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December 2002
Making sense

In a fascinating condemnation of the interpretation of insurance policy wordings, a New York court has unequivocally come out in favour of the view that the Twin Towers’ destruction was a single occurrence and not two...

December 2002
The Concorde crash

The following is a comment by a Continental Airlines’ pilot and puts a new perspective on the crash (thanks to Allan Hodgson for the quote):

We all know that the Concorde crashed because it hit a metal...

December 2002
Bearing down

The severe bear market since 2000 and record losses in 2001 have rein¬forced the cyclical upturn of the non-life insurance market, says Swiss Re. Globally, non-life insurance prices are rising. The price increases are...

December 2002
Lest we forget…..

2001 was a year that the international insurance industry will not soon forget. The industry experienced the largest loss it had ever seen from one event and the ripple effect has been enormous. Even though far away...

December 2002
Competitive move

After almost 85 years Santam has decided to establish a head office in Johannesburg, although the corporate head office will remain in Tyger Valley, Bellville.

Explains Santam’s chief executive, Dr Johan...

December 2002
Minor injury

Deneys Reitz on insurance case law: Makhathini v Road Accident Fund 2002

The appellant, in her capacity as the minor’s mother and guardian, instituted action against the Road Accident Fund following an...

December 2002
Turning the screws

The King Report on Corporate Governance 2002 was finally released in March. Also referred to as ‘King II’ the code moves beyond the largely financial focus of the King I Report, released in 1994, integrating it with...

December 2002
Deck hand

With an extraordinary contempt for the basic precepts of justice, a Superior court Judge, one Soussan G Bruguera, found that the words in an insurance policy mean something far detached from the ordinary day-to-day...

December 2002
Improving ethics

Ahead of the new advisory and intermediary legislation the Financial Planning Institute of South Africa (fpi) reports that its membership trebled in the last year to 7 400 members. The institute had extended...

December 2002
Short-sighted

Employees suffering work-related injuries need evaluating for their abilities, not their disabilities. And leaving them to claim disability benefit, instead of finding suitable alternative employment for them is...

December 2002
Power to the independents

Cape Town-based Louis Group has announced the creation of a new service company designed to help independent brokers meet the challenges of the new government regulations and consequent demands from underwriters....

December 2002
A way to go

Standard Bank Unit Trusts Limited recently introduced its new Standard Bank Euro Currency Fund of Funds. Head of unit trusts Anthony Katakuzinos says this fills a gap in the STANLIB range that meets investors’ needs....

December 2002
Low interest boost

Standard Bank Unit Trusts Limited recently added a Property Income Fund to its range of products. This fund targets listed property shares from the JSE’s new Real Estate Index and is marketed by STANLIB Wealth...

December 2002
Real bonds or not?

Inflation-linked bonds are an inflation hedge over the long-term and a good investment for investors requiring real returns. They also provide investors with an uncorrelated asset class and hence good diversification...

December 2002
Most local classes

All players in the South African insurance industry have now endorsed a system of standard wording on contracts dealing with most local classes of non-life reinsurance business.
Standard wording was...

December 2002
Best practice

The South African Reinsurance Offices Association (SAROA) was formed in the 1960s. It represents locally registered reinsurance companies in South Africa.

It facilitates communication between reinsurers...

December 2002
Uncomfortable decisions

The global economy is set for an upturn in 2003, but the driver of improved performance is unlikely to be the US as is currently advocated by most global market investors. This is the view of Phillip Williams of...

December 2002
More pain ahead, but value can be found

The current interest rate levels, with still the possibility of another hike in the fourth quarter of the year, means that the best investment advice to give anyone is that they should first pay their debts off before looking to make money in the...

December 2002
Four Plus savings incentive

‘Four Plus’ is a new range of unit trusts from Old Mutual, which has been designed specifically for the ‘mass market’. It offers four options with a minimum contribution of as little as R150 a month.

MD...

December 2002
Helping UK departure

New Africa Capital (NAC), the holding company for the Metropolitan businesses, says it expects to transfer the insurance business of CU Life into Metropolitan Life by year end, once all the regulatory approvals,...

December 2002
Exposure control

There is an increasing risk of contracting HIV/AIDS in this country, given the shocking spread of the disease. So serious has it become that some insurers have decided to include a ‘post-exposure Prophylaxis’ (PEP)...

December 2002
Quite the reverse

With the gradual relaxation of foreign exchange regulations over the last five years, more and more South Africans have diversified their portfolios to include foreign investments. However, since the beginning of 2002...

December 2002
All your eggs….

The US trade gap continues to widen, and reached a record US$38,5 billion in August this year. This figure is the difference between the cost of imports amounting to $120,3 billion, and the income received in respect...

December 2002
Few aware of the Act……..

One of the challenges facing government and the private sector under the new Promotion of Access to Information Act will be the delicate balance between protecting privacy without obstructing access to information,...

December 2002
Living in desperate times

So serious is the shortage of blood donors that the present age limit of 69 years old has been removed. “In future there will now be no upper age limit,” advises the SA National Blood Service, but adds that donors...

December 2002
Worse case

The life ombudsman, Judge Jan Steyn, says there has been a 25% increase in the number of complaints handled by his office between the years 2000 and 2001. And his latest collated statistics — for the first six months...

December 2002
Home truths

I do not see how estate agents can say that a rise in interest rates has no effect on the property sector. True, they are ever keen to talk up the market — since that is where their commissions lie — but to take such...

December 2002
Workplace solutions

Metropolitan Employee Benefits has recently introduced  a comprehensive HIV/AIDS workplace solution, which manages the health of infected employees, and further implements preventative strategies to reduce new...

December 2002
Unplanned manoeuvre

The investigation commission into the crash of the Sukhoi-SU-27 jet fighter at an airshow recently has issued a report naming the persons responsible. The pilots performed an unplanned manoeuvre and the local...

December 2002
Rewarding loyalty

Momentum Investo has enhanced its range of offshore investment opportunities to include Maximiser. This is a 10-year pure endowment policy positioned on the Investo Foreign Holding Capacity and the client’s R750,000...

December 2002
Optimal draft

The SA Insurance Association says that the Committee appointed for drafting an optimal Agency Agreement has now met three times and that “all meetings were well attended by broker representatives.” Reporting in its...

December 2002
Prosecutions

According to the FSB Annual Report for 2002, there were possible fraudulent transactions of about R22 million involving a transfer of assets between funds and third parties. This matter was handed over for prosecution...

December 2002
One port of call?

The Financial Services Board (FSB) says it is investigating the means by which it can establish ‘one port of call’ for all complaints against financial services. This will follow the introduction of yet another...

December 2002
Going into dollars

Momentum has expanded its range of investment opportunities with the introduction of the Personal Offshore Portfolio Retirement Annuity. It enables individuals to invest their maximum permissible offshore allowance of...

December 2002
Damage control

Getting close to retirement? Then this book, Damage Control your Retirement Income, may just be what you need. In A4 format soft cover, this 136-page hands-on workbook will guide you through simple steps towards...

December 2002
Which entity?

When starting up a business, an important decision to make is determining the most suitable structure for the entrepreneur’s needs and requirements. There are various approaches to consider, each of which has their...

December 2002
Hardship hope

Few people will claim delight in the scourge of higher interest rates, petrol or food prices. Petrol is now over R4/litre; and consider that a bond of R300 000, for example, now costs almost R1 000 more now than it...

December 2002
Check for terrorism cover

Travel Insurance Consultants (TIC) has acquired the underwriting insurance interests of Europ Assistance from Santam. Holdings in Europ Assistance Worldwide Services (SA) Limited.
In acquiring the book and...

December 2002
Who sues who?

In the world of professional sport and the rise of on-field sports violence – can insurance cover be used to promote good sportsmanship?

This is one of the issues that was dealt with by attorney Shane...

December 2002
Harbour case

Deneys Reitz on insurance case law: MV Stella Tingas 2002

A collision occurred between two ships in the Durban harbour, the Stella Tingas and the MV Atlantica (the first defendant). When the collision...

December 2002
Taking care

Care Assist, specialising in telephonic assistance and advice services, has been appointed as one of the suppliers to Liberty Life’s new advice line called Freestyle.

Liberty says the objective of the...

December 2002
The fifth pillar

Risk management is becoming an essential aspect of corporate governance. No longer involving safety, health or insurance alone, but rather embracing the corporate business in its entirety. This message emerged from...

December 2002
Clean up act

Albeit somewhat rambling and poorly drafted it is clear the proposed Tow Truck Bill — that may become law during 2003 — will seek to introduce a comprehensive set of regulations and penalties to clean up the roadside...

December 2002
Crash vultures

Any motor accident, even the most minor, can leave you dazed and confused. But it is the time when the road vultures fly in, and the time when you really need to think with the utmost clarity. Even with a bleeding...

December 2002
Phone care

Care Assist and Europ Assistance have announced their merger with effect from 1st October. The two companies will consolidate their call centre infrastructure, and Europ Assistance staff will move across to Care...

December 2002
Gotcha!

The South African Insurance Institute (SAIA), the Life Offices’ Association (LOA) and the South African Financial Services Intermediaries Association (SAFSIA) have collaborated to establish the INSURANCE FRAUDLINE,...