After seven months of legal wrangling and Santam’s refusal to pay its customers' business interruption claims, the company conceded last week that it was liable.
But the insurance company has decided to settle Covid-19 business interruption claims for only three months.
the claims in question are those affected by the recent judgment in the Western Cape High Court in the case between the insurer and Ma-Afrika Hotels and The Stellenbosch Kitchen.
In its judgment in November, the court said Santam was liable to indemnify the two businesses in terms of the business interruption section of their insurance policies. The court said the period of indemnity was 18 months.
Santam had indicated it will offer its hospitality and leisure customers a full and final settlement of only three months of losses, despite many policyholders having indemnity periods of six, 12 and 18 months in their contracts with the insurer.
Santam will also be appealing the question of the indemnity period at the Supreme Court of Appeal on February 16.