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July 1990
To be or not to be...

Here’s another interesting piece from Robert Vivian, Professor of insurance and risk management at Wits, in his monthly series on answering exam questions. The question, which is discussed below, comes from the April 1990 Insurance Institute...

July 1990
Treasure trove

The growth of the life industry is almost alarming, and one wonders if there is any money left anywhere else. If R61m total income per day seemed enormous in 1988, then last year’s figure of R76,6m a day - another R16m a day - can only be...

July 1990
By Peter Stephan, a senior legal analyst at Old Mutual

In the light of the new tax free- status of underwritten provident funds, I would like to review some of the tax and legal implications of provident funds compared to pension funds.
Both funds are initiated by employers primarily to provide...

July 1990
Foreign capacity

Standard General Insurance (StanGen) has written a record R19m life policy. Peter Dexter, life director, and Forbes Horncastle, short term director, of Cohn Cooper & Associates initially approached StanGen with an application for R2,5m cover...

July 1990
Asbestos free

RASCO, a fire protection business, has just released a new range of fire doors. The E-core system is based on a monolithic refractory core is asbestos free, and complies with modern environmental requirements.
Scientific development of this...

July 1990
Home comforts

The recent spate of rapes and killings committed in people’s homes has highlighted the need for adequate security on the domestic front. Elderly people, in particular, are most vulnerable and the South African Police (SAP) recommends that, where...

July 1990
Protecting assets

Any asset protection strategy, whether private or business, should take into account both the physical aspects of security and the insurance cover needed to protect against financial costs following a loss or damage to an asset. The insurance...

July 1990
So many

The SA Security Federation
1] Association of Security Engineers (ASSESS). Members of this informal association are manufacturers of security products like locks, locking devices, safes, vaults, strong-room doors and blast-resistant doors for...

July 1990
Rapidly rising crime rates

In the time that it takes you to read this article at least two thefts will have been committed somewhere in South Africa. Numbers have a way of attracting attention, and when it comes to security, they also illustrate the serious extent of crime...

July 1990
Asbestos setback

Insurers have suffered one of their most serious setbacks ever in the tide of litigation over asbestos-related claims against Owens-Illinois. A New Jersey judge has ruled that insurers had provided cover to the former asbestos manufacturer and...

July 1990
Saving hassle

Stories abound of people who take occupation of a new house which subsequently cracks, sinks or collapses. Fedgen’s new home defects insurance is designed to remove the risk of costly repairs following defective workmanship, materials and design...

July 1990
Where now?

Investors who elected to buy insurance counters towards the beginning of last year would have been pleased by their performance some 12 months later. According to stock brokers Mathison & Hollidge, the twelve- month period going back from...

July 1990
Demand factors

A basic function of the Johannesburg Stock Exchange (JSE) is to provide a market for the buyers and sellers of capital - the lifeblood of the economy. The market puts a price on this capital (more commonly referred to as shares) and facilitates...

July 1990
What to buy

Looking for a good price on a used Porsche? Try the basement parking at the Johannesburg Stock Exchange. Following a prolonged bull run since the fateful crash of October 1987 share prices have, over recent weeks, taken a tumble. The main factor...

July 1990
Turning points

There are three reasons for “insurance cycles”, or the ups and downs of insurance premiums.
1] Chance. A distinction must be made between pure chance, similar to a streak of good or bad luck in gambling, that cannot be explained, and...

July 1990
Complex claims

The need to display third-party insurance tokens on windscreens fell away in May 1989. There was little fanfare and the event passed almost unnoticed by the press. Another important aspect of the new phase of third-party insurance is that the...

July 1990
New faces

Following the recent appointment of Dr Roberto Grandi as MD of Standard General effective 1st Mau 1990, comes another top level change. Paolo Cavalieri has been appointed executive assistant to the MD. He officially assumed office on 1st June...

July 1990
Save by safe driving

Businesses running company car or car allowance schemes can reduce motor insurance costs by participating in ‘safe driving’ courses offered by the Automobile Association and other organisations. This has been the experience of PFV, the short term...

July 1990
Tobacco terror

Mercantile & General continues its monthly guide on underwriting considerations of certain medical risks.
How many of us, when nervous or tense, light up a cigarette and feel those wonderful calming effects without realising what we are...

July 1990
Sticky problem

Stamp duty on an agreement in respect of which no other duty is specifically provided was increased from R1 to R2 as from 1st April 1989. An amendment was passed to the Stamp Duties Act No. 77 of 1968.
For the purposes of this increased...

July 1990
Time table

The rules for compulsory third party insurance have undergone many changes the last few years. The most recent, in terms of the Multilateral Motor Vehicle Accidents Fund Act 1989, means that motorists are no longer required to display third party...

July 1990
Equal access for some

According to Swiss Re, in a Recent Edition of Experiodica, the problem of the European Community’s (EC) concept of its external business relations poses itself increasingly. One of the key questions regards the insurance industry; whether, or...

July 1990
New era

Commercial Union has launched a combination retirement programme which becomes self-financing after 10 years but provides income tax relief until retirement. The Dual Era retirement plan is a package consisting of a retirement annuity and an...

July 1990
Act passed

In terms of the Recognition of the Independence of Namibia Act 1990, South Africa ceases to have authority in the territory with effect from 21st March 1990. From this date any South African law applicable to Namibia will have no force.
...

July 1990
Inflation danger

Car price increases have outpaced inflation in recent years, with the result that unrealistic ‘book values’ and under-insurance have become commonplace. Since 1984, the price of the average car has more than tripled. This phenomenon, coupled with...

July 1990
Worthy risk?

Benefiting from the abolition of prescribed assets, Fedlife’s Fedshare retirement annuity plan promises above average investment returns. Prescribed asset requirements had long been a focus of intense criticism because they forced investors into...

July 1990
Listen well

The threat of liability for damage to hearing caused by noise pollution should be taken seriously. Explains Mike Alexander, a senior consultant of CRM, the risk management arm of PFV Insurance Brokers, “Case studies in both the United States and...

July 1990
Dodgy law

The fire protection business has more risks than just fire. According to Andrew Grieg, MD of Protection Projects, there’s nothing to stop inexperienced and underqualified people setting themselves up as “fire consultants.”
For example, if...

July 1990
Size is important

Following the provisional liquidation of its United Kingdom parent, the South African arm of NEG has been acquired by Mutual & Federal (M&F) in a deal worth R132m. With effect from June 13 1990, M&F acquired 7 2,9% of the issued share...

July 1990
Sales opportunities

Despite persistent limitations in tax law, retirement annuities (RAs) hold several new selling opportunities. These were outlined in a recent talk by Martin Sweet, senior manager legal services, Charter Life. He noted that, “The introduction and...

July 1990
Water pity

The huge cost of recalling the worldwide stock of Perrier water contaminated by minute traces of benzene is expected to reach about US$70m. Market sources say that Perrier does not have product guarantee and recall insurance and will have to bear...

July 1990
Rates defy gravity

A combination of diving rates and climbing costs translate into something of a bumpy flight for aviation insurers. The impact of these factors has been described by some industry sources as “disastrous”.
At least part of the present...