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Ma-Afrika Group challenges insurance companies’ refusal to honour claims

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A hotel and restaurant group in Cape Town is asking the courts to compel large insurance companies to honour their COVID-19 business interruption claims.

As Tourism Month kicks off in South Africa, the hospitality and tourism industry is still grappling with the impact of the pandemic, with losses estimated to run into billions.

Ma-Afrika Group is challenging insurance companies’ refusal to honour claims lodged before and after government’s imposed lockdown.

Ma-Afrika operates a number of hotels and a restaurant in Cape Town and Stellenbosch.

It says the COVID-19 pandemic has brought its businesses to a standstill with losses of more than R5 million.

The group has five insurance policies with financial services company, Santam.

But it says the insurer is refusing to honour its claims.

Specialist public loss adjustment firm Insurance Claims Africa which represents over 700 businesses has joined in the litigation.

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