INSURERS TO PAY OUT BILLIONS IN RELIEF FUNDS

In a landmark agreement, short-term insurers agreed to pay relief funds to policyholders in the hospitality and leisure sector that had extended business interruption insurance to cover contagious disease. As City Press has previously reported, most insurers have taken the position that a national lockdown does not constitute a claim under business interruption insurance.

Policyholders, however, argue that, as the extended benefit specifically mentions claims in the event of closure owing to a contagious disease, it should be payable as the lockdown is a direct result of the Covid-19 coronavirus pandemic.

The matter will be decided in court, but, given the