2020
R'000 		2019
R'000
37. Provisions
Long-term portion 667 672 350 705  
Short-term portion 820 590 332 465  
1 488 262 683 170  
 
Onerous 
contracts 
R'000 		    Business 
integration 
R'000 		    Insurance 
liabilities 
R'000 		    Legal 
claims 
R'000 		    Other 
R'000 		 Total 
R'000 		   
Balance at 1 July 2018  22 597     –     323 703     139 852     44 013  530 165    
Created  16 099     –     171 745     394 048     23 980  605 872    
Utilised  (23 346)    –     (191 127)    (223 301)    (38 592) (476 366)   
Net acquisition of businesses  10 238     –     –     15 954     –  26 192    
Exchange rate adjustments  –     –     –     (2 577)    (116) (2 693)   
Balance at 30 June 2019  25 588     –     304 321     323 976     29 285  683 170    
Created  120 051     373 947     201 257     187 019     43 385  925 659    
Utilised  (21 355)    –     (253 637)    (166 943)    (30 970) (472 905)   
Net acquisition of businesses  24 146     212 533     –     107 596     –  344 275    
Exchange rate adjustments  (2 186)    (19 306)    –     29 199     356  8 063    
Balance at 30 June 2020  146 244     567 174     251 941     480 847     42 056  1 488 262    
 

Onerous contracts

Onerous contracts are identified through regular reviews of the terms and conditions of contracts as well as on the acquisition of businesses. A provision for onerous contracts is calculated as the present value of the portion which management deem to be onerous in light of the current market conditions, discounted using market-related rates.

Business integration

Provisions raised to restructure and re-align the Group's operations to the reduced demand arising during and post COVID-19 lockdown. Included are provisions for retrenchment arising from s189 (of the Labour Relations Act) notice and consultation processes and other provisions necessary to right-size the business to the new post COVID-19 environment (refer note 43 Accounting estimates and judgements for consideration and assessment of assumptions).

Insurance liabilities

Insurance liabilities include amounts provided for under IFRS 4 and include: unearned premiums, which represent the proportion of premiums written in the current year which relate to risks that have not expired by the end of the financial year and are calculated on a time proportionate basis; deferred acquisition costs, which are recognised on a basis consistent with the related provisions for unearned premiums; claims, which are calculated on the settlement amount outstanding at year end; and, claims incurred but not reported, for claims arising from events that occurred before the close of the accounting period but which had not been reported to the Group by that date, and are calculated based on the preceding six years' insurance premium revenue multiplied by percentages specified in the Short-term Insurance Act.

Legal claims

Legal claims include provisions raised under IAS 37 for the estimated cost of claims not covered by the Group's insurance policies and in certain instances for the cost of claims below the Group's inner deductibles. Legal claims have long lead times and the provision is determined using actuarial assumptions.

Other

Included in other is a provision raised for the estimated cost of honouring warranties on certain products sold where the manufacturers' warranty is inadequate or not available, R34 million (2019: R21 million).