Santam warns CBI claims process ends this month
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SHORT-TERM insurer Santam yesterday issued another appeal to its clients with contingent business interruption (CBI) policies to submit their claims and supporting documentation before August 31.
A total of 3 252 policyholders have notified Santam of their intention to formulate and submit CBI claims. However, slightly more than 60 percent of these clients had submitted claims information, it said.
The policy wording required that the statement of particulars of a claim be formulated and submitted within 30 days of the end of the relevant period stipulating the length of cover, while most CBI policies had cover limits of between three and 12 months, Santam said.
Santam Group chief executive Lizé Lambrechts said: “We are very concerned that despite our previous communications, nearly 40 percent of the clients who initially indicated their intention to submit CBI claims have still not provided supporting documentation.”
Santam said it had made a financial provision of R3 billion for net CBI claims. It had paid R1.6bn, including R600 million to policyholders by mid-July and R1bn in interim relief paid to 2 500 policyholders in August last year.
“We are very concerned that there could be clients who are experiencing hardship but have not submitted information to enable the assessment and settlement of their claims. They effectively have a month to do so,” Lambrechts said.
BUSINESS REPORT ONLINE