Streaming issues? Report here
Clement Manyethela 702 gradient Clement Manyethela 702 gradient
The Clement Manyathela Show
09:00 - 12:00
volume_up
volume_mute

Up Next: The Midday Report
See full line-up
The Clement Manyathela Show
09:00 - 12:00
Home
arrow_forward
Business

This insurance company says it is paying out business interruption claims

24 June 2020 8:40 PM
Tags:
Insurance
Wendy Knowler
Lockdown
business interruption

Wendy Knowler, Consumer Ninja, investigates non-payment of business interruption claims during the Covid-19 lockdown.

Many business owners, particularly those in tourism and hospitality, take out insurance policies which cover losses that include those incurred due to interruption by infectious or contagious notifiable diseases.

Now, however, most insurers argue that Covid-19 isn’t responsible for the loss of business – rather, it’s due to the lockdown.

I've spoken to a number of brokers on condition of anonomity of course and they say no, the rejections are coming in thick and fast...

Wendy Knowler, consumer journalist

A franchise of one of those major quick service franchises...after three months of assessors making this franchise owner jump through all the hoops, eventually said neither the president's declaration of a state of disaster or the lockdown forces them to provide the cover provided by the notifiable diseases extention...

Wendy Knowler, consumer journalist

The insured must prove that the business interruption was caused by a notifiable disease within a radius of the premises...

Wendy Knowler, consumer journalist

But then something threw the cat among the pigeons - and that was Outsurance - saying 'we are honouring these claims' and actually have settled 135 business interruption claims, so far paid out 37 million rand...we've set aside 220 million rand...

Wendy Knowler, consumer journalist

The average payout is just about 400-thousand...the average payout seems rather low...but basically they pay out what their performance was pre-lockdown, they pay them that...

Wendy Knowler, consumer journalist

So they've come out great for their clients and great marketing for Outsurance.

It is not clear, however, if they will change the cover clause of an outbreak occurring within a certain radius of the business.

Listen to the interview below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.


24 June 2020 8:40 PM
Tags:
Insurance
Wendy Knowler
Lockdown
business interruption

Recommended

More from ConsumerTalk with Wendy Knowler

woman-medical-care-doctore-insurance-form-pexels-photojpeg

The Ombudsman for Short-Term Insurance report - what were the complaints?

27 May 2020 7:58 PM

The Ombud for Short Term Insurance’s aim is to resolve short term insurance complaints ''fairly, efficiently and impartially''.

Share this:
Read More arrow_forward

woman-medical-care-doctore-insurance-form-pexels-photojpeg

When credit life insurance goes wrong because of a UIF payment

20 May 2020 7:51 PM

Wendy Knowler, consumer Ninja, on the small print and pitfalls of credit life insurance.

Share this:
Read More arrow_forward

191118bankingjpg

The banking report is out - our Consumer Ninja takes a look

13 May 2020 8:00 PM

The annual banking ombuds report has been released. Were they good, were they bad; how many complaints have been received?

Share this:
Read More arrow_forward

claim-deniedjpg

Consumer Ninja: Many credit life claims are being rejected

6 May 2020 8:00 PM

It seems many credit life claims are being rejected. Here are nine companies that were named and shamed in a new report.

Share this:
Read More arrow_forward

Loan lending

Payment holidays from the banks - can they be trusted?

25 March 2020 7:57 PM

Consumer Ninja, Wendy Knowler, on payment holidays from banks in which you get a break from interest and repayment of debt.

Share this:
Read More arrow_forward

consumer-talk-thumbnailjpg

When the coronavirus default tsunami hits, how will banks respond?

18 March 2020 8:03 PM

This edition of Consumer Corner looks at how lay-offs, closures and quarantine will impact people's income and ability to repay debt.

Share this:
Read More arrow_forward

insurance-balancejpeg

Sudden cancellation of life and illness policies - consumer warrior advice

11 March 2020 8:07 PM

Wendy Knowler, consumer Ninja, has a horror story about insurance policies being cancelled - by sms.

Share this:
Read More arrow_forward

scam-fraud--

Telkom directory used to dupe small business owners

4 March 2020 7:54 PM

Hundreds of small businesses which fell prey to a phone directory listings scam, should relax and read here.

Share this:
Read More arrow_forward

online-shopper-laptop-digital-transaction-free-image-pexelsjpg

Wait - why did that debit order go off so early?

26 February 2020 8:26 PM

Wendy Knowler, consumer journalist, on Nedbank's early debit orders.

Share this:
Read More arrow_forward

car-dealership-handshakejpg

Read your documents before you sign the deal on your car or house!

19 February 2020 7:46 PM

Wendy Knowler, consumer journalist, on the importance of carefully reading your documents when you buy assets.

Share this:
Read More arrow_forward

More from Good to Know with Wendy Knowler

woman-medical-care-doctore-insurance-form-pexels-photojpeg

The Ombudsman for Short-Term Insurance report - what were the complaints?

27 May 2020 7:58 PM

The Ombud for Short Term Insurance’s aim is to resolve short term insurance complaints ''fairly, efficiently and impartially''.

Share this:
Read More arrow_forward

woman-medical-care-doctore-insurance-form-pexels-photojpeg

When credit life insurance goes wrong because of a UIF payment

20 May 2020 7:51 PM

Wendy Knowler, consumer Ninja, on the small print and pitfalls of credit life insurance.

Share this:
Read More arrow_forward

191118bankingjpg

The banking report is out - our Consumer Ninja takes a look

13 May 2020 8:00 PM

The annual banking ombuds report has been released. Were they good, were they bad; how many complaints have been received?

Share this:
Read More arrow_forward

claim-deniedjpg

Consumer Ninja: Many credit life claims are being rejected

6 May 2020 8:00 PM

It seems many credit life claims are being rejected. Here are nine companies that were named and shamed in a new report.

Share this:
Read More arrow_forward

consumer-talk-thumbnailjpg

When the coronavirus default tsunami hits, how will banks respond?

18 March 2020 8:03 PM

This edition of Consumer Corner looks at how lay-offs, closures and quarantine will impact people's income and ability to repay debt.

Share this:
Read More arrow_forward

insurance-balancejpeg

Sudden cancellation of life and illness policies - consumer warrior advice

11 March 2020 8:07 PM

Wendy Knowler, consumer Ninja, has a horror story about insurance policies being cancelled - by sms.

Share this:
Read More arrow_forward

scam-fraud--

Telkom directory used to dupe small business owners

4 March 2020 7:54 PM

Hundreds of small businesses which fell prey to a phone directory listings scam, should relax and read here.

Share this:
Read More arrow_forward

online-shopper-laptop-digital-transaction-free-image-pexelsjpg

Wait - why did that debit order go off so early?

26 February 2020 8:26 PM

Wendy Knowler, consumer journalist, on Nedbank's early debit orders.

Share this:
Read More arrow_forward

car-dealership-handshakejpg

Read your documents before you sign the deal on your car or house!

19 February 2020 7:46 PM

Wendy Knowler, consumer journalist, on the importance of carefully reading your documents when you buy assets.

Share this:
Read More arrow_forward

181123BlackFriday171

Only Germans take Black Friday more seriously than South Africans

28 November 2019 3:52 PM

In South Africa, Black Friday has become a spend-fest of epic proportions, says consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward