A Gauteng businessman says he has been left in the lurch by his insurance of over 10 years after his bottle store and eatery were looted during the hard lockdown last year.
Essop Galieb is now seeking justice after his insurer repudiated his claim to cover the losses he suffered.
In its defence, the insurance company, AIG, claims Galieb’s alarm system had not been operational at the time of the incident and that the looting was never reported in the media. They company has not paid out the claim.
Galieb, 55, of Grasmere, south of Johannesburg, lost his bottle store and shesanyama, which are situated inside the Grasmere railway station, in June last year. He has been paying R1,200 monthly premiums.
“Because the alcohol ban was in place, I was at home and even my workers had taken time off. So, no one was at the shop. It was locked,” he told Sowetan.
Galieb said a community member called and told him his shop had been vandalised. “My heart was torn apart because I was told that the shop was looted during the early hours of the morning and I lost everything.”
When Galieb arrived at his shop his furniture, including refrigerators, speedpoint machines, stoves, shelves, deep-frying machine and a jukebox – all valued around R605,000 – were gone. He then opened a case with the police.
He said his shop was the only one looted at the train station and that AIG was sending him from pillar to post.
“I was treated like a crook and asked all intimidating questions. I was asked why the incident was not published in the local newspaper because the riots and looting were a big thing [then]. I was further told that there was no way my equipment and furniture [could] cost close to a million [rand],” Galieb said.
He said he was stressed and frustrated because the shop was his main source of income. “My business was very profitable. I made about R80,000 on a good month and minimum of about R30,000 on a quiet month. I don’t know what to do now because my main source of income has been taken away from me. I have been paying insurance for years and they have thrown me out in the cold,” he said.
AIG insurance confirmed that Galieb was covered for fire, theft and natural disaster damages. Sashi Chiba, an AIG broker who was processing Galieb’s claim, said the insurance company did not believe his story.
“If there were riots and the station was looted, it would have been published in the media and local newspaper. Who would want to just pay out a claim of over R500,000 over lootings?” she asked.
Chiba said the claim was investigated, however, the outcome was inconclusive because of circumstantial evidence.
AIG senior manager Wendy van Den Heever said: “We sought to undertake an investigation, which established that Mr Galieb’s business was not secured by an operational alarm system at the time of the incident.
"We note that you have made reference to the lack of power during the time of the theft, we have obtained written confirmation from Mr Galieb’s contracted security company, which stated that the radio/transmitter linked to the premise had not been active since 2018.”
She added that Galieb was required to ensure that the premise is protected at all times by a monitored radio alarm that is connected to an armed response and that the alarm is properly maintained.
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