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Could lockdown insurance saga leave some hospitality and tourism claimants insolvent?

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Businesses in the hospitality and tourism sector claim that their business interruption insurance claims will fall away if they become insolvent. Photo: Getty Images
Businesses in the hospitality and tourism sector claim that their business interruption insurance claims will fall away if they become insolvent. Photo: Getty Images
Getty Images

The Federated Hospitality Association of Southern Africa's (FEDHASA) is worried that insurance companies are playing the long game on purpose: drag out the business interruption cases long enough to end up with fewer claimants whenever the issue is finally put to bed.

Rosemary Anderson, the chairperson of the national office of FEDHASA, said during a media briefing on Monday that the delays in getting finality on the business interruption claims caused by the lockdown would work in the favour of insurers, as fewer businesses would be eligible to claim as time goes on.

"By unnecessarily delaying all these things in court, even if Santam loses, they will gain because those hospitality companies that were won't be able to hang on any longer, they will no longer be eligible to claim once they stop trading," said Anderson.

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