Santam to pay out R1 billion to policyholders in 'business interruption' relief
Santam on Monday pledged to pay out up to R1 billion to some of its “business interruption” clients.
It previously rejected these claims, arguing that the lockdown – not the pandemic – is responsible for the loss of business and that it, therefore, needn’t pay.
Santam’s about-turn comes after it and other insurers reached an agreement with the Financial Sector Conduct Authority (FSCA) to provide interim relief to policyholders with the appropriate “contagious disease extension” in their business interruption cover.
The insurer will make a once-off payment to small and medium-sized policyholders while awaiting the outcome of the legal process.
The court will decide the case in September.
Santam is South Africa’s largest short-term insurance company.
The Money Show’s Bruce Whitfield interviewed Lizé Lambrechts, CEO at Santam.
We’ve had no instruction that says we must be the claims… What we’re offering is relief. We can see that they’re suffering and we’re reaching deep into our pockets…Lizé Lambrechts, CEO - Santam
We will not claw back the money should [should the court case go in Santam’s favour] …Lizé Lambrechts, CEO - Santam
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