THE Bulawayo High Court has ordered Zimnat General Insurance to pay more than US$2,4 million to three Victoria Falls tourism operators, ruling that losses incurred during the COVID-19 pandemic are covered under their business interruption insurance policies.
In a consolidated judgment delivered by Justice Mpokiseng Dube, the court ruled in favour of Africa Albida Tourism (Pvt) Ltd, Victoria Falls Safari Lodge Hotel (Pvt) Ltd, and Spencers Creek (Pvt) Ltd — operators of Ilala Lodge.
The insurer was ordered to pay US$1 066 239 to Africa Albida Tourism and Victoria Falls Safari Lodge under case HC1800/22, and a further US$1,4 million to Spencers Creek under case HC1801/22.
Zimnat must pay interest at 5% per annum from the date summons were served, alongside the costs of suit.
The claims stemmed from policies that covered losses caused by the occurrence of a “notifiable contagious or infectious disease” at insured premises.
The tourism operators argued that the presence of COVID-19 at their properties in March 2020 triggered the cover, leading to operational shutdowns before the national lockdown.
According to court papers, an elderly couple, Mr and Mrs O’Shaughnessy, stayed at Ilala Lodge in March 2020 and allegedly contracted COVID-19 while in Victoria Falls.
Employees who came into contact with the pair later developed flu-like symptoms associated with the virus, creating widespread concern and operational disruptions.
- Young entrepreneur dreams big
- Chibuku NeShamwari holds onto ethos of culture
- Health talk: Be wary of measles, its a deadly disease
- Macheso, Dhewa inspired me: Chinembiri
Keep Reading
The subsequent national lockdown imposed by the government later that month forced the closure of their businesses for at least three months, resulting in major financial losses.
Justice Dube found that, on a balance of probabilities, COVID-19 had, indeed, occurred at the insured premises and that the businesses suffered interruption losses covered by the policies.
He was particularly scathing of the insurer’s handling of the claims process, criticising its use of an irrelevant “Fire, Lightning and Storm” claim form for a pandemic-rented claim.
“I am convinced that plaintiff's business was interrupted due to the occurrence of COVID-19 at their premises,” Justice Dube ruled.
The court accepted the evidence of medical expert MD Jeans, who testified that the symptoms displayed by the tourists and employees were most likely consistent with COVID-19, especially given the absence of testing facilities in Victoria Falls at the time.
In contrast, Justice Dube rejected the testimony of the insurer’s expert witness, Knowledge Chemayi, describing his evidence as biased and less persuasive.
The landmark ruling is expected to have significant implications for future business interruption claims arising from pandemics and other public health emergencies.
