COVID-related claims from just over 500 small South African firms battling insurers who have rejected them are worth up to ZAR4bn ($236m), the firm representing the businesses has calculated.
Loss adjustment firm Insurance Claims Africa (ICA) is pushing a host of South African insurers including Santam, Old Mutual, Hollard and HIC Underwriting Managers to make payouts under business interruption policies sold to its clients.
The clients are firms in the hospitality and tourism industry now on the cusp of closure after virus restrictions bought their businesses to a standstill.
ICA CEO Ryan Woolley told journalists on Wednesday that its calculations showed their claims amounted to be between ZAR3.5bn and ZAR4bn in total, though it had offered the relevant insurers reduced amounts to settle the matter.
“We will continue to discuss it with all the insurers,” he said, and added that ICA would definitely launch legal action against Santam and HIC, and could do the same against several others.