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Santam rejected claims from two hospitality groups, claiming that whether or not there were COVID cases within the insurance coverage radius, the businesses would still have been forced to suspend normal operations. (Photo: Shutterstock)

The South African High Court has ruled against Santam, South Africa’s largest short-term insurer, in a case over the denial of business interruption insurance during the COVID-19 pandemic and the resulting lockdowns.

Ma-Afrika Hotels and Stellenbosch Kitchens, two hospitality companies, joined forces with Insurance Claims Africa (ICA), a public loss adjustment company, against Santam. Since the onset of COVID-19, ICA has been representing hundreds of tourism and hospitality businesses in an attempt to get insurers to pay out business interruption claims.

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