Umbrella closes for Santam as court forces it to pay out for ...

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Umbrella closes for Santam as court forces it to pay out for Covid losses

In a ‘litmus lawsuit’, a judge has ordered the insurance company to make good on its policies

Cape Town bureau chief

Two hospitality firms with business interruption cover of R122m between them have successfully sued Santam, which refused to compensate them for Covid-19 revenue losses.

Tuesday’s Cape Town High Court victory is the second case in which insurers have been taken to task for their attempts to spurn Covid-19 claims and Western Cape deputy judge president Patricia Goliath described it as a “litmus lawsuit”.

The judgment means sister companies Ma-Afrika Hotels and The Stellenbosch Kitchen are entitled to 18 months of the revenue they have lost or will lose as a result of the pandemic...

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