Despite Monday's announcement that it will now reassess business interruption claims it previously rejected, Santam said it still believed that there were valid reasons to appeal the judgment of the Western Cape High Court in the Ma-Afrika case, with respect to the indemnity period.
“[We] will therefore continue with our application for leave to appeal the Ma-Afrika judgment at the SCA, specifically with regard to the indemnity period.”
Meanwhile, affected Santam policy holders must now provide Santam with audited financial statements and other documentation to support their claims.
“[We have] previously advised intermediaries of these requirements and will continue to do so over the next few weeks,” Santam said.
“Clients are urged to work closely with their intermediaries to ensure that the requirements for processing claims are met.”
Santam has already paid out more than R1bn in interim relief to nearly 2,500 small and medium-sized businesses in the hospitality, leisure and non-essential retail services industries that have CBI cover in the policies. Those payments will be offset against valid claims arising from the assessment process.
“Santam respects the decision of the courts and believes that the recent judgments are sufficient to provide legal certainty in terms of the proximate cause of business interruption losses for policies with the same conditions, characteristics and circumstances to the Ma-Afrika and Café Chameleon judgments,” the insurer said.