Cape Town – Months after making a Business Interruption Covid-19 claim with insurer Santam, the Thebe Tourism Group, which operates a concession stand at Cape Point, said it finally received feedback, but the payout was not what it was hoping for.
Thirty of the group’s employees at the park have been affected by the effects of the lockdown.
The shop and restaurant remain closed as there aren’t enough visitors to justify its opening, while the funicular can’t open yet because it’s designated as a leisure activity.
Thebe Tourism Group financial manager Cobus du Plessis said they submitted a claim via a broker on April 30 and were contacted by a loss adjuster on May 20, after numerous follow-ups.
He said the insurer responded on July 2 to say they had to prove there was an infected person within 40km of their premises that resulted in the interruption of business.
“We felt neglected by the insurer, we made the claim such a long time ago,” Du Plessis said.
Santam yesterday said the tourism group qualified for its relief payment to policyholders in the hospitality, leisure and non-essential retail services industries who have Contingent Business Interruption extension in their policy cover – and accepted the relief payment offered on August 6.
They said their average payout time was around five days.
“Relief payments are calculated at 70% of two months sum insured and are set at a minimum of R25 000 and a maximum of R1.5 million for individual CBI policyholders. Santam received the necessary required documents on Tuesday, August 11 – the average time from receipt of the required documentation by Santam to payment is less than five days,” it said.
Du Plessis said they were disappointed it was not the full claim.
“They need to work on their communication with customers. They’re fast now when the media is involved.
’’We’re glad for the payment, but still wish it was the full claim, people have been without work since March,” Du Plessis said.
The Financial Services Conduct Authority, meanwhile, last month instructed insurers to pay Business Interruption Claims and warned it would take action against insurers who did not treat their customers fairly.
Ryan Woolley, chief executive of Insurance Claims Africa, a specialist public loss adjustment company representing over 500 businesses in the tourism and hospitality sector, said they wrote to the minister of finance requesting intervention in the matter to facilitate potential settlement discussions.
Cape Times