The price of trust: Santam to pay out R1bn for lockdown claims
Insurers have suffered a blow to their reputations over their reluctance to cover the impact of lockdowns
SA’s largest short-term insurer Santam aims to pay out about R1bn in relief within months to clients hit by the pandemic, its CEO said on Monday, amid criticism of the sector’s handling of policies that companies thought would cover them.
Many small businesses in the hospitality and tourism sector in particular are at risk of collapse after insurers – along with the global insurance industry more broadly – said business interruption policies did not cover the impact of coronavirus lockdowns.
Legal battles over the matter are ongoing in SA and beyond, but many restaurants, hotels and other tourism businesses remain closed or operating at vastly reduced capacity, and may not survive in the meantime...