• Sharebar
November 1994
Typical cover

The Insurance Institute of SA looks at the basics of short term insurance. The topic for this month: Multi-peril policies
Many of types of short term insurance are required by the same individual or business. Anyone who owns and occupies a...

November 1994
No flash in the pan

Most thunderclouds are negatively charged at the base and positively charged at the top. A ‘chimney’ or ‘cell, of hot air rises through the day and may reach an altitude of about 8 000m. The rising cell causes extreme turbulence. As the water...

November 1994
Through a glass darkly....

Graham Fox of Quotemaster warns of a little-known restriction in the Multimark II wording as relating to windows.
There is a restriction on the policy wording for glass greater than 6mm or 6,5mm thick. The wording states:
Unless...

November 1994
Rooting poser

Lightning is often blamed by the layman as the cause of fire losses in thatched properties. It certainly is a threat and is almost always the source of an insurance claim in ‘lightning prone areas’ such as the Highveld. But the presence of...

November 1994
Safety savings

Insurance of thatched dwellings has always presented a problem because of the high risk of fire. In the accompanying story we show the sorts of premiums owners of thatched properties are likely to pay as compared to owners of homes of standard...

November 1994
Cost-a-packet

Are you confused about the various parcel rates for overseas mail? Have you been given conflicting rules or guidance about which method to use? The reason is because few post office clerks understand what’s going on. Enquiries of several post...

November 1994
Avoiding average

The objective of insurance is to place a company in the same economic position in which it was before a loss occurs. If a factory building suffers storm damage, which is insured, then the insurance company must repair the building in full. But...

November 1994
Resolving records

From the beginning of this year it became a requirement for life offices to publish an actuarial valuation in their financial statements. Paul Truyens for the Actuarial Society of SA (ASSA) says that disclosure of separate capital adequacy...

November 1994
Varying rules

In terms of the Income Tax Act the capital element of any voluntary purchase annuity is exempt from tax [See note 1]. But there are certain problem areas if the original terms and conditions of the annuity are later varied.
Notes Heiko...

November 1994
Social upliftment essential

When asked about the escalating crime rate in South Africa, Vusi Sithole, chief executive of Afgen, says, “I believe that insurance premiums, particularly motor, are now about as high as the market can bear. Further increases in premiums will...

November 1994
Hefty increases

For our survey on motor insurance premiums this month we use Quotemaster’s rates for a Mazda 323 130 Hatch valued new at R39 797 and a BMW 5201 (M50) valued new at R150 500. The retail prices — for the luxury model — has, for a change, moved...

November 1994
Planner’s ploy

Following the previous month’s article on tax strategy we now consider some of the elements that will enable you to recognise whether a pegging operation would be a viable proposition for your client.
1] Compare the costs of the scheme with...

November 1994
Spreading costs

A regular column explaining some of the basics of life assurance and pensions, with information from the Insurance Institute of SA. This month’s topic: level premium payments
Where short-term insurance is concerned, for example fire...

November 1994
Value for money

Lloyd’s of London has published guidelines for corporate capital participation in the insurance market in 1995. These stem from corporate capital proposals received in response to the consultative section of the Value Group document, Value at...

November 1994
This case is really killing me

Civilised society often forgets how much it owes to the rule-of-law. The single most important law is that simple command, ‘thou shalt not murder’ (Exodus 20v13). In essence, no-one may by a pre-meditated and deliberate act, unlawfully, kill...

November 1994
Life and short of it

According to Swiss Re’s World Insurance 1992 Survey, South Africa ranks pretty low in world terms, except for one strange phenomenon. SA gets first for distribution of total business. In terms of premium volume it has the highest share of life...

November 1994
Losing cover?

Such has been the dramatic and frightening increase in the levels of theft and hijack that insurance companies are considering the exclusion of cover from their comprehensive motor policies.
Ernie Saunders, executive manager domestic motor...