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Tourism sector faces sustainability crisis as insurance claims are rejected

June 11, 2020

Husain Mohamed – 11/06/2020  

One of the country’s biggest economic sectors, tourism and hospitality is facing a total collapse.

While the larger part of the economy has been reopened for business, most hotels, game lodges and nature reserves are only open for business travel or daily self-drive excursions, while restaurants are still banned for sit-down meals.

To add to the crisis in the industry, it has emerged that insurance companies are rejecting claims related to the Covid-19 pandemic. Insurance Claims Africa (ICA), a specialist public loss adjustment firm, has over 400 claimants in this sector against many insurers.

To discuss this Radio Islam spoke to Ryan Woolley who is the chief executive of Insurance Claims Africa. He says Insurers are rejecting claims because, they are blaming the economic losses on the lockdown and not the pandemic, even though the lockdown is because of the pandemic.

“Insurers have extended policies to cover something called infectious and notifiable diseases, and now they are turning around and saying that it’s not the notifiable disease in Covid-19 that’s causing losses, it’s the government restrictions and lockdown that is.”

Woolley adds that this is nonsensical as notifiable diseases anticipate quarantines, restrictions, etc.

Listen to the full interview here:

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