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“We remain confident in our interpretation of our policy wording as it pertains to the CBI extension in our cover. However, we also realize that our clients need financial support urgently and that the ongoing court cases on the interpretation of the policy wording may be lengthy,” said Lize Lambrechts, CEO of Santam, in a statement.

Virus-hit businesses in South Africa will receive some relief now that three insurers have agreed to pay policyholders for losses related to COVID-19 shutdowns, Bloomberg reported.

The decisions come a few weeks after the Financial Sector Conduct Authority (FSCA) instructed insurers to not broadly reject claims and arranged a deal with insurance companies to consider once-off payments to policyholders. The FSCA, which oversees the country’s financial services industry, also agreed with a Cape Town court’s decision of what can be considered as a business interruption claim, as courts continue to debate whether insurers are correctly interpreting policy terms.

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Heather A. Turner

Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].

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