WHILE THE Intermediaries Guarantee Fund (IGF) has a valuable role to play in the insurance industry - you don't get something for nothing.
If you are a forwarder involved in the collection of premiums from clients you will have to insure yourself with the IGF for 30% of the annual amount you collect - and this will cost you.
According to information released to FTW by the SA Insurance Association (SAIA) the minimum guarantee is R10 000. Premium for that is +/- R340 a year.
The maximum guarantee is R50-million. Premium here is worked out at 0,25% - or R125 000.
There is a variable premium for the amounts between these two extremes.
From the point-of-view of proof of estimate, you must submit a current audited statement to the SAIA for any amounts over R1-m.
If your books are at current net liability - the SAIA will also have to look at your financial statements for the year.
If there is not enough in your accounts, you must have collateral securities - bank guarantee; cede over loans or insurance; or fixed property.
