Santam commits N$ 30 million

Urgent relief is for clients

29 July 2020 | Business

We decided to assist with a substantial contribution to help sustain our policyholders. Franco Feris, chief executive officer: Santam Namibia.

Santam Namibia has committed N$ 30 million to clients with Contingent Business Interruption (CBI) extensions in their policies who have incurred losses due to Covid-19.

The urgent relief is for clients in the hospitality, leisure and non-essential retail services industries that have CBI cover, Santam said in a media statement issued on Monday.

“We understand that the pandemic has caused devastation on individuals, businesses and the overall economy. Therefore, we decided to assist with a substantial contribution to help sustain our policyholders in the most impacted industries,” Santam Namibia chief executive officer Franco Feris said.

The aim of the relief payment is to support policyholders who are in financial distress and does not serve as indemnity under a policy contract, it said.

The N$ 30 million disbursements are equal to 70 per cent of one month’s value of the sum insured for Santam’s policyholders in the identified industries.

The one month is indicative of the period where most businesses were impacted by the restrictive trading environment imposed by Namibia’s stage one lockdown due to the Covid-19 outbreak.

The 70 percent is based on a view that the businesses would have experienced variable expense savings during the lockdown.

The relief payments will be set at a minimum of N$ 25 000 and a maximum of N$ 1.5 million for individual CBI policyholders.

“As Santam we pride ourselves on being a responsible and patriotic corporate citizen. Over our 60-year-old history, we have built a reputation of always acting with integrity and in the best interests of our clients and stakeholders,” Feris said.

He added that the insurer has to date also contributed more than N$ 20 million in Covid-19 funding to provide relief through premium reductions, premium refunds as well as direct support to insurance industry business partners, corporate social responsibility and government initiatives. - Nampa