Judgment reserved in Santam vs Ma-Afrika Hotels matter over Covid-19 insurance

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Ma-Afrika Hotels sought a declaratory order to compel its insurance broker to pay for the interruption of its business during the lockdown.

Santam argued before a full bench that the case revolved around the wording of its policy, which it claimed did not provide cover for a global or national pandemic, but instead was “limited to causative events that are local to the insured’s premises”.

Ma-Afrika Hotel’s senior counsel, Mike van der Nest, said their interpretation of the policy was that an insurance claim would kick in precisely when the government responded to a notifiable disease. He argued that Santam had taken a “bad bet” in the wording of their policy and were attempting to get out of the liability to their client.

They argued that as a result of these two occurrences, the government decided to impose a lockdown and these events happened on a linear scale.

 

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