Insurance Law News
More newsHigh Court clarifies insurer liability in Biovac v Guardrisk
The recent judgment in the Johannesburg High Court involving the Biologicals and Vaccines Institute of Southern Africa (Pty) Limited (Biovac) and Guardrisk Insurance Company Limited (Guardrisk) has provided important guidance for non-life insurers on the limits of policy repudiation, especially where regulatory non-compliance and alleged misrepresentation are at issue. The case arose after a fire at Biovac’s Cape Town facility, where losses were split between two insurers. While Allianz (having insured half of Biovac’s facility) settled its portion of the claim, Guardrisk repudiated Biovac’s claim, prompting Biovac to initiate legalproceedings.
Plugging the hole in the cell captive fence before the wheels come off
The Financial Sector Conduct Authority (FSCA) and the Prudential Authority’s (PA) (collectively, the Authorities) failure to provide further guidance regarding the requirements and ambit of the specific form of contractual ring-fencing required in terms of the Insurance Act 18 of 2017 (Insurance Act) in the context of cell captive arrangements, if not rectified, could lead to scenarios that defeat the objectives of cell captive arrangements by undermining the various benefits offered by cell structures, namely, improving the financial sustainability of the cell captive insurancesector.
Dying for a cash in: Life insurance claims amid criminal investigations
South Africa grapples with one of the highest crime rates in the world, driven by a multitude of factors. The South African Police Service (SAPS) is significantly outnumbered by offenders, and its efforts are hampered by a lack of resources and inadequate training. Unfortunately, this situation has become a norm rather than an anomaly for SouthAfricans.