Category Legal Affairs

The Covid-19 restrictions and impact in insurance claims

06 November 2020 Maria Philippides & Patrick Holloway, Partners at Webber Wentzel
Maria Philippides, Partner at Webber Wentzel

Maria Philippides, Partner at Webber Wentzel

Patrick Holloway, Partner at Webber Wentzel

Patrick Holloway, Partner at Webber Wentzel

The Covid-19 restrictions

The Covid-19 global pandemic has caused disruptions to economies around the world and it is no surprise that the South African economy has not been spared. While the most devastating effects of the disease have been the number of infections (over 38 million worldwide) and number of deaths (over one million), its economic consequences cannot be understated.

In South Africa, the impact on many businesses has been catastrophic and the hospitality sector in particular, has felt the brunt of the disease. Suddenly and out of nowhere, bookings were being cancelled and the very existence of hotels, pubs and restaurants, came under threat. As a natural consequence, businesses turned to their insurers for assistance. The insurance sector braced itself as the South African government took steps to deal with the pandemic, which in turn has had an impact on the way insurers have dealt with claims.

The aim of this article is to examine how insurers in South Africa have dealt with claims presented to them for losses suffered by policyholders during the Covid-19 pandemic.

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