In April 2022, the South African Special Risk Insurance Association (Sasria) announced that it had reviewed the classification of agricultural vehicles from an insurance cover perspective. Consequently, the body had agreed to reclassify agricultural implements as special agricultural equipment, with a premium much lower than that under which heavy commercial vehicles were insured.
Under an initial proposal by Sasria, tariffs on agricultural equipment would have increased drastically. Farmer's Weekly point out that, for example, the annual tariff for a vehicle insured for R2 million would have risen by 1 736%, from about R326,78 to R6 000,98. The association had previously placed agricultural vehicles – being tractors, harvesters, sprayers, planters and heavy transport trucks – into the M8 Heavy Commercial Vehicles category.
Naturally, the announcement has been welcomed by agricultural associations and representatives such as Grain SA and Free State Agriculture. The approach by Sasria – that insurers should always endeavour to make their product offering accessible to South Africans and especially in the key sectors such as agriculture – is to be applauded. The risk of stakeholders not being insured as a result of exorbitant premiums would ultimately have a direct and negative impact on all South African consumers.
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