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Insurance company Santam to appeal Covid-19 insurance ruling...

One of the biggest insurance companies in the country Santam has now stated that it plans to appeal the decision made by the high Court, the ruling is that if a client launch a claim related to Covid-19 lockdown must be granted, it seems as though Santam does not agree with the ruling.

Now the company has revealed that the matter is now under appeal and the final judgment is expected later this year or early next year.

The company believes that Western Cape high Court did not really look at things such as causation and insured peril, trends clause and also indemnity period, as a result the company wishes to appeal the ruling.

Santam believes this move will limit the net cost of the contingency business interruption claims, the factor being that extention of the reinsurance recoveries will heavily depend on the response of the reinsurer on the outcome of the legal process.

The company due to the ruling, has been ordered to pay two hospitals for business interruptions and Santam claim this will potentially help the companies recover all their losses in the name of Covid-19 pandemic.

The high Court agreed with the ruling of the United Kingdom financial Conduct Authority, when it comes to business interruption claims due to Covid-19 lockdown and did order Santam to pay Ma-Afrika Hotels and Stellenbosch Kitchen for losses of 18 months period.

This came in as another RSA insurance company Guardrisk appealing the ruling made against the company in a similar issue, and that may be used by other insurance companies to finalize the treatment of Covid-19 related business interruption claims.

There has been many companies in the country rejecting multiple claims related to Covid-19, some companies have claimed that Covid-19 pandemic is not an insurance event.


Source: Santam.com

Content created and supplied by: @john_emjay (via Opera News )

Covid-19 RSA Santam United Kingdom Western Cape

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