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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Cape court to hear 'watershed' case on hospitality sector Covid-19 insurance claimsThe Western Cape High Court is set to hear a watershed case on Tuesday in which companies in the hospitality industry are challenging the rejection of insurance claims relating to losses incurred due to the Covid-19 pandemic.
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