Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Old Mutual accepts liability in business interruption claims

Home National Old Mutual accepts liability in business interruption claims
Old Mutual accepts liability in business interruption claims

Old Mutual has decided that it will accept liability in Business Interruption claims, but only in instances where the insured businesses complied with the requirements of the specific policy, as interpreted in the recent relevant court judgements. The decision comes following recent media reports and allegations about certain insurance clients who submitted business interruption claims to Old Mutual, following the presence of the Covid-19 pandemic and the resultant government actions. 

“The complex question as to whether clients with Business Interruption (BI) extensions for infectious and contagious diseases are entitled cover for the Covid-19 pandemic has been the subject matter of a number of court cases. Guided by such court judgements, Old Mutual has decided to accept liability in those cases where the insured complied with the requirements of the policy, as interpreted in the relevant court judgements,” read a statement from Riaan Vermeulen, managing director of the Old Mutual Short-Term Insurance Company.  

Vermeulen said Old Mutual’s liability is subject “firstly, to assess to what extent the insured event may have caused the loss, and secondly, consideration of the quantum and related circumstances unique to each insured, bearing in mind that with different policies and factual circumstances underlying both liability and quantum, it will not be possible to adopt a one-size-fits-all approach”.  

He added that Old Mutual will also have to consider the insured’s specific circumstances in light of the fact that relevant court judgements did not deal with all issues that might arise in relation to its policies.  Every case, he noted, is therefore being considered and decided on its own merits. 

“Given a fair amount of guidance obtained from relevant court judgements and because Old Mutual recognises the urgency of the matter, we are in the process of engaging with all insured clients who believe that they have submitted valid claims in terms of their policies. It is, therefore, unfortunate that incorrect information surfaced in the media whilst we are in the process of engagement and quantification of these losses,” Vermeulen stated.

He said Old Mutual strongly objects to allegations that they are ‘refusing’ to pay valid Business Interruption claims, saying that Old Mutual remains committed to treat all customers fairly, and will settle all valid claims.