Santam holds on to cash amid legal battle over business interruption claims

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The group has opted not to declare an interim dividend amid the lockdown fight

Short-term insurer Santam has opted to hold on to its interim dividend as it continues a legal battle over business disruption claims following the Covid-19 lockdown.

Santam has appealed an application brought against it in the high court in Cape Town by Cape-based hotel group Ma-Afrika Hotels, and is awaiting a ruling. Should the courts ultimately rule in Santam’s favour and determine that the lockdown is not an insured peril, then the amount paid will still be considered relief payments in respect of registered claims to policyholders and will not be recovered from policyholders, the group said.

 

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