Old Mutual Insure loses case against Cape Town retailer’s Covid-19 claims
Court rules insurers must have envisaged virus response could extend beyond defined area
Old Mutual Insure has lost a legal case against a Cape Town-based retailer of luxury travel goods company that took it to court after it refused its business interruption claim following the closure of its flagship store at the V&A Waterfront and other outlets due to Covid-19 pandemic and subsequent lockdown.
The Western Cape High Court on Wednesday ruled that Old Mutual Insure must indemnify Interfax for losses caused by the pandemic and its associated lockdown up to the maximum insured amount of R17.6m. Interfax, which operates Luggage Warehouse stores at the V&A Waterfront as well as in Kenilworth and Bellville, argued that the pandemic and the regulatory response to it had been “catastrophic” to its business and 40 employees...