Lockdown: Insurer to pay relief to affected businesses

Hollard, image: www.coverdirect.co.za

The South African Insurer, Hollard Insurance CO Ltd. released a statement on Saturday – Stating that it will be proving the relief funds to small and medium businesses in South Africa that have been affected by lockdown, in an afford to curb the spread of the coronavirus.

The short-term insurer released a statement after confirmation from the  FSCA (Financial Sector Conduct Authority) that insurers have agreed to consider paying relief to customers.

Willie Lategan, Hollard CEO, acknowledged the complexity of the business interruption cover and stated that they “remain of the view that nationwide government closures or lockdowns are not insurable risks and we believe that legal certainty regarding lockdown-related claims is urgently required. However, like the regulators, we are cognizant of the fact that this legal process is likely to take some time, and we’re concerned that many smaller businesses will be unable to survive until legal certainty is established,”

“We are thus making these payments now, irrespective of the outcome of the legal process.”

The insurer also added that it will be easing some of its claims requirements for faster payments to businesses hit hard by the lockdown regulations.

“We continue to engage with the regulators in dealing with this unprecedented situation,”

“We are confident that the process we’re following will ensure the correct balance between providing policyholder relief and establishing certainty through an urgent legal process,” said Lategan

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