 How
difficult is it to get this cover?
It’s as easy as 1-2-3.
(1). Complete the enclosed application form and fax it to us
at (021)434 5836 or post it to
Pension Trustee Peace of Mind Policy, P O Box 718, Cape Town
8000
(2). We will then fax to you annual premium due.
(3). Have the pension fund pay this to the
underwriters and you are on cover.
Are the
trustees obliged to accept the quote?
No, you are not under any
obligation to accept it. However, remember that you should protect your personal liability
as well as that of the fund.
What if the
pension fund already has an indemnity policy?
You can either cancel the
fund’s policy once it is replaced by the Pension Trustee Peace of Mind policy, or let
it run to renewal. (If the fund has no such policy but there is some cover under the
Employer’s indemnity policy, one needs to check what protection this gives trustees
and the fund.)
How is the Sum
Insured determined?
There has been considerable
discussion about the most appropriate formula, but we use, as a minimum basis, the widely
accepted approach of Twice the Honesty Index (i.e. the greater of 12% of the fund assets
or 8 times the monthly contribution), subject to a minimum of R500,000. This is, of
course, only a guideline and you can select a higher figure for the Sum Insured. You may
feel that a chosen amount (a minimum of the previously mentioned level) is an appropriate
maximum for an individual loss but want to insure against double this amount (i.e. two
such claims in the year) – in this instance, it will be cheaper to insure for this
chosen level plus one reinstatement if there is a claim, rather than for double the chosen
level as the Sum Insured.
Does the policy
premium include VAT?
There is no VAT refund in the
premium.
Who are the
underwriters?
The policy is underwritten by the Admiral
Liability Acceptances (Pty) Limited on behalf of underwriters at Lloyd’s. The former
company, together with the Admiral Professional Underwriting Agency (Pty) Limited
(established originally as a vehicle for the Accountants’ and Engineers’
professional indemnity insurance schemes), constitute the Admiral Underwriting Group.
Today, after 22 years of trading, the Admiral enjoys a pre-eminent position in the
Professional Indemnity market handling about 60% of this business and is steadily growing
its presence in other chosen niche classes. Total Gross Written Premium of the group
exceeds R100 million.
What Fund Asset
Value and Monthly Contribution figures are used?
Use the most recent figures (from the last Actuarial or
Investment Review or other reports). Remember, while this is really a guide, you do not
want to be under-insured.
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