Sasria has reclassified agricultural equipment in terms of insurance coverage – Laws and insurance products

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In April 2022, the South African Special Risks Insurance Association (Sasria) announced that it has reviewed the classification of agricultural vehicles from the point of view of insurance coverage. As a result, the organization had agreed to reclassify agricultural tools as special agricultural equipment, with a much lower premium than that under which heavy utility vehicles were insured.

According to a first proposal from Sasria, the tariffs on agricultural equipment would have increased drastically. The Farmers’ Weekly point out that, for example, the annual price of a vehicle insured for R2 million would have increased by 1,736%, from around R326.78 to R6,000.98. The association had previously classified agricultural vehicles – tractors, harvesters, sprayers, seeders and heavy haul trucks – as M8 heavy-duty vehicles.

Naturally, the announcement was well received by agricultural associations and representatives such as Grain SA and Free State Agriculture. Sasria’s approach – that insurers should always strive to make their product offering accessible to South Africans and particularly in key sectors such as agriculture – is to be welcomed. The risk of stakeholders going uninsured due to exorbitant premiums would ultimately have a direct and negative impact on all South African consumers.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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