Loss Flashcards
What are the requirements to make a claim when the insured suffers a loss?
- Timeous notification to the insurer
- Make a formal claim with full particulars of the loss
What if the insured fails to act timeously or provide sufficient details about the loss?
Insurer may be able to repudiate liability.
Can a partly true and partly fraudulent claim allow an insurer to repudiate the entire claim?
Yes (Discovery v Masindi).
Which case deals with the insurer’s duties with regard to repudiating a claim?
Walker v Santam
Which case deals with the onus on insurer to prove that a claim is fraudulent?
Renasa v Watson.
Which case deals with partly true and partly fraudulent claims?
Discovery v Masindi.
What case illustrates that not all dishonesty in insured’s version of events entitle insurer to repudiate?
Molefe v MiWay.
What are the facts of Walker v Santam?
Walker insured a BMW which got damaged beyond repair 2 weeks later. Insurer repudiated with no reason. Walker ended up selling wreckage to avoid storage costs and pay purchase price.
What are the facts of Renasa v Watson?
Fire broke out on premises and two insured were insured by Renasa against loss or damage caused by fire. Renasa claimed claim was fraudulent due to arson
What did the court hold in Renasa v Watson?
It being common cause that the insured’s claim fell within the ambit of the promised protection offered by the policy, insurers bore the onus of establishing their right to repudiate their claims for the reasons pleaded by them on a BOP.
What are the facts of Discovery v Masindi?
Masindi insured household items,s and he submitted a single claim for the loss caused to his property and for emergency accommodation as provided for by the policy. Emergency accommodation claim was fraudulent.
