In a victory for hundreds of small businesses facing ruin because of Covid-19 and the resulting lockdown, SA's financial services regulator has come out strongly against insurers refusing to pay out on claims caused by losses resulting from the pandemic.

The Financial Sector Conduct Authority (FSCA) says it will take action against short-term insurers which continue to reject claims under business interruption policies on the ground that losses were caused by the national lockdown and not the infectious or contagious notifiable disease covered by the policies. The companies, including divisions of heavyweights such as Sanlam and Old Mutual,  face claims of about R4bn from more than 500 businesses in the tourism and hospitality sector for the loss of business under the lockdown which was triggered by the Covid-19 pandemic...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now