Claimants’ case against Santam heads to court

THE case for the business interruption claims against insurance company Santam is expected to be heard next week.

Insurance Claims Africa (ICA) CEO Ryan Woolley said: “The tourism industry has been the hardest hit during this lockdown and the losses are catastrophic. The insurance companies have only offered narrow cover. Since this, many businesses have come forward for assistance such as restaurants and accommodation. This sector employs 740 000 direct jobs and contributes to the GDP.”

Woolley said the insurers have bought themselves time and offered relief payments.

“Out of the 700 clients we represent, only 200 are getting benefits. Santam have excluded all of our large claimants, these businesses are the ones who employ communities and this funding is drying up.”

Woolley said rejected claims were affecting the tourism and hospitality sectors, with hundreds saying they should be covered under “business interruption”.

ICA has joined forces with hospitality group Ma-Afrika Hotels in their litigation against Santam, which is due to be heard in the Western Cape High Court, next week Tuesday.

Last month it emerged that Santam had rejected a business interruption settlement proposal from more than 400 tourism and hospitality operators, relating to the Covid-19 pandemic. Santam has denied it.

In court papers citing Ma-Afrika and Stellenbosch Kitchen as applicants, Santam admits that Covid-19 was a “Notifiable Disease”. It continues, Santam tries to separate the “Notifiable” from the “Disease”.

It argues “the worldwide spread of Covid-19 and the restrictions imposed by the South African government, including the lockdown caused the applicants’ losses, not Covid-19”.