Streaming issues? Report here
money-show-thumbnailjpg money-show-thumbnailjpg
The Money Show with Bruce Whitfield
18:00 - 20:00
volume_up
volume_mute

Up Next: The Aubrey Masango Show
See full line-up
The Money Show with Bruce Whitfield
18:00 - 20:00

This insurance company says it is paying out business interruption claims

24 June 2020 8:40 PM

Wendy Knowler, Consumer Ninja, investigates non-payment of business interruption claims during the Covid-19 lockdown.

Many business owners, particularly those in tourism and hospitality, take out insurance policies which cover losses that include those incurred due to interruption by infectious or contagious notifiable diseases.

Now, however, most insurers argue that Covid-19 isn’t responsible for the loss of business – rather, it’s due to the lockdown.

I've spoken to a number of brokers on condition of anonomity of course and they say no, the rejections are coming in thick and fast...

Wendy Knowler, consumer journalist

A franchise of one of those major quick service franchises...after three months of assessors making this franchise owner jump through all the hoops, eventually said neither the president's declaration of a state of disaster or the lockdown forces them to provide the cover provided by the notifiable diseases extention...

Wendy Knowler, consumer journalist

The insured must prove that the business interruption was caused by a notifiable disease within a radius of the premises...

Wendy Knowler, consumer journalist

But then something threw the cat among the pigeons - and that was Outsurance - saying 'we are honouring these claims' and actually have settled 135 business interruption claims, so far paid out 37 million rand...we've set aside 220 million rand...

Wendy Knowler, consumer journalist

The average payout is just about 400-thousand...the average payout seems rather low...but basically they pay out what their performance was pre-lockdown, they pay them that...

Wendy Knowler, consumer journalist

So they've come out great for their clients and great marketing for Outsurance.

It is not clear, however, if they will change the cover clause of an outbreak occurring within a certain radius of the business.

Picture: 123rf

Listen to the interview below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.


24 June 2020 8:40 PM

More from ConsumerTalk with Wendy Knowler

cellphone-mobile-phone-user-chat-texting-SMS-apps-city-skyline-123rf

Here's how to stop dodgy subscription services from depleting your airtime

29 July 2020 6:44 PM

Unwanted charges on your cell bill? Struggling to unsubscribe from rogue content services that you never signed up for? Here's what you can do.

Share this:
Read More arrow_forward

covid-19-hand-sanitiser-face-mask-hygiene-sanitation-coronavirus-123rf 123rf

You may be using a hand sanitiser that doesn't work against Covid, expert warns

8 July 2020 6:04 PM

Hand sanitiser has become a highly sought-after product amid the coronavirus pandemic. But are all of them effective? Wendy Knowler investigates.

Share this:
Read More arrow_forward

woman-on-cell-phone-pexels-freejpeg

'He sent through a fake bank payment notification' - beware Gumtree scammers

3 June 2020 4:47 PM

As South Africans look for ways to make extra cash, Gumtree South Africa has warned consumers not to fall prey to online fraudsters.

Share this:
Read More arrow_forward

Missing Image Placeholder

The Ombudsman for Short-Term Insurance report - what were the complaints?

27 May 2020 7:58 PM

The Ombud for Short Term Insurance’s aim is to resolve short term insurance complaints ''fairly, efficiently and impartially''.

Share this:
Read More arrow_forward

Missing Image Placeholder

When credit life insurance goes wrong because of a UIF payment

20 May 2020 7:51 PM

Wendy Knowler, consumer Ninja, on the small print and pitfalls of credit life insurance.

Share this:
Read More arrow_forward

191118bankingjpg

The banking report is out - our Consumer Ninja takes a look

13 May 2020 8:00 PM

The annual banking ombuds report has been released. Were they good, were they bad; how many complaints have been received?

Share this:
Read More arrow_forward

Cars-For Sale-Automotive-Industry-Dealership-Vehicles-service-wheels-123rf

Car sales and repairs reopen, but no clarity on motor licensing offices just yet

13 May 2020 5:17 PM

Car dealerships and repair shops have been allowed to reopen under very strict conditions, explains consumer journo Wendy Knowler.

Share this:
Read More arrow_forward

claim-deniedjpg

Consumer Ninja: Many credit life claims are being rejected

6 May 2020 8:00 PM

It seems many credit life claims are being rejected. Here are nine companies that were named and shamed in a new report.

Share this:
Read More arrow_forward

Missing Image Placeholder

Do I still have to pay my gym membership (and other consumer-related questions)?

29 April 2020 3:31 PM

You can send your consumer-related questions and queries to consumer journalist Wendy Knowler via consumer@knowler.co.za

Share this:
Read More arrow_forward

Missing Image Placeholder

Who's offering relief? A look at medical aid, insurance and retirement annuities

8 April 2020 4:59 PM

Certified financial planner Kobus Kühn has compared what various companies, long-term insurers, and medical schemes are offering.

Share this:
Read More arrow_forward