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· South Africa’s Hollard Insurance is committed to provide relief to small and medium businesses hit financially during the lockdown
· The decision has come close on the heels of the announcement by the Financial Sector Conduct Authority that insurers agreed to consider paying relief to customers, pending the outcome of several court cases to determine whether insurers should pay clients who were forced to close due to the lockdown
· The relief will be once-off payments to induct liquidity in their hands to enable businesses to keep running
South Africa’s Hollard Insurance is committed to provide relief to small and medium businesses hit financially during the lockdown. The decision has come close on the heels of the announcement by the Financial Sector Conduct Authority that insurers agreed to consider paying relief to customers, pending the outcome of several court cases to determine whether insurers should pay clients who were forced to close due to the lockdown. The relief will be once-off payments to induct liquidity in their hands to enable businesses to keep running.
Hollard has decided to pay clients covered for contagious diseases under the terms of their business-interruption policies and is not waiting for the legal process to conclude, which would take time.
During the lockdown, the South African government allowed only essential services to operate. This had forced many enterprises to stop their operations. Insurers have rejected business-interruption claims filed by the businesses on the ground that it can only result from physical events such as an infection at a company’s premises.
