Santam only insurer refusing to pay business interruption claims citizen.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from citizen.co.za Daily Mail and Mail on Sunday newspapers.
Santam remains intransigent, refusing to abide by SCA precedent
Flood of BI claimants outside tourism sector join ICA following series of court victories
Specialist public loss adjuster, Insurance Claims Africa, welcomes Guardrisk and Hollard’s commitment to honour their customers Business Interruption claims following the recent Supreme Court of Appeal (SCA), which ruled in favour of Café Chameleon.
ICA warns however, that the next battle will be in respect of the quantum of these claims and it therefore encourages all Hollard and Guardrisk claimants to contact ICA, so that it can assist to secure a fair settlement.
On 17 December 2020, the SCA dismissed the appeal, ordering Guardrisk to settle Café Chameleon’s full claim and legal costs. On 18 December, Guardrisk wrote to clients confirming it accepted the SCA ruling and would abide by it.
TimesLIVE > By TimesLIVE - 23 December 2020 - 08:57 Two insurance companies have agreed to pay business interruption claims from businesses forced to close during the national lockdown. File image Image: 123rf/Everyday Plus
Insurance Claims Africa (ICA) has welcomed the decision by Hollard and Guardrisk to pay claims from businesses forced to close during the national lockdown to stem the spread of the coronavirus.
This follows the recent Supreme Court of Appeal (SCA) ruling in favour of the business interruption claim made by Café Chameleon, a Guardrisk customer . On December 18, the company said it would abide by the ruling.
Ryan Woolley, CEO of ICA, said Hollard has since also agreed to start processing claims as long as the policies contained the appropriate and similar cover to the policy assessed by the SCA in the Café Chameleon case.
Share This:
Supreme Court of Appeal (SCA) rules against an insurance company that did not want to pay out a business interruption insurance claim.
The Supreme Court of Appeal (SCA) has ruled against Guardriskâs appeal in its battle against the Cape Town restaurant Cape Chameleon.
This comes after the insurance company appealed against a Western Cape High Courtâs decision which was ruled back in July asking that it compensate Cafe Chameleonâs contingent business interruption insurance (CBI).
CEO of Insurance Claims Africa Ryan Woolley reacted to the ruling saying itâs a huge win for the hospitality and tourism industry who have lost revenue during the pandemic.
The lockdown – and not government action – resulted in business closures and losses, which means short-term insurers will now have to pay their clients. On Thursday 17 December the Supreme Court of Appeal (SCA) ruled in favour of Cape Town restaurant Café Chameleon in its case against insurer Guardrisk.
The ruling, made with a costs order, was welcomed as precedent-setting because it could close the door on the controversy around the business interruption (BI) insurance claims. But for insurers, it’s a potentially ruinous lesson about shoddy underwriting as it will set them back billions of rand – and could open the floodgates for further claims.