South Africa Case Law

43 AIR School Holdings (Pty) Ltd and Others v AIG South Africa Ltd (30404/2021)

43 AIR School Holdings (Pty) Ltd and Others v AIG South Africa Ltd (30404/2021) [2023] ZAGPJHC 186 (20 February 2023)

Court

South Gauteng High Court, Johannesburg

Case number

30404/2021

Judge

S C Mia

The High Court held that the AIG policy covered 43 Air School’s related entities and ordered AIG to compensate business interruption losses for the lockdown period.

• Insurance Contract Interpretation
• Business Interruption Cover
• Composite Policy
• Causation In Insurance
• Declaratory Relief
• Business-interruption-insurance

Ma-Afrika Hotels (Pty) Ltd and Another v Santam Limited (6499/2020)

Ma-Afrika Hotels (Pty) Ltd and Another v Santam Limited (6499/2020) [2021] ZAWCHC 32 (22 February 2021)

Court

Western Cape High Court, Cape Town

Case number

6499/2020

Judges

Goliath, Cloete, Mantame

The High Court granted leave to appeal on a policy-interpretation dispute over whether business interruption indemnity was limited to 3 months or 18 months.

• Insurance Policy Interpretation
• Business Interruption Cover
• Indemnity Period
• Contra Preferentem Rule
• Insurance-policy-interpretation
• Business-interruption-cover

PFC Food CC v Three Peaks Management (Pty) Ltd (5573/2009)

PFC Food CC v Three Peaks Management (Pty) Ltd (5573/2009) [2012] ZAKZDHC 57 (10 September 2012)

Court

Kwazulu-Natal High Court, Durban

Case number

5573/2009

Judge

Sishi

The court found that the defendant, as insurance broker, failed to act with reasonable care and skill in advising the plaintiff on business interruption insurance. The defendant did not obtain sufficient financial information, did not explain the calculation of business interruption losses, and failed to warn the plaintiff about the risk of under-insurance and the application of average. The evidence showed that the plaintiff relied on the broker for advice and would have increased cover if properly advised. The defendant's reliance on the plaintiff's instructions was insufficient, as the bro…

Source excerpt

• Insurance Broker Liability
• Business Interruption Cover
• Reasonable Care And Skill
• Quantum Of Loss
• Average Clause Application

African Products (Pty) Ltd v AIG South Africa Ltd (659/2007)

African Products (Pty) Ltd v AIG South Africa Ltd (659/2007) [2009] ZASCA 27; 2009 (3) SA 473 (SCA) ; [2009] 4 All SA 99 (SCA) (27 March 2009)

Court

Supreme Court of Appeal

Case number

659/2007

Judges

MPATI, BRAND, CLOETE, CACHALIA, BOSIELO

The court held that the phrase 'unforeseen and sudden' in the insurance policy must be interpreted cumulatively, with 'sudden' given its temporal meaning of 'abrupt' or 'occurring quickly'. The damage to the cables was not sudden, as it resulted from gradual deterioration of the PVC insulation over a lengthy period, even though the failure manifested itself abruptly. The physical damage occurred when the insulation wore away, exposing the copper conductors, which inevitably led to failure. The manifestation of the damage was sudden, but the actual damage was gradual. Therefore, the appellant'…

Source excerpt

• Insurance Policy Interpretation
• Business Interruption Cover
• Contractual Construction
• Contra Proferentem Rule