Santam to ‘consider’ appeal ruling on lockdown claims
Londiwe Buthelezi - Santam says it is going to consider the South African Supreme Court of Appeal (SCA) judgement against Guardrisk and assess its potential impact on the insurer’s own appeal case.
On Thursday, the SCA dismissed Guardrisk’s appeal against the Western Cape High Court, which had ordered the insurer to pay Café Chameleon’s business interruption claim in July.
Santam had also been ordered by the court to pay its clients, Ma-Afrika Hotels and Stellenbosch Kitchen’s claims, but it announced that it would be taking the same route as Guardrisk and appeal the matter at the SCA.
On Friday, South Africa’s biggest short-term insurer said because matters involving business interruption insurance are complex, there were differences between its and Guardrisk’s case to consider and it also wanted to discuss the implications of the Guardrisk judgment with its reinsurers.
SUSPENDED
For now, the fact that Santam has applied for leave to appeal its case means that the Western Cape High Court judgment, which said it must pay 18 months’ worth of Ma-Afrika and Stellenbosch Kitchen’s losses, remains suspended, the insurer said.
Other insurers in South Africa and around the world has been battling with clients over its rejection of claims related to the impact of the pandemic on their businesses.
In South Africa, insurers argue that national lockdowns to stem the virus' spread, forcing firms across many industries to shutter for weeks at a time, were not covered under their business interruption policies. – Fin24/Nampa/Reuters
On Thursday, the SCA dismissed Guardrisk’s appeal against the Western Cape High Court, which had ordered the insurer to pay Café Chameleon’s business interruption claim in July.
Santam had also been ordered by the court to pay its clients, Ma-Afrika Hotels and Stellenbosch Kitchen’s claims, but it announced that it would be taking the same route as Guardrisk and appeal the matter at the SCA.
On Friday, South Africa’s biggest short-term insurer said because matters involving business interruption insurance are complex, there were differences between its and Guardrisk’s case to consider and it also wanted to discuss the implications of the Guardrisk judgment with its reinsurers.
SUSPENDED
For now, the fact that Santam has applied for leave to appeal its case means that the Western Cape High Court judgment, which said it must pay 18 months’ worth of Ma-Afrika and Stellenbosch Kitchen’s losses, remains suspended, the insurer said.
Other insurers in South Africa and around the world has been battling with clients over its rejection of claims related to the impact of the pandemic on their businesses.
In South Africa, insurers argue that national lockdowns to stem the virus' spread, forcing firms across many industries to shutter for weeks at a time, were not covered under their business interruption policies. – Fin24/Nampa/Reuters
Comments
Namibian Sun
No comments have been left on this article