Ryan Woolley, CEO of specialist public loss adjuster Insurance Claims Africa - which represents scores of hotels and restaurants which had contagious diseases specified in their business interruption policies - called Santam’s decision “unconscionable”, given that many policyholders had indemnity periods of six, 12 and 18 months stipulated in their policies.
“The problem for Santam is that they have a judgment against them in the Ma-Afrika [high court] matter, which orders the insurer to pay for the full indemnity period of 18 months,” Woolley said. “Offering three months in full and final settlement, and forcing their customers to sue them for the balance, is grossly unfair and unconscionable. It suggests it is no longer legal certainty that Santam seeks, but that it is in fact trying to take advantage of vulnerable clients who are desperate for funding.”