Santam must pay 18 months (not three) in Covid-19 business interruption claims

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The country’s largest non-life insurer, Santam, has lost its bid to pay its clients just three months’ worth of pandemic-related losses.

The judgment ordered the insurer to pay the companies for the effect of the pandemic over the entire policy period of 18 months, without limitations.

Santam Group’s CEO, Lizé Lambrechts, said on Thursday the insurer was “very pleased” that the judgment “allows” the company “to proceed to finalise all impacted CBI claims as soon as possible”. The judgment affects less than a third of the 3,200 notified business interruption claims, Lambrechts, said. The company had already paid more than R2.1bn in those claims, she said, including R1bn in interim relief to about 2,500 businesses in August 2020.

 

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