Cost Of Cape Disasters To Exceed Billions

Insurance companies say insurance premiums in the southern Cape are also expected to rise.
Rodger Bosch/AFP/Getty Images

The cost of the fires and storms in the Western Cape over the last week could cost between R3 billion and R4 billion, Business Day reported on Monday.

Insurers say the total cost to the industry could exceed previous disasters, leading to higher insurance premiums in the affected areas.

On Sunday, The Herald reported that calmer weather had brought some relief to fire fighters at Van Stadens Gorge and Rocklands.

A municipal spokesperson, Mthubanzi Mniki told The Herald:

"Teams on site hope that the weather will not change. They are now able to access difficult areas to completely stop the fire. Fire fighters at Woodridge College would also like to confirm that not all the school buildings have burnt to the ground as it was reported in some platforms. Under difficult conditions the team on site at Woodridge managed to save some of the buildings at the school."

According to Business Day, the death toll from the storms and fires along the Southern coast has reached 12, while between 3000 and 4000 people have been displaced in and around Knysna.

Storms in the Western Cape have now calmed, a spokesperson for the Western Cape provincial government told Business Day. In the province, 135 schools and 1000 informal dwellings were reportedly damaged.

Hennie Nortje, head of claims at Old Mutual Insure told Business Day that insurance premiums would probably rise in the southern Cape where the risk of flooding was now higher.

The company had already receive claims worth millions, with initial estimates reaching over R400 million, he said.

By Friday, Hollard had received more than R260 million's worth of claims from the Western Cape storms and floods.

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