This blog is co-authored by Yuveshen Naidoo, candidate attorney.
In August 2025, the Florida appellate decision held that the insurer was entitled to deny a hurricane claim reported three years after the event, because the insured breached the policy’s notification obligation. The policy required “prompt notice” of any loss. South African courts would likely reach the same result, given similar policy wording, and legal principles. Courts consistently enforce the requirement for policyholders to notify insurers of claims “promptly” or “within a reasonable time.”
The Third District Court of Appeal in Florida affirmed that the insurer could deny a claim for hurricane damage reported years after Hurricane Irma. The insured waited more than three years to notify the insurer of the damage. The court found this delay breached the notification obligation, referencing previous cases where similar delays led to denial of claims. The reasoning was clear in that policyholders must act “with reasonable dispatch and within a reasonable time” after discovering damage.
Prompt notice clauses serve practical and legal purposes. Insurers need to investigate claims while evidence is fresh delays can result in lost evidence, faded memories, and increased risk of disputes. Enforcing these clauses helps insurers manage risk and maintain the integrity of the claims process. Reserving issues and closing non-life insurance books are important.
Courts interpret “prompt notice” as requiring notification “with reasonable dispatch and within a reasonable time.” In South African insurance policies, wording such as “as soon as reasonably practicable” or “within 30 days of the event” is common.
South African courts have addressed notification clauses in insurance policies. The court said that the phrase “as soon as reasonably practicable” is “nebulous,” but still enforced the requirement for timely notification. A delay of two months was not fatal in that case but longer delays especially where evidence is lost or prejudice to the insurer is shown would likely result in denial of the claim.