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August 1994
In search of the best fit

Robert Vivian, Professor of lnsurance and Risk Management at Wits, answers another exam question in his regular series
Column C in the table on the next page indicates the accident frequency for the Gold Mines for the years indicated in...

August 1994
Death duty dis course

Company tax already accounts for approximately 20% of tax collected by Inland Revenue. “This figure is significantly high when compared to the average figure of 7,5% for the OECD countries,” notes Martin Sweet, AGM Southern Life, adding that it...

August 1994
Massive revaluations

Benefits paid by the long term assurance industry amounted to R27,8 billion in 1993, an increase of almost 27% over the payments in 1992, said Neal Chapman, chairman of the Life Offices’ Association (LOA).
“The primary focus of our industry...

August 1994
A matter of policy

The Insurance Institute of SA looks at the basics of short term insurance. The topic for this month: various forms of accident and liability insurance
Accident insurance
The advent of the Industrial Revolution created the need for many...

August 1994
Compulsory paper

Any person who has assets regardless of their value should ensure an estate plan covering their disposal in the event of death.
André Roothman, a legal adviser for Sanlam, explains that estate planning is “the arrangement, management,...

August 1994
We need specifications

Policy wordings not only need simplifying; their definitions need to be clearly understood too. But so complex have they become that few people really understand what cover they have bought. Here’s an example:
The company may at their own...

August 1994
Cost containment

In essence, the transfer of risk on break-bulk shipments purchased on Free on Board (FOB) or Cost and Freight (C&F) terms takes place when the goods effectively pass the ship’s rail; and there is generally sufficient documentary and other...

August 1994
Clubbed out

Important marine liability risks are to be subject to the UK’s new insurance premium tax. An exemption for marine, aviation and transport risks will not apply to several types of cover provided by the protection and indemnity clubs and other...

August 1994
Clean sheets

During November 1993 the Commissioner for Inland Revenue wrote a letter to all the administrators and/or trustees of medical benefit funds. He requested that the rules of the funds be amended with effect from 1st December 1993 as follows:
•...

August 1994
Public perception

Fedlife is ranked the fifth largest life assurer in terms of premium income, and sixth in terms of assets yet, as MD of the company, Morris Bernstein notes, “We are not as well-known as we should be, while there is uncertainty about the...

August 1994
Dangers on foreign shores

While South Africa’s re-acceptance into the international trade community has led to a rush of export activity, traders should be aware of the pitfalls that lie in the area of product liability insurances.
“Exporters who assess their...

August 1994
Getting your back up

Mercantile & General continues its monthly guide on underwriting considerations of certain medical risks
Also known as Marie-Strumpell disease, Ankylosing Spondylitis is an inflammatory disease predominantly affecting young males. In the...

August 1994
Camera, no action!

Take an event that seemingly has a good chance of happening and insurers will tell you they won’t insure it; take one that will rarely happen and they will fall over themselves to give you cover. This peculiar paradox — because the idea of...

August 1994
Check various factors

Few individual investors have sufficient time to analyse the stock market, nor do they have the capital required to build a portfolio of expensive blue chip shares. In these circumstances, a unit trust is the answer, and every sensible investor...

August 1994
That will do ‘nichely’

Life assurance companies catering to emerging niche markets are most likely to succeed in the next decade believes Ben Geldenhuys, chief executive of IGI Life.
“Insurance eliminates the risk associated with day-to-day living. However, it is...

August 1994
Thieves coded out

The message to all would-be cellular telephone thieves from MTN (Mobile Telephone Networks) chief executive John Beck is, “Why bother to steal a hand-set or SIM card when you will not be able to use it on the MTN network because of the Equipment...

August 1994
Back to normal

The recent spate of heavy fire losses could have devastated the insurance industry had prudent reserves not been set aside. Despite generous underwriting profits the last few years many companies noted that fire and natural catastrophes had been...