Insurance Claims Africa says it is disappointed that Santam will only pay for three months for Covid-19 business interruption policy claims. Stock photo.Specialist public loss adjuster Insurance Claims Africa says it is unsurprised but disappointed by Santam’s decision to settle Covid-19 business interruption claims for a period of three months only.
After seven months of legal wrangling and Santam’s refusal to pay its customers' business interruption claims, the company conceded last week that it was liable.It said the claims in question are those affected by the recent judgment in the Western Cape High Court in the case between the insurer and Ma-Afrika Hotels and The Stellenbosch Kitchen.
In its judgment in November, the court said Santam was liable to indemnify the two businesses in terms of the business interruption section of their insurance policies. The court said the period of indemnity was 18 months. ICA said Santam had indicated it will offer its hospitality and leisure customers a full and final settlement of only three months of losses, despite many policyholders having indemnity periods of six, 12 and 18 months in their contracts with the insurer.
Despite last week's announcement that it will now reassess business interruption claims it previously rejected, Santam said it will appeal the question of the indemnity period at the Supreme Court of Appeal.
Insurance company deals ruthlessly with their “ customers “ claims let’s see what happens in the UK on Friday !
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