Toyota insurers sue eThekwini Municipality, Department of Transport, and Transnet
ETHEKWINI - Kwazulu Natal is facing a landmark court case. Toyota South Africa operates in the province.
Toyota's insurer, Tokio Marin and Nichido Fire Insurance has reportedly filed a R6.5 billion lawsuit in the Durban High Court against the Department of Transport in the Province, Transnet and the eThekwini Municipality.
It wants to be compensated for the enormous financial losses it suffered due to infrastructure failures of various government and state role players in 2022 during floods.
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The Citizen
14 hours ago
- The Citizen
Toyota's Japanese insurer files R6.5b lawsuit against KZN government
TOYOTA South Africa Motors' (TSAM) Japan-based insurer, Tokio Marine and Nichido Fire Insurance Co. Ltd, is suing the KZN Department of Transport (DoT), Transnet and the eThekwini Municipality for R6.5b for the unprecedented damages faced by Toyota's Prospecton branch following the devastating April 2022 floods. Also read: Floods hit Prospecton industries hard The insurer filed a summons in the Durban High Court against the three defendants, with the plaintiff's court papers stating the defendants had failed in their duties of maintaining the key infrastructure meant to safeguard the Prospecton Industrial Area from flooding. It is stated within court papers that Transnet owned the Umlaas Canal and was therefore responsible for its maintenance, management, and responsible handling of the flood risk associated with it. The canal, which is lined with concrete, channels and diverts the Umlazi river around the Prospecton Industrial Area. Together with the diversion berm, which falls on the Department of Transport to maintain and manage, it forms a vital part of the flood control and prevention for the area. In addition, it states responsibility for the stormwater management system falls on the eThekwini Municipality. 'As a result of these failures, Toyota was compelled to engage various contractors to repair the damage caused by the flooding and hired specialist engineers to repair the structural damage to the premises, as well as damage to electrical installations, plumbing, air-conditioning and assembly systems,' it said. The damages, which amounted to over R6.5b, included almost R4.5b for the costs incurred during the repair and reinstatement of the premises and property, and over R2b for the losses incurred during business interruption. Also read: KZN floods listed in top 10 costliest climate disasters of 2022 MEC of the KZN DoT, Siboniso Duma, engaged with president and CEO of TSAM, Andrew Kirby on June 20. He said, 'We have agreed to sustain our relationship. We will do that in the interest of the people of KZN and the whole country. Over the years, we have worked well with Kirby and executive vice president of TSAM, Nigel Ward, manufacturing, and Toyota. We agreed that nothing should come between us and this enduring relationship. The current litigation is not being facilitated or funded by TSAM, and it does not benefit in any way from the subrogated recovery action against us. We have no doubt that Toyota will continue to be the most preferred brand in the country. One cannot over emphasise the contribution the motor car industry had made to our economy.' eThekwini Municipality spokesperson Gugu Sisilana said the municipality was aware of the court action and had filed a notice to defend. Transnet's media desk issued a brief response, saying it is aware of the litigation initiated by Toyota insurers and has filed a notice to defend. It further stated that given the early stages of the case, it would be premature to offer further substantiation. The April 2022 floods Following the trail of carnage left by the April 2022 floods, heavy rainfall and landslides in KZN, President Cyril Ramaphosa declared a national state of disaster. Toyota's Prospecton plant was ravaged by the floods, and the business was left with around 4300 flood-damaged vehicles, nearly 90% of the cars on site. The automotive giant reported that over 100 000 new equipment parts needed replacing. Astonishingly, after three months of intense repairs and support from the company's Japanese head office, production resumed in August 2022. Following this, TSAM invested over R200m to prevent disasters of similar magnitude going forward, and over R100m was dedicated to establishing monitoring and maintenance systems to proactively guard against water ingress. These included an early-warning weather monitoring system, construction of perimeter canals, and significant upgrades to the site's stormwater network. An additional R128m was spent on internal interventions to protect the facility even if external systems failed. These included bund walls around critical infrastructure and raised doorways to reduce vulnerability to flooding. For more South Coast Sun news, follow us on Facebook, Twitter and Instagram. You can also check out our videos on our YouTube channel or follow us on TikTok. Subscribe to our free weekly newsletter and get news delivered straight to your inbox. Do you have more information pertaining to this story? Feel free to let us know by commenting on our Facebook page or you can contact our newsroom on 031 903 2341 and speak to a journalist. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
eNCA
a day ago
- eNCA
Toyota insurers sue eThekwini Municipality, Department of Transport, and Transnet
ETHEKWINI - Kwazulu Natal is facing a landmark court case. Toyota South Africa operates in the province. Toyota's insurer, Tokio Marin and Nichido Fire Insurance has reportedly filed a R6.5 billion lawsuit in the Durban High Court against the Department of Transport in the Province, Transnet and the eThekwini Municipality. It wants to be compensated for the enormous financial losses it suffered due to infrastructure failures of various government and state role players in 2022 during floods.
Eyewitness News
a day ago
- Eyewitness News
KZN Transport Department says relationship with Toyota remains intact despite R6.5 billion lawsuit
JOHANNESBURG - The KwaZulu-Natal Transport Department says its relationship with Toyota remains intact despite the motor giant's insurer suing the provincial government for R6.5 billion. Tokio Marine and Nichido Fire Insurance recently filed a lawsuit at the Durban High Court, seeking compensation for damages suffered at Toyota's Prospection Plant during the 2022 floods. Following a meeting with Toyota's senior managers, the Transport Department held a media briefing on Friday to update on the lawsuit. During the 2022 floods, Toyota's Prospection Plant in Durban was forced to shut down for four months, with its cars and machines submerged in water. This led to Toyota claiming billions from its Japanese insurer Tokio Marine and Nichido Fire Insurance. The insurer is now seeking to recoup that money and has lodged a subrogated claim against the KZN Transport Department, Ethekwini Municipality and Transnet. Transport MEC Siboniso Duma says he met with Toyota officials today to clear the air. 'We agreed to sustain our relationship that has revolved over the years, we will do that in the interest of the people of KZN and the whole country. I am sure you know as the private sector they are a major employer in the province of KZN.' Meanwhile, Toyota South Africa Motors says it's not directly involved in the lawsuit and won't benefit even a cent if the Japanese insurer wins.
