However, Davis said once an insurer sells a policy with wording that covers a disease such as Covid-19, it is difficult to argue against paying out.
He ordered Old Mutual to assess and pay Interfax's claims, “in an expeditious and bona fide manner”.
This followed argument about the company's claim for an interim payment of R4.8m for April, May, June, and part of March.
“This figure was based on a calculation by ... an independent assessor ... predicated on an estimated turnover during the period of R10.6m and an actual turnover of R1.3m,” said Davis.
Ethical business practice would support an interim payment, he said, but since the insurance policy did not make provision for an interim payment, the court could not order it.
Costs were awarded against Old Mutual.