Several lawsuits were filed through individual companies, mainly in tourism and hospitality, after insurers told them that their policies did not cover the locks by coronavirus.
One case would be aimed at providing legal certainty in this area, said Makgompi Raphasha, head of insurers and pension fund directors of the Financial Sector Conduct Authority (FSCA).
“It is too early for FSCA to say when the case will be heard or when legal certainty can be achieved,” he said in an email response to the questions, adding that consultations with stakeholders should be concluded first.
The UK Financial Conduct Authority (FCA) has already taken legal action in its own case style, which may be only 370,000 insured, and questions have been raised as to whether FSCA would take a similar approach.
Cases filed through individual corporations are based on express policy language and are thought to apply only to a single insurer or even a specific plaintiff.
A South African court has already ruled in favor of plaintiff Cafe Chameleon in a case opposed to that of the country’s fourth-largest non-life insurer, Guardrisk. But the insurer appeals and others say the judgment applies to their policies.
Two other primary South African insurers, Old Mutual and Santam, told Reuters that they would be willing to participate in a check case if FSCA released one.
They, along with others in the industry, have submitted interim emergency bills or customer agreements, many of whom are on the brink of failure, are affected by FSCA and damage the reputation of their position.
(Report through Emma Rumney edited through Promit Mukherjee and Susan Fenton)
Photograph: Demonstrators in the hotel industry protest blockade regulations on the streets near the Cape Parliament, South Africa, on Friday, July 24, 2020. People from hospitality and catering institutions marched through Parliament to raise awareness of the decline of industry. revenue amid the COVID-19 blockade. Photo Credit: AP Photo / Nardus Engelbrecht.
Related:
Was this item valuable?
Thank you! Tell us what we can do with this article.
Thank you! % of other people found this article interesting. Please tell us what you liked.
Receive the insurance industry newsletter
Notify me of comments by email
We have updated our privacy policy to be clearer and meet the new needs of the GDPR. If you continue to use our site, you will accept our revised privacy policy.