Toyota’s insurer, Tokio Marine & Nichido Fire Insurance, has filed a R6.5 billion lawsuit against the KwaZulu-Natal provincial government, Transnet, and the eThekwini Municipality over damages caused to the Prospecton plant during the 2022 floods.
Toyota South Africa Motors’ (TSAM) insurer claims that the factory suffered extensive damage because the flood prevention infrastructure was not properly maintained.
According to court papers, out of the R6.5 billion claim, R4.5 billion is sought for repairs and reconstruction, while R2 billion is claimed for business interruption losses.
Although TSAM is named as the official plaintiff, it is actually Tokio Marine & Nichido Fire Insurance that is actively pursuing the case.
The court documents state that the flooding occurred because the Umlaas Canal and the surrounding berm failed to perform their functions. According to the claim, Transnet was responsible for operating and maintaining this concrete-lined canal. The Department of Transport was supposed to ensure the berm’s functionality, and the municipality was responsible for maintaining the stormwater system.
As a result of this negligence, Toyota suffered direct damage. The flood caused severe harm to the plant’s electrical, mechanical, and IT systems.
Approximately 88% of the vehicles on-site—about 4,300 cars—were damaged beyond repair. Additionally, Toyota had to place orders for over 100,000 new parts to replace the damaged ones.
This loss is considered the largest damage ever sustained by a Toyota production facility worldwide.