Regulatory Alerts2018-04-01
Circular 10: Increase of Maximum Insurance Cover Amount for Friendly Societies
The Registrar of Friendly Societies issued Circular 10 to implement an amendment to the Insurance Act that raises the maximum insurance cover limit for members and their dependants from R600 to R1,000. Friendly societies must consult their appointed valuator prior to amending their governing rules to reflect this increased coverage threshold. Each society is required to distribute the circular to its auditor and promptly return the signed acknowledgement of receipt to the Registrar.
Financial Institutions Office Private Bag X238 PRETORIA, 0001 13 February 1978
Circular F.S. 10 (To all friendly societies)
INCREASE OF MAXIMUM AMOUNT FOR WHICH FRIENDLY SOCIETIES MAY PROVIDE INSURANCE COVER
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The attention of friendly societies is drawn to section 1(e) of the Financial Institutions Amendment Act, 1976 (Act 101 of 1976), published in Government Gazette No. 5217 of 23 July 1976.
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The abovementioned section amends paragraph (a) of the definition of "insurance business" in section 1(1) of the Insurance Act, No. 27 of 1943, by increasing the maximum amount for which a friendly society may provide insurance cover to a member or to the member's husband, wife, widow, widower, child or other relative or dependant from R600 to R1 000 (exclusive of bonuses).
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Before a society amends its rules to increase the maximum amount of the insurance cover which it provides, its valuator should be consulted in the matter.
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A copy of this circular is enclosed for the society's auditor. Please hand it to him and return as early as possible the attached acknowledgement of receipt, duly signed.
[Signature] REGISTRAR OF FRIENDLY SOCIETIES /MV