There have been two crucial ‘black swan events’, within the last two years, which will force commercial insurers to re-look at their cover limits and exclusions carefully, as well as the message that these events delivered. We cannot think that because the wordings and covers have worked well until now that they are adequate and […]
Policy wordings with respect to COVID-19
Policy wordings with respect to COVID-19 When COVID-19 arrived on South Africa’s shores, in March 2020, it impacted the entire South African economy and was completely unforeseen by Government and the Private Sector, and the financial services industry was no different. As the potential impact of COVID-19 became clearer, the Government had no choice but […]
Getting to grips with contractual versus delictual liability
To get to grips with liability insurance you need a clear understanding of the difference between contractual liability and delictual liability. These legal terms for specific liability are also relevant to understanding the cover offered on insurance policies. Before I explain why, I will share the practical impact of these terms. Negligent loss or damage […]
Update on the FCA Judgment on Business Interruption lockdown claims
The highly publicised legal dispute between British insured and the Financial Conduct Authority concerning whether insurers will be forced to indemnify policyholders for business interruption losses suffered as a result of the various government-imposed lockdowns has now finally been settled by the UK Supreme Court. They upheld the original judgment of the UK high court […]
Business Interruption claims as a result of Covid 19 lockdowns in South Africa
Major court decisions underway in South Africa, Australia, and the United Kingdom Business Interruption is a section in a commercial policy (either standard commercial, assets, hospitality, or agriculture policies) that covers loss of profits or increased cost of working for a company as a result of an interruption caused to their business. Normally the interruption […]
Commercial and legal risks that businesses are likely to face during this period
Pandemic redefines the commercial and legal risk landscape We are more than 60 days into the national lockdown and the number of infections in South Africa now exceeds 24 000. And we have only just transitioned from a situation where only essential service providers were permitted to operate, to a slightly softer lockdown under level […]
Covid-19 and its impact on Insurance Policies
The pandemic of COVID-19 has impacted the world probably more than any other event since the second world war. Not since 1945 have we literally seen the entire world affected and disrupted as it is now. More than half the world’s population is in some kind of lockdown and are restricted in their economic and […]
Outsourcing- How to make sure it does not end in disaster
With careful due diligence outsourcing is still a very effective way of providing quality service to customers There are many reasons for Insurers, if and when they decide to outsource functions that are integral to the various insurance products that they sell. Circumstances have changed a lot over the years from the time when Insurers […]
South Africa introduces new Policyholder Protection Rules
Policyholder requests for information must be given Failure to carry out a client’s instructions: Where a client has signed the necessary authority for another broker to obtain sufficient information on his policies to provide another quote, you may not refuse to provide ALL information requested by the other and this includes replacement advise as well […]
Reinsurers and jurisdiction- interesting case
South African court dismisses claim A new judgment has just been released in South Africa concerning which courts would have jurisdiction in a matter where the primary insurer (fronting for an overseas reinsurer) rejects a claim and is based in Mozambique and the client who wishes to sue as a result of the rejection chooses […]