Discovery turns to SCA over R25m payment ruling
Discovery Life will apply for leave to appeal against a Gauteng High Court order to pay R25m to a man deemed unable to work as a stockbroker.
The man, identified in the court papers as PR, is challenging Discovery Life's failure to pay out his claim for his ‘capital disability benefit’ policy, which covered him in the event of permanent disability.
News24 reports that Discovery said it would now escalate the matter to the SCA after the High Court dismissed its application to appeal its payout judgment last week.
PR suffered from health issues, including ‘a combination of post-traumatic stress disorder and bipolar mood disorder’ following the death of his girlfriend during their holiday in Mauritius in December 2014.
He was arrested in January 2015 and charged with her murder and detained, pending trial.
He was acquitted and returned to SA in March 2016, receiving medical attention in Pietermaritzburg. Discovery Life rejected his claim saying his policy expired in November 2015.
However, the High Court said it was satisfied that PR had been disabled by this date, adding that Discovery Life had no right to reject his claim for a payout without investigating his condition at the time.
Discovery Life said it maintained its previous argument that the High Court ruling would negatively impact the insurance industry.
Marc Martini, the lawyer representing PR, said he issued Discovery Life with a letter of demand for payment.
He gave them until Friday to settle the payment, to which they responded by informing him of the decision to approach the SCA.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
