As supply uncertainties continue, fuel prices in South Africa are soaring, leading to a rising number of citizens hoarding bulk purchases of petrol.
In response, the South African Insurance Association (SAIA) has sounded the alarm, according to an article on news aggregator IOL. The piece noted the SAIA’s warning regarding the “safety, environmental and insurance risks associated with storing petrol at home”.
Exponential risk
The article highlighted the highly flammable nature of petrol, noting that even a minor spark may lead to catastrophic fires or explosions. Moreover, vapours can “pose serious health hazards”, the article added.
“The dangers of improper petrol storage are immediate and real. In homes where larger quantities of petrol are stored, the risk escalates exponentially,” the article said.
Implications for insurance coverage
According to the article, implications concerning coverage are severe.
“Insurers typically disallow claims arising from illegal or non-compliant activities. Consequently, storing large amounts of petrol can significantly raise the fire risk, escalate the spread and intensity of any ensuing fire, and, in cases of damage, be perceived as contributory negligence,” the article warned.
“Even if a fire originates in an area unrelated to the petrol storage, the presence of fuel can amplify damage, leading to potential rejected claims.”