Tag archives: Indemnity

Exploding vape excluded from policy by ‘products completed’ exclusion

An electronic cigarette store failed in its claim for an indemnity from its insurer for a vape battery that exploded in a customer’s pocket away from its premises. The policy excluded an event “occurring on any premises other than the designated premises shown in the schedule”. The products-completed exclusion clearly precluded coverage for bodily injury … Continue reading

Hospitality guest indemnity upheld under Consumer Protection Act

Author: James Donald, Candidate Attorney In an April 2021 judgement, the Eastern Cape high court held that a standard form guest indemnity used by a game reserve was not in conflict with applicable provisions in the Consumer Protection Act 2008 (the CPA). The plaintiff was a tourist to South Africa, on holiday at a local … Continue reading

Confusion over reinstatement value conditions

An insurer’s obligation to indemnify the insured does not arise until the insurer has elected whether to indemnify in money or by reinstatement. The election must be made within a reasonable time. Mutual & Federal concluded an insurance contract with the liquidators of Expectio Properties and agreed to indemnify the insured for damage to the … Continue reading

Interest on insurance awards

The Supreme Court of Appeal has ordered an insurer to pay interest from the date upon which the indemnity should have been furnished rather than the date the insured issued a summons. In Viking InShore Fishing vs Mutual & Federal Co Ltd the court found that the insurer was liable to pay the claim relating to … Continue reading

Effect of ‘pay to be paid’ wording

An Australian case dealt with a pay-to-be-paid wording according to which the insurer would indemnify the insured “in respect of all sums which the insured shall become legally liable to pay, and shall pay, as compensatory damages.” The court held that the words “and shall pay” did not mean that the insurers did not owe … Continue reading
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