AIG South Africa Limited and Others v Azrapart (Pty) Ltd and Another

The respondents, co-owners of Fourways Mall, procured an insurance policy through brokers to cover, inter alia, business interruption losses, including Infectious and Contagious Disease (ICD) cover. During negotiations in 2019, multiple quotation slips were exchanged under POLDRA rules. While an early quotation slip omitted ICD cover without highlighting the omission, subsequent placing slips and the final policy included ICD cover. The appellants (insurers) accepted and signed the placing slip and policy. Following COVID-19 related business interruption losses, the respondents claimed indemnity. The insurers resisted liability, contending that the ICD clause was included by mistake and sought rectification to delete it. The High Court rejected the rectification defence. On appeal, only the fifth appellant persisted, arguing that antecedent agreements excluded ICD cover and that the policy should be rectified.

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

The case reinforces strict requirements for rectification of insurance contracts in South African law, particularly in the context of complex commercial insurance negotiations. It affirms the primacy of the placing slip and final policy under POLDRA rules and underscores that insurers cannot rely on unhighlighted omissions in antecedent documents to defeat cover, especially for COVID-19 related claims.