Isando Foods (Pty) Ltd v Fedgen Insurance Company Limited

Isando Foods (Pty) Ltd conducted a seed-oil extraction business from premises in Isando which it had purchased from Epic Oil Mills (Pty) Ltd but which had not yet been transferred due to ongoing litigation. While Isando Foods was in occupation, a fire on 13 September 1996 damaged a seed-oil extraction plant situated on the premises. The plant had been constructed by Epic and improved by Isando Foods at significant cost. At the time of the fire, Isando Foods held a fire insurance policy issued by Fedgen Insurance Company Limited covering, inter alia, plant and machinery 'for which the insured is responsible'. Isando Foods claimed under the policy for reinstatement costs and consequential losses. Fedgen denied liability, contending that the damaged plant was not property for which Isando Foods was responsible under the policy.

The appeal was dismissed with costs, including the costs of two counsel.

The case is significant for South African insurance law as it clarifies the meaning of the phrase 'property for which the insured is responsible' in insurance policies. It confirms that such wording limits the insurer’s liability to the insured’s interest in the property rather than identifying the insured items, and it explains how responsibility for loss is assessed where ownership and occupation are separated.