Streaming issues? Report here
702 logo Gradients 702 logo Gradients
Best of 702
22:00 - 00:00
volume_up
volume_mute

Up Next: Early Breakfast with Africa Melane
See full line-up
Best of 702
22:00 - 00:00
Home
arrow_forward
Business
fiber_manual_record
Lifestyle

More insurers ready to 'settle' business interruption claims

29 July 2020 8:43 PM

Guardrisk's announced it will settle 700 small business claims, other insurance companies are following suit says Wendy Knowler.

It's become a hot topic during this time of Covid - why are insurance companies in a fight against desperate businesses claiming for business interruption?

Many insurers claim it’s the lockdown and not the pandemic that led to business interruption.

RELATED: Shareholder activists grill Santam about 'business interruption insurance'

Now, some are backing down.

Guardrisk is one of the latest to announce that it will settle, that's with up to 700 small business clients fighting its decision to reject their claims related to the impact of the nationwide lockdown.

RELATED: This insurance company says it is paying out business interruption claims

The claims range from tens of thousands of rand to several million, says consumer ninja Wendy Knowler.

Santam and Hollard have also announced plans to offer interim relief to hard-hit businesses.

RELATED: Santam to pay out R1 billion to policyholders in 'business interruption' relief

Picture: 123rf

On Wednesday, the South African Insurance Association (Saia) welcomed the understanding reached between certain non-life insurance companies, the Financial Sector Conduct Authority (FCSA) and the Prudential Authority (PA) on interim relief.

Knowler says Saia stresses that the relief measures apply only to business interruption policies that include extensions for infections diseases:

"The FCSA puts that at only between 3% and 5% of business interruption policies."

I think the best we can do here is to alert people to the fact that insurance is a massively complicated and technical subject and you cannot take any clause in an insurance policy for granted.

Bruce Whitfield, The Money Show host

The crux of this case is that the business owners - largely hospitality industry or restaurants and guest houses - understood that they had cover for losses related to contagious disease, or notifiable or whatever the wording was. And hello! we're in the middle of a pandemic so they should be covered!

Wendy Knowler, Consumer journalist

And then the insurers came and said 'no', without giving too much detail, 'we weren't offering cover at that premium for a pandemic affecting the whole of South Africa'.

Wendy Knowler, Consumer journalist

Knowler says the knock-on effect of more and more businesses going under has also influenced the court of public opinion, resulting in a change in the stance of some insurers.

Still, the wording of apparent settlements is open to interpretation:

Guardrisk said 'settle'. I think tonight Mutual said 'settle'. Santam said 'interim relief payment', where if it wins its court case then it's not going to ask for the money back but if it loses, then it's going to offset this R1-billion it's making available...

Bruce Whitfield, The Money Show host

Then Guardrisk said it is going to settle up to 700 claims... and it's the first three months of lockdown... It sounds like settlement but what's confusing me now is, why do that if you still hold the view that the lockdown itself didn't trigger a claim under its policies? And why are you still appealing that High Court ruling [in favour of Cafe Chameleon]? It doesn't make sense to me.

Wendy Knowler, Consumer journalist

Listen to the discussion on The Money Show:


29 July 2020 8:43 PM

More from Business

WhatsApp-message-log-app-smartphone-social-media-texting-technology-123rf

Pyramid schemes: It's greed, you think you stand a better chance than the others

8 August 2020 2:44 PM

National Consumer Commission director of prosecutions Joseph Selolo says you can't be naive or claim to be duped.

Share this:
Read More arrow_forward

premier-alan-winde-cticc-covid-19-hospitaljpg

Premier Winde calls for alcohol sales ban to be lifted in WC

7 August 2020 5:32 PM

Following a cabinet meeting, Winde said that the province had sufficient health capability to manage COVID-19 patients.

Share this:
Read More arrow_forward

mos-crib-thumbnail-unfilteredjpg

Our Nedbank Business Ignite winners want to do business with YOU!

7 August 2020 9:18 AM

From 50 finalists the three winners have been selected and they represent top adaptive thinking in business right now.

Share this:
Read More arrow_forward

performance-3202707-1920jpg

Nigerian Afrobeats star aims to raise $20m to fund the continent's musicians

6 August 2020 9:03 PM

'Mr Eazi' launched the Africa Music Fund to support the continent's creative talent. Bruce Whitfield interviews Lee Kasumba.

Share this:
Read More arrow_forward

oranges-1117628-1920jpg

Good news for local citrus industry: Bumper season expected for US exports

6 August 2020 8:38 PM

Justin Chadwick (Citrus Growers' Association) says it's all thanks to the perceived immune-boosting attraction of Vitamin C.

Share this:
Read More arrow_forward

liquor-store-sales-wine-champagne-mmc-brut-bubbly-alcohol-booze-drinking-123rf

Former Shoprite CEO joins court battle against alcohol ban - Govt is too slow!

6 August 2020 7:36 PM

Bruce Whitfield interviews Whitey Basson, who believes it's just not good enough for govt to say ban will be lifted but not when.

Share this:
Read More arrow_forward

MTN-cellphone-network-service-provider-data-airtime-calls-123rf

MTN to quit Middle East to focus on Africa

6 August 2020 6:55 PM

Bruce Whitfield talks to MTN CFO Ralph Mupita about the reasons for the move and the company's huge profit increase.

Share this:
Read More arrow_forward

afrika-tikkunjpg

SA needs 'the Madiba compassion' more than ever now, says Afrika Tikkun CEO

5 August 2020 8:54 PM

Marc Lubner on the NGO's programmes for young South Africans and how working with Nelson Mandela inspired his life's work.

Share this:
Read More arrow_forward

car insurance short-term cover 123rfbusiness 123rflifestyle 123rf

Why it's a bad idea to ditch or downgrade your car insurance to save on costs

5 August 2020 8:21 PM

Involved in an accident you didn't cause? Third party claims don't pay out much. Wendy Knowler shares one driver's horror story.

Share this:
Read More arrow_forward

liberty-ceo-david-munrojpg

Liberty reports R2.2b loss amid pandemic, but 'capital ratio remains strong'

5 August 2020 7:53 PM

Liberty's David Munro tells The Money Show its R3b pandemic reserve shows the insurer 'truly living out its purpose'.

Share this:
Read More arrow_forward

More from Lifestyle

zonkejpg

Enjoy Zonke's virtual concert with the State Theatre

9 August 2020 3:00 PM

The talented musician tells Refiloe Mpakanyane she hopes the audience will give her love through their lenses.

Share this:
Read More arrow_forward

parenting-in-lockdownjpg

Pandemic parenting — hands on, hands-free and hands sanitised

7 August 2020 5:35 PM

Mandy Wiener and guests share advice around the challenges a lot of us are facing when it comes to parenting during lockdown.

Share this:
Read More arrow_forward

car insurance short-term cover 123rfbusiness 123rflifestyle 123rf

Why it's a bad idea to ditch or downgrade your car insurance to save on costs

5 August 2020 8:21 PM

Involved in an accident you didn't cause? Third party claims don't pay out much. Wendy Knowler shares one driver's horror story.

Share this:
Read More arrow_forward

Empty office space covid-19 coronavirus lockdown 123rfbusiness 123rf

'Let's use less stigmatising terminology when we communicate about COVID-19'

5 August 2020 4:43 PM

Employment relations expert Gawie Cillié suggests managers create a psychological safe space to avoid bullying in the workplace.

Share this:
Read More arrow_forward

ei-7020-omny-episodic-claudine-1500x1500-fapng

Signcast: Sign language adds important dimension to podcasts

5 August 2020 3:47 PM

The Signcast of a discussion with Professor Claudine Storbeck features her translation of the conversation into sign language.

Share this:
Read More arrow_forward

woman-mask-covid19-virus-symptoms-self-isolation-quarantine-laptop-at-home-123rf

Exploring how women can show up authentically with resilience and strength

5 August 2020 3:41 PM

Human Potential and parenting expert Nikki Bush takes listeners behind the scenes on what builds a strong personal brand.

Share this:
Read More arrow_forward

nike-adpng

[WATCH] Why Nike's new tv advert is 'absolutely extraordinary'

4 August 2020 8:09 PM

Nike's hit the mark, again, with its latest tv ad campaign. Branding expert Andy Rice awards it this week's hero's rating.

Share this:
Read More arrow_forward

Money notes coins rands

Negotiating your salary: 'You need to come prepared'

4 August 2020 3:23 PM

Azania Mosaka speaks to talent strategist and leadership coach Anja van Beek on how to go about having the conversation.

Share this:
Read More arrow_forward

Young man reading books in library literature 123rflifestyle 123rf

'Verify that the institution you want to study at is registered and accredited'

4 August 2020 12:40 PM

Independent Institute of Education's Nola Payne unpacks factors pupils should consider when deciding on a tertiary institution.

Share this:
Read More arrow_forward

Ferrari

I collect cars. I’m a big Aston Martin and Ferrari guy - Vusi Thembekwayo

3 August 2020 8:06 PM

Bruce Whitfield interviews Vusi Thembekwayo about his attitude to money (hopes and fears, successes and failures, etc.).

Share this:
Read More arrow_forward