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Santam to start assessing some rejected Covid-19 claims

Following recent court rulings.
Image: Moneyweb

Insurer Santam will begin assessing payouts for some previously rejected coronavirus-related claims after recent court judgments on such cases but still intends to challenge one finding against it.

Like other insurers around the world, Santam had rejected some business interruption claims related to coronavirus lockdowns.

Read:
Santam fails to get Guardrisk’s Café Chameleon appeal postponed (24 Nov 2020)
Old Mutual Insure the latest loser in Covid-19 claims battle (26 Nov 2020)
Massive Covid-19 blow for insurers: Guardrisk loses Supreme Court appeal (17 Dec 2020)

While it said it would respect court rulings that found insurers should payout on such claims, it added that it would challenge a recent finding that it was liable for an indemnity period of 18 months in a case brought by hotel group Ma-Afrika.

Read: Ma-Afrika wins court battle against insurance giant Santam (18 Nov 2020)

“The company believes there are valid reasons to appeal the judgment … in the Ma-Afrika case with respect to the indemnity period,” it said of the closely watched case.

“The company will therefore continue with its application for leave to appeal the Ma-Afrika judgment … specifically with regard to the indemnity period.”

Santam believes the indemnity period should be limited to three months.

The insurer said the outcome of this case meant the financial impact of its decision to pay out was uncertain.

Santam has so far raised R3 billion to cover such liabilities, R1.3 billion of which has already been paid out in the form of interim relief to affected clients.

The company’s shares were down 0.3% at 13:40.

Read: Santam has now paid out R506m in business interruption claims (Aug 2020)

COMMENTS   1

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I imagine that Santam is liable for as long as they collect premiums for that clause????? I know that they unilaterally cancelled cover 1 July 2020 on clients that had instituted claims. not sure they cancelled with clients in industries that can’t claim… :/ A judge would take a very dim view on such an action.

End of comments.

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