Hollard Namibia and Gondwana Collection yesterday announced a settlement regarding Gondwana’s Covid-19 business interruption claim, with each reinforcing their commitment to supporting the Namibian economy in the financial services and tourism sectors. 

In 2021, Gondwana Collection Namibia, a major player in Namibia’s tourism industry, turned to the High Court of Namibia to force short-term insurer, Hollard Insurance Company of Namibia, to pay out what it called ‘agreed commitments’ under a business interruption claim. 

Gondwana Collection Namibia’s reason for the claim was for a loss of revenue resulting from insured losses the company suffered due to the Covid-19 outbreak and the state of emergency and related measures implemented by government as a result of the pandemic outbreak in 2020. 

Business interruption claims offer businesses protection against financial losses incurred when businesses are unable to operate. However, in the 12 months or so after the Covid-19 outbreak, these specific types of claims raised questions about whether the intended coverage included pandemic-related losses. “As favourite household brands among Namibians, both companies have consistently demonstrated their commitment to a brighter, more sustainable future for all Namibians. This commitment contributed toward the amicable resolution of the matter, and both parties are satisfied with the outcome,” reads the statement released yesterday. 

In the statement, Gondwana CEO Gys Joubert said it was unprecedented times for the sector as tourism faced significant challenges, forcing many businesses to make tough decisions. Joubert emphasised the need for responsible, client-centric stakeholders and partners to help the wider industry recover and return to pre-pandemic levels.

Hollard Namibia’s CEO Jaco Lamprecht echoed Joubert’s sentiments, saying, “We are pleased to have achieved a harmonious resolution with Gondwana, as it is important that we support businesses in their efforts towards rebuilding their operations post the Covid-19 pandemic.”

The resolution reached between Hollard and Gondwana, according to the statement, demonstrates the effectiveness of collaboration and mutual understanding when it comes to addressing post-pandemic challenges.