Old Mutual has joined insurers who will either provide some financial relief or come to a settlement agreement with their business interruption customers.
The insurer estimated about R650 million for financial settlements and business interruption claims already submitted by its clients. However, financial settlements will only be made to clients who have an annual sum insured of R5 million or less who had the infectious disease extension in their policies, it said.
Old Mutual joins Guardrisk, Santam and Hollard, who announced relief packages earlier this week.
This followed an agreement they reached with the authorities, namely the Financial Sector Conduct Authority and the Prudential Authority, that they will help their clients - especially the smaller businesses - while they await legal certainty from courts regarding payouts for business interruption claims relating to the lockdown.
However, their bigger commercial customers will still have to wait for the conclusion of the existing court cases. Old Mutual said claims of customers that do not qualify for the commercial settlement are being treated on a case-by-case basis.
Compiled by Londiwe Buthelezi