned load shedding schedule to plan burglaries or robberies. You could well find yourself holding the short end of the stick in such an event, particularly if your insurance coverage terms don’t specifically provide for circumstances that are beyond your control.
According to Mandy Barrett of insurance brokerage and risk advisors, Aon South Africa, consumers may find their claims rejected by insurers if their security system is not functional and they experience a burglary or break-in during a power outage. “This may well be the case on some insurance programmes, especially where the policyholder has not interrogated the implications of the terms and conditions of their cover. This is where the true value of having a professional broker in your corner comes to bear. A professional broker can add tremendous value in the advice process and guide you towards a thorough understanding of the terms and conditions of your cover, pointing out terms in a policy that applies onerous or unreasonable limitations. Unfortunately though, most people only discover the pitfalls of the D-I-Y approach to insurance at claims stage, when it’s too late,” says Mandy.
As part of your preparations for load shedding, it’s essential to check with your insurer exactly what your policy covers you for should you have a claim as a result of a power failure. Power surges that bring about a sudden change in voltage can affect computers and electronic equipment that may cause damage. Not to mention the spoilage of foodstuffs during extended power outages. If you are unsure, engage the services of a professional broker who is equipped to guide you through the process in order for you to understand the cover and limitations that you have on your insurance policy.
