On Thursday, 08 October 2021, short-term insurer, Santam lost an appeal against a decision by the High Court (Western Cape) that it must pay out contingent business interruption claims to Ma-Afrika Hotels and Stellenbosch Kitchen for the full 18-month period covered in their insurance policies.

After Santam argued that its policy wording meant it was only liable to pay out for three months, the Supreme Court of Appeal berated the insurer for its attempts to avoid liability through their series of “twisted and turned” policy arguments.

The judgment is detailed and gives a very good and sensical approach to the purpose of insurance cover; what the reasonable insured would expect; and the difficulties that arise when insurers craft overly complicated policies and insurance schedules.

Insurance Law Expert at Barnard Incorporated Attorneys, George Herbst, stressed that the more complex the construction of the contracts, the greater the chance of internal ambiguity and contradictions. Consequently, the courts are bound to favour the insured and give the benefit of the doubt and confusion to them. “A plain language approach in constructing policies is far favourable and care should be taken to properly vet the contracts and schedules. Product designers and actuaries who craft these documents may understand them, but in the end, the lawyers and members of the public should be able to comprehend them too.”

Important lessons can be taken from this judgment and together with the referenced recent judgments, constitute a massive and valuable evolution of the jurisprudence on the complexity of insurance contracts. 

Contact:
GEORGE HERBST | INSURANCE ATTORNEY
Barnard Incorporated Attorneys
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Mobile: 072 332 3638

Just over 200 delegates attended the official opening of the Western Cape Wildfire Season at the Lourensford Wine Estate, Somerset West, today, 28 November 2018 which was held under the auspices of the Western Cape Umbrella Fire Protection Association (Representing all five Fire Protection Associations).

Anton Bredell, the Minister of Local Government, Environmental Affairs and Development Planning in the Western Cape, reminded the audience that wildfires this year have already led to nine fatalities. 

“Every year the fire season seems to be getting worse. Conditions across the province are hazardous following the devastating three-year drought that has seen lots of brush and veld die. If the veld catches alight and the wind takes the flames, the results can be devastating.

”To showcase some of the resources that are available in the upcoming fire season, Working on Fire (WOF) ground and aerial crews (One fixed Wing Spotter Plane, two Huey Helicopters and two Air Tractor 802 water bombers) supported by NCC and City of Cape Town firefighters participated in a firefighting demonstration. 

This fire demonstration highlighted the interaction between ground and aerial firefighting teams and clearly demonstrated how an integrated response is needed when dealing with a wildfire, especially in its initial stages.

“We have access to eight helicopters, four water bombers and eight spotter command and control aircraft that can be deployed to incidents across the province. There are 36 runways available and prepared for these aircraft to utilize in case of need”, Bredell said.

“These aerial resources will be complemented by 1550 municipal firefighters across the province, bolstered by approximately 1020 seasonal firefighters (municipal and other organisations). There are also 27 WOF teams with about 700 firefighters in the Western Cape, and an additional 500 firefighters in other provinces who can be called upon if required”.

The official opening of the fire season also coincided with the hosting of the first major Wildfire Ready Convention in the Western Cape at the same venue, from 28-29 November 2018. 

Key partners at the launch and Widfire Ready Convention included amongst other Working on Fire, Kishugu, SANParks, CapeNature, Western Cape Provincial Disaster Management Centre and City of Cape Town Fire and Rescue.

This two-day convention is focussing on the future of targeting wildfires in the Wildland-Urban Interface (WUI) and several international (USA and Europe) speakers and local fire authorities and fire protection associations are in attendance.  

Both the National Disaster Management Centre (NDMC) and the Western Cape Provincial Disaster Management Centre (PDMC) will also make contributions on how fire authorities can prevent and prepare for fire disasters.

The key focus will be on how, through Integrated Fire Management and its four operational components - reduction, readiness, response and recovery - linked to the Wildland-Urban Interface as the distinct focus, fire authorities can concentrate not only on how to fight these fires, but also share best practices for the prevention and mitigation of wildfire events.

One of the main sponsors of the #WildfireReady Convention, Santam, applauded the organisers and those attending for being proactive in making sure that everyone involved in wildfire management, including communities and landowners, are working towards the same objectives.

John Lomberg, Stakeholder Relationship Manager at Santam said, “It is becoming harder to ignore the fact that climate change has become the “new normal” and that this demands a new response from businesses – and the communities in which they operate. It is for that reason that we support initiatives like the Wildfire Convention. We have to respond with the urgency for transformative collaboration to address the challenges brought about by climate change”.

“The sustainability of our organisations and resilience of our communities is dependent on our ability to cooperate and partner with each other to achieve our respective business and societal objectives’, Lomberg said.