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South African insurer Santam appeals coronavirus decision



(Reuters) – Santam said on Friday that it will appeal a court ruling finding that South Africa's largest non-life insurer is liable to pay a customer's claim in connection with the coronavirus locking.

Like insurance companies around the world, Santam has struggled with customers claiming that it was wrong to reject claims made under company interruption policies after coronavirus restrictions forced their companies to close.

In South Africa, insurers say their insurances did not cover national lock-in. However, a court ruled this week that Santam was responsible for such a claim by a hotel group, in a case closely monitored by the industry.

Santam said after discussing the implications of the ruling with stakeholders, namely its leading reinsurers. , it had been decided that there was a need to obtain legal certainty in the matter from a higher court and it should apply for an appeal.

"Santam believes that the Supreme Court erred in its judgment," it said in a statement.

In a separate statement, following the court ruling, which found Santam liable for the entire 1

8-month period of damages, it had increased its provision for claims under relevant policies by $ 1.7 billion ($ 111 million). [19659002] Santam said that the outcome of the appeal created a high degree of uncertainty about its estimate of the claims, and they may end up significantly higher or lower, which means that it will take time to complete the financial consequences.

It has already paid lost 1 billion rand to affected customers in interim measures, payments that were intended to tide them while legal battles play out. These will be deducted from any additional payments to customers.

More news about insurance and risk management about the coronavirus crisis here. Catalog

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