Santam must pay virus insurance claim

The insurer and South African rivals had argued lockdowns were not covered under their business interruption policies.

19 November 2020 | Business

JOHANNESBURG - South Africa's Santam said yesterday it was considering a court ruling that found it should pay a coronavirus-related claim it had rejected, which sent it shares down over 4%.

Like peers around the world, Santam, South Africa's largest non-life insurer, has been fighting with some clients after it resisted paying claims related to the impact of coronavirus lockdowns on their businesses.

The insurer and South African rivals had argued lockdowns were not covered under their business interruption policies. But a court on Tuesday found that it was liable to pay claims made by one client, a hotel group, in a closely watched case seen as key to establishing insurers' obligations.

Santam said the complex judgement required careful consideration, and it would discuss it with all stakeholders, including its reinsurers, before responding.

Global reinsurers have also declined to pay out in such cases. Santam said their response was "important in helping to reach finality on this matter", and it would seek to do so as quickly as possible.

‘6 to 7 BILLION’

Santam has already paid R1 billion to affected clients in the form of interim relief, intended to tide them over while court cases play out. These payments will be deducted from any further pay out made to the clients.

It has raised a provision to cover its "best estimate" of exposure to the relevant policies.

Insurance Claims Africa (ICA), which represents more than 750 clients who have had claims rejected, is reassessing the value of their claims based on Tuesday's ruling, because this found Santam was liable for the full indemnity period of 18 months, rather than less. - Nampa/Reuters

Similar News

 

COMPANY NEWS IN BRIEF

1 day - 27 November 2020 | Business

Exxon and Total in talks ExxonMobil and Total are in negotiations over their massive LNG projects in Mozambique, with each seeking to extract more gas...

Election campaigns boost business

2 days ago - 26 November 2020 | Business

Ndalimpinga Iita - At his business premises in the northern part of Namibia, entrepreneur John David handles various branded promotional items including T-shirts, caps and...

Construction takes plight to MPs

4 days ago - 24 November 2020 | Business

The Construction Industries Federation of Namibia (CIF) recently hosted a series of five business breakfast briefings for members of parliament (MPs). In total, 45 members...

Medical aid shows Covid symptoms

4 days ago - 24 November 2020 | Business

The average claims per medical aid fund beneficiary in Namibia in the first three months of this year was nearly 28% more than in the...

Oshikuku entrepreneur launches biogas production

4 days ago - 24 November 2020 | Business

Parliamentarian, Modestus Amutse launched the Thikamapo Biogas Farming, a small-scale renewable energy entrepreneurial project that aims at driving Namibia to self-reliance in energy production at...

Black Friday madness continues

4 days ago - 24 November 2020 | Business

Julienne van Rooyen - Black Friday is just a few days away, and this year we can probably predict that there will be stricter measures...

COMPANY NEWS IN BRIEF

4 days ago - 24 November 2020 | Business

Prosus' HY earnings surge 29%Technology investment company Prosus NV said yesterday core earnings for the six months ended Sept. 30 surged 29% to US$2.2 billion,...

Company news in brief

4 days ago - 24 November 2020 | Business

Prosus' HY earnings surge 29%Technology investment company Prosus NV said yesterday core earnings for the six months ended Sept. 30 surged 29% to US$2.2 billion,...

Half-a-billion SME loan scheme launched

5 days ago - 23 November 2020 | Business

PHILLEPUS UUSIKU – Government, in partnership with four participating commercial banking institutions and with the financial support of the Bank of Namibia (BoN), on Friday...

Programme for women entrepreneurs launched

5 days ago - 23 November 2020 | Business

The Academy for Women Entrepreneurs Programme in Namibia was officially launched last week by United States Ambassador to Namibia, Lisa Johnson.Johnson said the programme was...

Latest News

Kenya's economic growth to rebound...

1 day - 27 November 2020 | Economics

Duncan MiririKenya's economic growth is expected to bounce back next year, the World Bank said on Wednesday, as it emerges from a projected decline in...

Man kills, buries his partner

1 day - 27 November 2020 | Crime

TUYEIMO HAIDULAOKATANAA 36-year-old man has been arrested in connection with a body discovered on Wednesday at Omayanga village in the Okatana Constituency, Oshana Region. The...

Swapo holds on by fingernails

1 day - 27 November 2020 | Politics

TOIVO NDJEBELAWINDHOEKSwapo continued from where it left off with its downward spiral in last year's election by having its hold onto key constituencies and local...

Iipinge taps out

1 day - 27 November 2020 | Politics

JEMIMA BEUKESWINDHOEKOutgoing Walvis Bay Urban constituency councillor Knowledge Iipinge, who has conceded to Independent Patriots for Change (IPC) candidate Florian Donatus Tegako, says his work...

Nigerians to slide into further...

1 day - 27 November 2020 | Economics

Camille Malplat and Louise Dewast More than 200 million Nigerians will slide further into poverty as the coronavirus pandemic has sent oil prices tumbling and...

Hit the ground running

1 day - 27 November 2020 | Opinion

At the time of penning this down yesterday, the tabulation of election results was still under way. It didn’t look like a good day at...

Auto Sueco gunning the future...

1 day - 27 November 2020 | Politics

OGONE TLHAGEwindhoekFrom its humble beginnings in 2004, Auto Sueco Namibia is now a reckoned force in the Extra heavy and heavy commercial vehicle market with...

Ivory Coast raises 1 billion...

1 day - 27 November 2020 | Economics

Ivory Coast's Eurobond sale this week, sub-Saharan Africa's first of the pandemic era, raised 1 billion euros (US$1.19 billion) and was five times oversubscribed, the...

Open defecation remains a problem

1 day - 27 November 2020 | Health

ELLANIE SMITWINDHOEKIt is estimated that 14% of Namibians living in urban areas practise open defecation, while 77% of people living in rural areas do the...

Load More