UK’s Covid-19 business interruption ruling gives SA policyholders hope
On Tuesday, a UK High Court ruled that insurers are liable for Covid-19 business interruption insurance claims.
The UK’s Financial Conduct Authority (FCA) brought the test case asking the court to clarify how insurers must respond to Covid-19 related losses.
The FCA submitted 21 different types of policy wording for the courts to consider in the test sample.
The FCA says the court ruled in favour of policyholders when it comes to most of the policy interpretations on business interruption claims.
Ryan Woolley, the CEO at Insurance Claims Africa (ICA), says the UK ruling is a positive indicator for South African claimants.
The ICA represents more than 700 hospitality businesses in SA in their legal fight to get their insurance claims paid out.
Although the UK ruling does not set any precedent, Woolley says it may be used as a guide in terms of international legal opinion.
Essentially the FCA, the conduct authority in the UK, ran a test case involving eight insurers and 21 of their policy wordings.Ryan Woolley, CEO - Insurance Claims Africa
The ruling was resoundingly in favour of the policyholder, saying quite clearly that a government response to a notifiable disease is insured and part of the peril.Ryan Woolley, CEO - Insurance Claims Africa
It's a good, solid judgment by very respected judges in the UK... Our law does have some leaning to English law.Ryan Woolley, CEO - Insurance Claims Africa
There are similarities in the wordings [in SA], so it would be very unlikely for there to be a different ruling.Ryan Woolley, CEO - Insurance Claims Africa
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