Streaming issues? Report here
Kieno Kammies 2019 1500 BW Kieno Kammies 2019 1500 BW
Today with Kieno Kammies
09:00 - 12:00
volume_up
volume_mute

Up Next: The Midday Report with Lester Kiewit
See full line-up
Today with Kieno Kammies
09:00 - 12:00
Home
arrow_forward
Business

Santam's three-month settlement offer 'flying in the face of policy and courts'

22 January 2021 8:01 AM
Tags:
SCA
Supreme Court of Appeal
Covid-19 business interuption claim
Ma-Afrika Hotels
Santam business interuption claims
Santam claims
Santam versus hospitality industry
Anel Bestbier
indemnity period

Attorney Anel Bestbier has slammed insurer Santam’s decision to limit business interruption settlement offers to just three months.

The short-term insurer is offering a three-month full and final settlement offer to clients that have Covid-19 business interruption insurance claims.

This comes after a huge court victory for the hospitality industry in November last year when the Western Cape High Court ruled in favour of Ma-Afrika Hotels and Stellenbosch Kitchen in its case against Santam.

Santam was forced to acknowledge that it is liable for business interruption claims resulting from the Covid-19 pandemic.

However, it will only offer claimants in the hospitality and leisure sector a settlement to cover three months of losses.

This despite the fact that some policyholders have much longer indemnity periods in their contracts.

RELATED: Santam limits Covid-19 'business interruption' pay-outs to 3 months' losses

Santam's three-month offer is pending the outcome of its appeal at the Supreme Court over the indemnity period.

Anel Bestbier of Thomson Wilks, who led the landmark Ma-Afrika case against Santam, says the battered hospitality industry cannot afford any further delays and legal wrangling.

Bestbier says her clients will be opposing Santam's appeal at the Supreme Court of Appeal. The insurer's application for leave to appeal will be heard on Tuesday 16 February.

She says the High Court victory last yeat may prove to be hollow because Santam refuses to cooperate, despite having the legal certainity it initially sought.

Santam has finally come around and admitted that they are liable to indemnify these clients... Unfortunately, in the Ma-Afrika matter, they have indicated that they intend to proceed with the appeal on the indemnity period issue.

Anel Bestbier, Director - Thomson Wilks Attorneys

The question arises: Will Santam be making interim payments to clients who have similar policies to that of Ma-Afrika? Unfortunately, we have yet to receive any confirmation of that.

Anel Bestbier, Director - Thomson Wilks Attorneys

This settlement suggestion or offer that's being made to clients as a whole - a full and final three months offer - is flying directly in the face of their policy and specifically the Ma-Afrika judgment.

Anel Bestbier, Director - Thomson Wilks Attorneys

Santam has from day one said that they want legal certainty... Now they have that legal certainty and they are just saying they are not happy with the legal certainty they have now got.

Anel Bestbier, Director - Thomson Wilks Attorneys

Listen to the discussion on Breakfast with Refilwe Moloto:




22 January 2021 8:01 AM
Tags:
SCA
Supreme Court of Appeal
Covid-19 business interuption claim
Ma-Afrika Hotels
Santam business interuption claims
Santam claims
Santam versus hospitality industry
Anel Bestbier
indemnity period

More from Business

Sars plans to tax retirement funds if you leave SA, target offshore assets

24 February 2021 8:42 PM

The proposal to tax retirement fund members when no longer tax-resident in SA is not unreasonable, says Prof. Osman Mollagee.

Share this:
Read More arrow_forward

Med scheme covers chemo treatment but not weekly Covid test required by hospital

24 February 2021 7:39 PM

Consumer ninja Wendy Knowler follows up on the case of a patient who'd been paying his membership dues for more than 40 years.

Share this:
Read More arrow_forward

No tax increases: A 'good news' Budget but SA not out of the woods

24 February 2021 7:17 PM

'We owe a lot of people a lot of money' says Tito Mboweni. Wide-ranging reaction to Budget 2021 on The Money Show.

Share this:
Read More arrow_forward

Facebook and Australia, what it means for the rest of us

24 February 2021 7:15 PM

Will the deal with Australia help publishers around the world?

Share this:
Read More arrow_forward

Uber class action suit in SA: 'Drivers deserve employee rights', says law firm

24 February 2021 11:06 AM

Uber South Africa is facing a class-action lawsuit over the employment rights of drivers.

Share this:
Read More arrow_forward

'Kenya Airways said SAA is our role model! We want lots of government money!'

23 February 2021 9:00 PM

Kenya wants to nationalise the minority-privatised airline, providing a massive bailout. Bruce Whitfield interviews Dianna Games.

Share this:
Read More arrow_forward

Does an emotive Sars advert make you feel better about paying tax?

23 February 2021 8:08 PM

It's Budget day tomorrow and branding expert Sizakele Marutlulle chooses a topical campaign as her advertising hero of the week.

Share this:
Read More arrow_forward

Kumba Iron Ore reports record earnings: 'We're confident in terms of the future'

23 February 2021 7:18 PM

It's thanks to global demand and a quality product - The Money Show’s Bruce Whitfield interviews Kumba CEO Themba Mkhwanazi.

Share this:
Read More arrow_forward

Foreign investment boost of R1.6 billion for digital-only TymeBank

23 February 2021 6:38 PM

The opportunity is a game-changer for the fledgling SA bank. Bruce Whitfield interviews TymeBank CEO Tauriq Keraan.

Share this:
Read More arrow_forward

Pineapple leaf nappies and sanitary wear wins this innovative woman an award

23 February 2021 2:40 PM

Inners of Leafline products are made from a natural pineapple Leaf fibre called Pina Fibre making them environmentally friendly.

Share this:
Read More arrow_forward