Santam starts assessing business interruption claims

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The potential outcome of the appeal may still impact Santam's assessment of the estimated net CBI claims.
The potential outcome of the appeal may still impact Santam's assessment of the estimated net CBI claims.

Santam, SA's biggest short-term insurer announced on Monday that it will commence the process of assessing and processing claims for all commercial policies with contingent business interruption (CBI) extensions.

This is in addition to those covered by Santam's hospitality and leisure division. Santam has about 4 000 commercial clients with CBI policy extensions that cover contagious and infectious diseases.

Santam made the decision to include the claims from all commercial policies with CBI extensions after further analysis and consideration of recent court judgments.

The recent court judgments affected about 1 300 clients with claims for policies with CBI extensions in the hospitality and leisure division and Santam has earlier in January announced it will commence the processing of these claims.

Large corporate policies in the Santam Specialist Business division will be handled on an individual basis due to their "bespoke and complex nature", the insurer said in a JSE-announcement on Monday.

Santam said it remains committed to resolving the outstanding matter relating to the indemnity period in policies written by the hospitality and leisure division. The company is appealing a judgment of the Western Cape High Court with respect to the length of the indemnity period. This matter only relates to the hospitality and leisure clients.

The potential outcome of the appeal may still impact Santam's assessment of the estimated net CBI claims. This could result in significantly higher or lower actual claims.

Santam is set to release its audited results for the financial year ended 31 December 2020 on or about 4 March this year.

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