insurance claims against eThekwini municipality for power outages

As a result of recent power outages in the Bluff, Woodlands and Montclair areas, many residents lost perishables that had been refrigerated and are now seeking compensation from the Municipality for their losses. Any person may lodge a claim against eThekwini Municipality for a loss or damage that he has allegedly suffered as a result of wrong doing on the part of the Municipality.

For any claim to be successful, a claimant has to prove negligence on the part of the Municipality which resulted in the loss or damage. In nearly all cases, the interruption in power supply is occasioned by factors beyond the control of the Municipality and is not as a result of negligence.

How Self-Insurance Reserve for eThekwini Municipality Works

EThekwini Municipality operates a self insurance scheme which is aligned with the best practices in the insurance industry. It covers the assets and liabilities of the Municipality subject to all the relevant laws of the country and Municipal policies, regulations as well as by-laws.

The Self insurance scheme was never intended to be a substitute to cover risk of loss/damage to any ratepayer's personal property. It is expected that ratepayers will procure their own personal insurance covers to protect their property and other assets.

Investigation Reports

Before any claim is settled, a full technical investigation report has to be completed in respect of the circumstances that led to the interruption of electricity supply. This report determines whether or not there has been negligence on the part of the Municipality. If the findings show there has been such negligence, subject to specific conditions, the Municipality will have to compensate those who suffered losses or damages.