Hollard, Gondwana reach compromise on Covid claim

Insurance provider Hollard Namibia has reportedly finally agreed to settle Gondwana Collection’s N$638 million business interruption claim, but not for the entire amount.

It is not clear how much the two have agreed to settle on, as they said the amount was confidential.

According to a joint statement released by the two companies yesterday, the out-of-court settlement was to reinforce their commitment to supporting the Namibian economy in the financial services and tourism sectors.

The two companies had been at each other’s throats, with Gondwana claiming that Hollard was dragging its feet on paying out its business interruption claim of up to N$638m.

The Namibian understands that Gondwana insured its business with Hollard for almost 30 of its lodges and accompanying facilities.

Hollard’s defence was that it was not dragging its feet, but it had the right to investigate whether the claim, as applied by Gondwana, was a true reflection of what the company could claim under its policy.

At one point, Hollard alleged that the claim seemed “heavily and unnecessarily inflated” and that Gondwana was not “providing sufficient information” for investigations.

This back and forth brawl led them to court, where still no clarity was established.

It was also expected when the pandemic struck that the regulator of insurance companies, which doubles as a consumer protector, would set a standard on claims under the pandemic, but it did not.

A business interruption insurance protects the earnings of a business by replacing lost income or profit that would have been earned by the business had the interruption to the business not happened.

According to the joint statement, both companies have consistently demonstrated their commitment to a brighter, more sustainable future for all Namibians, and this commitment contributed towards the amicable resolution of the matter, and both parties are satisfied with the outcome.

Gondwana chief executive Gys Joubert said the time of Covid-19, when the company submitted the claim, was unprecedented and the main priority were the employees and guests.

At the time, the company had 1 200 employees.

He added that the tourism industry faced significant challenges, forcing many businesses to make tough decisions, and having client-centric stakeholders and partners to help the wider industry recover and return to pre-pandemic levels was crucial.

His company had not received this support from Hollard, but he said he was encouraged by the settlement and the certainty it offers for the future.

Hollard Namibia’s chief executive, Jaco Lamprecht, said his company was pleased to have achieved a harmonious resolution with Gondwana, as it is important that they support businesses in their efforts towards rebuilding their operations post the Covid-19 pandemic.

“We remain committed to providing clients with solutions customised to their needs and offering financial security through the reliability of our products and services, especially during challenging times. Our customers and partners are at the core of our business and we continue to offer them our utmost support and respect,” he said.

Email: lazarus@namibian.com.na
Twitter: @Lasarus_A

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