The 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.
Ma-Afrika Hotels and restaurant company Stellenbosch Kitchen are joint applicants in the matter, which will be heard by a full bench led by Deputy Judge President Patricia Goliath.
"We believe this is a watershed test case in which the judgment will have far-reaching implications across the entire insurance industry. It’s also a critical case for all claimants in the tourism and hospitality sector, for whom the failure of their insurers to pay their legitimate claims has had a devastating impact on their businesses and their employees," ICA chief executive officer Ryan Woolley said.
"It’s also not only Santam in the dock tomorrow but also a rogue’s gallery of insurance companies, which includes Old Mutual Insurance, Hollard, GuardRisk, Bryte, Thatch, F&I, TRA, Lombard, AIG, CHUBB and Monitor. Like Santam, all these companies have rejected these claims and are waiting to see what the court decides," Woolley added.
On Monday Ma-Afrika Hotels chief operating officer Elna du Toit accused Santam and other large insurers of having lost their"moral compass, their credibility and their decency" over claims that have been rejected."If there’s one thing that Covid-19 has shown the tourism and hospitality sector, it’s that when it comes to insurers, they will promise you the earth to get your premiums, but will let you down when you need them most.
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