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Cover under US liability policy does not extend to arson by hospital patients

11 September 2017

In August 2017, a US federal court held that the indemnity for ‘activities’ on behalf of the insured under a liability policy of an insured and its members does not extend to cover arson or attempted suicide by two mentally ill patients who attempted to commit suicide by burning down their apartments owned and managed by Suburban Park Apartments. The fires, which were started in two separate incidents, could not be said to constitute ‘activities on behalf of the insured’ under an extension clause of the policy, and as such fell outside the scope of policy coverage.

US court upholds Lloyd’s flood exclusion

05 September 2017

A US court of appeals upheld the exclusion in a policy issued by Lloyd’s Underwriters for losses ‘caused directly or indirectly by flood’ in relation to a claim where a river basin marina lost five of its docks in a storm which generated strong winds and 18cm of rain causing the river to rise about a metre above its normal levels and overflow its banks in some places.

Relief for homeowners, banks as ConCourt rules on historical debt

29 August 2017

The Constitutional Court in the Case of Chantelle Jordaan and others V City of Tshwane Metropolitan had to determine if Section 118(3) of the Local Government Municipal Systems Act 2000 which provides "an amount due for municipal services fees, surcharges on fees, property rates and other municipal taxes, levies and duties is a charge upon the property in connection which the amount is owing and enjoys preference over any mortgage bond registered against the property"means that the new owner can be saddled with the historical debt which a previous owner incurred.

One tree falling on three victims is one insurance occurrence

28 August 2017

The Housing Authority of Somerset, US was liable for failing to maintain an area where a tree fell on three victims and the jury award was $3.7 million. The insurance policy limited coverage to $1 million for each ‘occurrence’. It was held that this was one occurrence.

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