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April 1989
Kids Stuff

Being educated today doesn’t just take good brains, but an awful amount of money too.
The amounts that are involved can be quite staggering. The future doesn’t look rosy. For example, in 1978, a BSc degree at university cost R900 per year....

April 1989
Pedalling business

Hot off the press is a new product from First Bowring for owners of bicycles worth R 1 000 or more.
The initial launch will be to all the finishers of The Argus race. This is the 105km cycle race around the Cape peninsular held annually....

April 1989
No more, no less

One of the important principles of a contract of short-term insurance is that of indemnity. This applies to all except personal accident policies. Indemnity is a common law principle stipulating that a policyholder may not profit from a loss for...

April 1989
A step ahead

South Africa has been involved in the direct mail market for almost a decade now. In this time some costly mistakes have been made, but the exercise has also, in many ways, been highly rewarding. Today, direct marketing is an important facet of...

April 1989
Tough tackless

Towards the cud of last year, the authorities slapped on a surcharge of between 20%-60% on imported goods. Insurers and brokers conscientiously sent out various letters of warning that this could lead to underinsurance for many policyholders....

April 1989
Avoiding underinsurance

“Everyone in the insurance industry knows that the application of average probably causes more dissatisfaction than any other aspect of insurance,” comments Jac McLachlan, senior GM, Santam.
Unfortunately, if a client is 25% underinsured...

April 1989
Foreign connections

Southern Life is acquiring a 13% stake in Hansard Financial Trust Limited (Hansard) at a cost of £12 million through a “non-South African based company” - presumably because negotiators were is very sensitive about the SA connection. Hansard is a...

April 1989
Insurance claim upheld

The Free State Supreme Court confirmed February 9 1989 a rule nisi by which Santam Insurance was ordered to pay out a Polish immigrant under policies held by three men found to have been responsible for him becoming a quadriplegic.
Costs...

April 1989
Be careful

Some media reports give the impression that only Old Mutual came out tops in the recently released annual investment performance survey of life offices’ investment returns. But it depends which horse you are backing and what its best distance is...

April 1989
Keeping up the pace

Short term insurer Mutual and Federal (M&F) has announced very pleasing results for the six months to December31 1988. A huge 80% increase in taxed profits, amounting to nearly R47.5m, was reported. This was in line with excellent results...

April 1989
Help for the weary

Travel Assistance South Africa (TASA) has just launched a new insurance and assistance policy to help local travellers. It is backed by a 24 hour control centre and a computerised place name and assistance services search programme. This the most...

April 1989
Three key areas

The Council of Lloyd’s of London has approved the code of practice relating to the charging of syndicate expenses. The code of practice covers three key areas:
• the nature of an acceptable syndicate expense:
• the allocation of...

April 1989
Estates and financial planning

Financial planning deals primarily with the management of your money. This means that you must decide in advance what your short term, medium term and long term financial needs are and how you are going to provide for those needs. If you are...

April 1989
Big boost

Aggressive newcomer to the short term insurance industry, Auto & General (A&G), has posted a fine set of financial results with the 12 months to end December 1988 characterised by strong growth.
According to MD Stephen Klinkert the...

April 1989
Where’s the rip off?

The cost of health care has surged in recent times - a factor which is increasingly hitting our pay cheques. But at last it appears that something is being done. Growing concern has prompted government to look into the industry. Everything from...

April 1989
A lady with electricity

Hilary Gildenhuys is a young woman. Significant, because the list of achievements which follow would normally be the proud attributes of an ageing gentleman. At the age of 32, she has amassed a string of qualifications and held positions in the...

April 1989
Pleasing results

Group profits for Fedsure, the holding company of Fedlife and Fedgen, grew an impressive 55% for the year to December 1988. This reflects an increase in after-tax profit from R10m to R15,4m. Fedlife, which represents about 97% of the assets,...

April 1989
Good bye

Finance Minister Barend du Plessis has finally done it. In a single sentence of his March 15th Budget, he did away with the life assurance industry’s most disliked legislative requirement. Life offices are no longer obliged to invest large...

April 1989
Good and bad

A new basis of taxation of long-term assurers will apply with effect from years of assessment ending on or after April 1st 1989. The taxable income will be the difference between insurance income (as defined) and expenses (as defined). Moreover,...

April 1989
Boost for exports?

South African exports will receive a significant boost from the new Short-term Export Finance Guarantee which Credit Guarantee Insurance Corporation (CGIC) has just launched. CGIC is a credit insurer backed by a consortium of 24 insurers,...

April 1989
Sounds familiar

The American insurance industry “desperately needs to improve its image with the public,” says a prominent insurance industry attorney and a state insurance regulator.
“One almost assumes that the industry has a death wish,” adds one...

April 1989
Big jump

Commercial Union (CU), the country’s largest composite insurer, has announced an after-tax profit of R31,2m for 1988, a 109% increase on the previous year. The major contributor to this substantial increase is the good short term underwriting...

April 1989
Staff gain from disinvestment

Staff of Minel insurance Brokers seem happy about the recent disinvestment by the UK shareholder. The move follows anti-SA pressure from St Paul Companies mc, Minet UK’s new US shareholder. It was a year ago that the purchase by St Paul of Minet...

April 1989
Tails they win

Insurers have long criticised their customers for failing to insure adequately. Household contents, for instance, are often found to be underinsured - usually at a time when a claim is being presented. As a result, the claimed amount is adjusted...

April 1989
SA’s biggest

The latest estimate for the Sasol 3 fire puts the loss at R250m, still the biggest single insured loss in South African history. The insurance carries a R40m deductible. This means Sasol will pay the first R40m of the loss out of its own account...

April 1989
For whom the bell...

A bunch of locals recently went “toll-busting” at the Mooi River plaza on the N3 in Natal.
After attending a court case where others were being tried for a similar offence, the motorists went off to demonstrate their objection by driving...

April 1989
Local market needs

Capsco SA (Pty) Ltd was formally launched at a reception held at Swiss Re’s offices in Johannesburg on March 6 1989. Ron Ronchetti, Capsco’s MD explained that the new South African company was the latest addition to the Capsco group.
“This...

April 1989
Employers beware

While most of us appreciate some aspects of the serious threat Acquired Immune Deficiency Syndrome (AIDS) poses for society generally, few have pondered the problems that pension funds face.
John van der Linde, GM of Commercial of Union,...