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January 1989
On taking care

Most short-term insurance policies contain a condition that requires the policyholder to “take all reasonable precautions to prevent accidents and losses”.
In days gone by, especially under liability policies, the condition was more explicit...

January 1989
Freedom with laws

Since his appointment as Registrar of Financial Institutions in June 1987, Theo van Wyk has quickly established himself as an independent thinker and indeed, a firm supporter of the principles of free enterprise.
Responsible for managing 12...

January 1989
Taking advantage

Few people have the financial capacity to handle a large medical expense, such as an emergency operation or cancer treatment. In general, claims are received far more frequently than most other classes of short-term insurance, so the medical aid...

January 1989
The female touch

The 1988 life assurance market is dramatically different from that of the sixties or even the seventies. Although many factors have contributed to the changes that have taken place, one that has most strongly influenced the market-place and the...

January 1989
No worry

Obtaining travel insurance is often a complex and bewildering exercise. People are uncertain how much or how little cover to purchase before going abroad. The variety of premium costs involved only increases the difficulty of the task.

January 1989
Deformed reform

At a black businessmen’s seminar late last year, Martin Sweet, senior manager legal services, Charter Life, discussed certain new taxes.
His comments are most relevant for those of us struggling to save in a highly inflationary environment,...

January 1989
Aiding assurers

The life assurance industry in South Africa is a highly complex and developed business. Negotiations play a definite role in mapping out the answers to current issues affecting the industry, particularly in relation to the policyholder. To...

January 1989
Lack of trust

The Americans seem to have a problem with their image, particularly when it comes to short-term insurance.
Says Albert Millus in Best’s Review, “Insurance in the US is a business not a profession. It is a way to make money, not a public...

January 1989
Double trouble

Despite vehement argument and counter argument about how life assurance companies should be taxed the authorities seem no nearer a solution. Competitor financial institutions argue that life companies pay too little tax. Certainly, the life...

January 1989
Old tricks

The subject of retirement is often one to be avoided by most people throughout their youth. But slowly the inevitable creeps up and before we know it most of us are having to face the most testing time of our lives.
One of the major factors...

January 1989
Few complaints

Considering that there are some 5m life policies in force within the Republic, the 200 complaints that were sent to the ombudsman last year may seem insignificant.
Also during the year 91 cases were finalised. If everyone knows about the...

January 1989
For love nor money

A man can no longer name an “undesirable” third party as beneficiary of his estate without his wife’s written consent. A few years ago it was not unheard of for a man to leave his full estate to a woman he was having an affair with, thereby...

January 1989
Ensuring order

In the life assurance industry competition is fierce and every possible advantage is exploited to the fullest. A few years ago competition largely centred around the projected values of future policy benefits hut some intermediaries began quoting...

January 1989
Growing fast

Despite the stock market crash in October 1987 and the doubling of life assurance tax in the March 1988 budget, the industry continued to show the most remarkable growth of any in the country.
According to Life Offices’ Association (LOA)...

January 1989
Why pay more?

The 1988-89 Budget Speech drastically affects the deductibility of medical aid contributions from gross income.
According to Chris Cunningham-Moorat, MD of Bensure Management Services, “It will just be a vicious spiral. There will be more...

January 1989
Needs not met

The life assurance industry is looking towards new markets, the general feeling being that existing markets have virtually been exhausted.
The trend is towards the black market because, amongst other things, of the perceived needs of the...

January 1989
Testing, testing

All 36 members of the Life Offices’ Association (LOA) are now required either to add an AIDS (Acquired Immune Deficiency Syndrome) exclusion clause to their life policies, or to test potential policyholders for the virus where they require “large...

January 1989
Consumers losing

While the short term insurance industry may well congratulate itself for the healthy cash position it achieved in 1988, it should also look closely at how that position was achieved.
Healthy underwriting was one contributing factor, and...

January 1989
Milking taxpayers

The buy-back pension scheme, legislated in parliament in May 1988, could cost ratepayers millions. Since its inception, the scheme has caused much controversy amongst ratepayers and councillors alike. It operates in very much the same way as the...

January 1989
Sowing seeds

Agricultural insurer, Sentraboer, has announced some highly encouraging results in its 1988 year-end report. The company achieved a surplus of over R12m for the year ended June 30 1988 as compared with R6m for 1987. This meant that the solvency...

January 1989
Valued role

Banks and building societies traditionally spend a far greater proportion of their budgets on advertising than their competitors, the life assurance offices. Life companies instead tend to invest in human resources: their agents and broker...

January 1989
Being left out

Victims of AIDS, or Acquired Immune Deficiency Syndrome, are plagued by society too. They are treated as outcasts irrespective of how they have been infected by the virus. They face numerous, often insurmountable hurdles: they lose their health...

January 1989
Muted health rewards

Life assurance policies hinge on projections concerning the assured. For instance, his life span must be predicted and any abnormal risks he may present must also be considered.
Usually potential policyholders are classified into broad...

January 1989
Easy access

The sale of insurance by direct marketing has become an important facet of the industry. Many of the major insurers and brokers are involving themselves in mail order practices.
Cover via the post is currently available in several areas...

January 1989
Insurers quake

It somehow seems improbable that South Africa (SA) could experience a serious earthquake, but the San Andreas Fault in America forms part of the earthquake fault in SA. The line runs up from Cape Town to Durban.
All earthquakes that have...

January 1989
Justified or not?

Off-shore insurance companies, or captives, have existed worldwide since the early twentieth century. There are some rumblings both in the South African insurance industry and amongst members of the public that captive insurance companies have...

January 1989
Sticker them up!

“Unscrupulous tow-truck operators are ripping off motorists,” says Harry Pretorius, GM emergency road services of the Automobile Association (AA).
It is apparent that certain tow-truck operators are towing away vehicles from the scene of...

January 1989
Thumbs down for insurers

Latest figures from the SA Co-ordinating Consumer Council reveal that short term insurers have attracted a lot of complaints.
Says a spokesman for the Consumer Council, “Over the past seven months we had an average of 60 complaints per month...

January 1989
Strong competition

Lloyd’s has been somewhat in the spotlight lately, under fire from the local short term insurance industry. In fact, it seems local insurers are bitter over the amount of business going overseas. Says one, “I don’t think Lloyd’s is our friend....

January 1989
Warning to all

One of the more daunting aspects of computer hacking is the magnitude of the damage that can be inflicted on a system. The implications of computer fraud to a company are enormous. It could result in a loss of shareholders’ funds, the company’s...

January 1989
Test case over

The first test case between insurance brokers and liquidated AA Mutual Insurance Company’s (AAMI) creditors is over. The bid by Premier Milling to overturn the Supreme Court’s 1987 ruling that premiums held by Priceforbes Federale Volkskas (PFV)...

January 1989
Record income

Metropolitan Life has announced some highly pleasing results for the period ending September 30 1988. The company achieved a total income of R507m, constituting an increase of 29%.
This enabled earnings to be lifted by 26% to 36c a share....

January 1989
Working together

Trade unions have joined with government officials to investigate and develop suitable retirement provision for South African workers
After 19 gruelling months, the government finally accepted a recommendation by the Meiring Committee to set...