RAND REVOLT DAMAGE

Southland Times, Issue 19516, 16 May 1922, Page 6

RAND REVOLT DAMAGE

HEAVY INSURANCE CLAIMS. LLOYDS HOLD MOST RISKS. FORDSBURG AND BENONI The local agents of Lloyds had a very busy time during January with riot insurance business, says a Johannesburg Star of March 23. From the day the strike on the gold mines began until the end of the month, the business was very brisk. Rates then for a three months’ cover were 2/6 for dwellings, 5/- for shops and 10/- for hotels, bars, restaurants, cafes, grocers’ and butchers’ shops and the like. The strike proceeded so peacefully and quietly for a Rand strike during February that the anxiety of the property owners were somewhat dispelled and riot insurance business quietened down. After the first week .in March came the general strike declaration, the Red revolutionary movement and the proclamation of martial law, pud there was a rush to protect properties during the eventful week which ended on Saturady, March 11. Rates had been exactly doubled, but the business came in fast and the agents worked under great pressure. Matters were looking so grave during the Black Friday and Saturday of that week that Lloyds decided that they were carrying enough risks at the figures. On the following /Tuesday, the day when Fordsburg was evacuated by the women and children and its Red citadel was attacked and fell, instructions were received that further business could be taken for a months’ cover at 30/for dwelling houses, 45/- for shops and 60/for hotejft grocers’ shops, etc. Before this could be made generally known, however, it was understood everywhere that the Red revolution was doomed. Public confidence was restored and consequently very little riot insurance business was transacted at these higher rates. And now the claims are pouring in. In riot insurance business the companies who take the risks often score heavily, but in this instance Lloyds are likely to be considerable losers, though it is too early yet to make a definite statement on the point.

It is believed the bulk of the claims have already been gent in. There are very many of them, the majority being for loss by looting and damage from bombs, gun fire and rifle fire. One authority estimates that the total claims will amount to something between £200,000 and £250,000 of which Lloyds are responsible for perhaps 90 per cent. Most of the claims come from Fordsburg and Benoni. The largest individual claim on the Rand is, we believe for £25,000. The opinion, was expressed in .one quarter that Fordsburg sustained more damage than Benoni. Claims are still coming in, but they are apparently the last trickle. The assessors, who are settling claims, have been very busy men indeed during the past few days. Probably after this experience there will be an increase in solid normal business for the protection of property, and no doubt attractive offers will be forthcoming of 12 months’ cover at a moderate rate, which will induce most large firms to have their properties constantly insured against riot. Indeed, inquiries in this direction have been received during the present week.