Drastic adjustment of SASRIA tariffs totally out of touch with economic realities

Free State Agriculture (FSA) took note with shock and discomfort of a drastic increase in SASRIA tariffs on certain vehicles that will come into effect on 1 February 2022.

The increased tariffs were communicated by way of a letter to SASRIA’s agents and intermediaries during September and October 2021 and could entail a huge adjustment to the SASRIA tariffs applicable to tractors, harvesters, self-propelled sprayers, planters and so on used in the agricultural sector. According to the notice, this drastic increase applies to HCV classified vehicles (heavy commercial vehicles) such as trucks used for commercial freight for a fee.

Francois Wilken, president of FSA, believes that the adjustment can possibly be attributed to the enormous damage done to trucks during the riots in Kwazulu-Natal during July 2021. “The agricultural sector, which has already been exposed to significant economic challenges, especially in the Free State, will simply not be able to afford the rates!”

Examples of the adjustments provided to FSA are as follows:

TYPE AMOUNT INSURED 2021 SASRIA PREMIUM 2022 SASRIA PREMIUM % INCREASE
Tractor R2 800 000.00 R52.61 R966.17 1736%
Tractor R4 270 000.00 R80.18 R1472.37 1736%
Tractor R450 000.00 R8.46 R155.28 1735%
Harvester R4700 000.00 R87.88 R1613.86 1736%
Self-propelled sprayer R4 200 000.00 R78.91 R1469.93 1762%
Planter R1 600 000.00 R30.06 R552.10 1736%
Farm truck R900 000.00 R16.91 R310.55 1736%

If the rationale behind the drastic increase is based on the damage done to commercial trucks transporting cargo for compensation during the July 2021 riot, this unjustified increase which would apply to agricultural equipment which would almost never be exposed to this type of risk, simply does not make sense and the classification of this type of equipment should be re-considered. The often proverbial view of the agricultural sector as a dairy cow cannot be further milked by these unjustified increases.

Drastiese aanpassing van SASRIA-tariewe totaal uit voeling met ekonomiese realiteite

Vrystaat Landbou (VL) het met skok en ongemak kennis geneem van ʼn drastiese verhoging van SASRIA tariewe op sekere voertuie wat op 1 Februarie 2022 in werking gaan tree.

Die verhoogde tariewe is by wyse van ʼn skrywe aan SASRIA se agente en tussengangers gekommunikeer gedurende September en Oktober 2021 en kan ʼn geweldige aanpassing meebring aan die SASRIA-tariewe van toepassing op trekkers, stropers, self aangedrewe spuite, planters ensovoorts wat in die landbousektor gebruik word. Dié drastiese verhoging is volgens die kennisgewing van toepassing op HCV geklassifiseerde voertuie (swaar kommersiële voertuie) soos vragmotors wat vir kommersiële vragvervoer teen vergoeding gebruik word.

Francois Wilken, president van VL, meen die aanpassing kan moontlik toegeskryf word aan die geweldige skade wat aan vragmotors aangerig is tydens die oproer in Kwazulu-Natal gedurende Julie 2021. “Die landbousektor, wat alreeds veral in die Vrystaat aan wesenlike ekonomiese uitdagings blootgestel is, sal eenvoudig nie die tariewe kan bekostig nie!”

Voorbeelde van die aanpassings wat aan VL voorsien is, as volg:

TIPE BEDRAG VERSEKER 2021 SASRIA PREMIE 2022 SASRIA PREMIE % VERHOGING
Trekker R2 800 000.00 R52.61 R966.17 1736%
Trekker R4 270 000.00 R80.18 R1472.37 1736%
Trekker R450 000.00 R8.46 R155.28 1735%
Stroper R4700 000.00 R87.88 R1613.86 1736%
Self aangedrewe Spuit R4 200 000.00 R78.91 R1469.93 1762%
Planter R1 600 000.00 R30.06 R552.10 1736%
Plaasvragmotor R900 000.00 R16.91 R310.55 1736%

Indien die rasionaal agter die drastiese verhoging gebaseer is op die skade wat aangerig is aan kommersiële vragmotors wat vrag teen vergoeding vervoer het tydens die Julie 2021 oproer, maak hierdie ongeregverdigde verhoging van toepassing op landbou toerusting wat bykans nooit aan hierdie tipe risiko blootgestel word nie, net eenvoudig nie sin nie en moet daar anders besin word oor die klassifikasie van hierdie tipe toerusting. Die dikwels spreekwoordelike beskouing van die landbousektor as ʼn melkkoei kan nie hierdeur verder gemelk word nie.