Phone: +27 11 726 5381
  • Document Downloads

    Bank Guarantee Forms

    Bank related documents for you to use in conjunction with IGF.

  • About IGF

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      About IGF

      IGF is a facility set up by the short-term insurance industry.

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      Banking Details

      IGF, Standard Bank, Parktown (000 355), 401 936 414

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      Fee increase

      Please notice that from 01/01/2009 our application fee has been increased from R300.00 to R350.00.

  • Regulation 4, Section 45 of the Short Term Insurance Act, 1998

    4.1

    (1) A short-term insurer may, subject to subregulation (2), in writing authorize an independent intermediary to receive, hold or in any other manner deal with premiums payable to it under short-term policies.

    (2) A person shall not be authorized, as contemplated in subregulation (1) unless that person has provided security, to the extent and in accordance with the requirements of this Part, in respect of his or her obligation in terms of Regulation (4.3) by means of:

    (a) a guarantee policy issued by a short-term insurer registered to do so in accordance with a guarantee facility created by short-term insurers generally for the purposes of providing such security; or

    (b) a contract which, but for the fact that the undertaking concerned is given by a bank, would be a guarantee policy, and under which policy benefits are to be provided in the event of the failure of that person to meet those obligations.

  • News

    Please note that current Intermediaries Guarantee Facility Limited guarantee holders with year ends up to and including 30 September 2018, will renew their guarantees as per normal. A full deposit premium is payable based on last year’s premiums paid. On cancellation of these guarantees at 31 March 2018, a premium refund will be made where applicable.

    Intermediaries Guarantee Facility Limited guarantee holders with years ends after 30 September 2018, will be extended, on the same terms and conditions and subject to certain conditions, on a pro – rata basis to 31 March 2019, on which date they will be cancelled.  

    The conditions for the extension of current guarantees with year ends after 30 September 2018 are as follows:

     

    • The payment of a pro-rata premium based on the previous years full premium, plus an application fee, payable by a specified date – amounts and date payable by, to be advised to respective intermediaries by e-mail.
    • The provision of up to date management accounts, signed by at least one director.
    • If there is a 10% or greater increase in the guarantee amount required a Document six Form must be completed, signed off by the auditor and submitted to Intermediaries Guarantee Facility Limited. The pro-rata premium will be adjusted accordingly.
    • Any cancellation of guarantees during the extension period will not be refunded.

    The position with regard to bank guarantees and collateral security, previously provided to Intermediaries Guarantee Facility Limited, during the prescription period will be advised shortly. By law there is a three year prescription period for all guarantees and collateral security where provided.

  • Action

    Insurers

    Each insurer must individually and specifically authorize in writing each of his intermediaries, whom he empowers to collect premiums on his behalf.
    The insurer must ensure that the authorized intermediary has a current guarantee issued in terms of Regulation 4, Section 45 of the Short Term Insurance Act, of 1998.

    Intermediaries

    Intermediaries who at present receive premiums on behalf of insurers must insist that they are specifically authorized in writing by those insurers.
    Intermediaries must be in possession of a guarantee that complies with Regulation 4, Section 45 of the Short Term Insurance Act, of 1998 for an amount equal to 30% of the net premiums received by them in their last financial year (based on a minimum guarantee of R100 000 and a maximum guarantee of R80 000 000 - as at 01 April 2010).
    If the intermediary has a collecting agency or a third party receiving premiums on their behalf for insurers, they should ensure that the agency or third party has a guarantee in terms of Regulation 4, Section 45 of the Short Term Insurance Act, of 1998.
    Intermediaries are deemed to “receive premiums” where the premium passes through a bank account controlled by the intermediary.
    Where the intermediary merely collects cheques issued in favor of the insurer from the client and delivers to the insurer, no authorization or guarantee is required.

  • FAQ

    1. What is IGF? The Intermediaries Guarantee Facility (IGF) is a facility set up by the short-term Insurance Industry generally for the purposes of providing security in terms of Section 45 of the Short Term Insurance Act read together with regulation 4 thereto.
    2. Why do we need to have an IGF guarantee? A short-term insurer may not authorise a person in writing to act as an independent intermediary, to receive, hold or in any other manner deal with premiums payable to it under short term policies, unless that person has provided security in terms of the Regulations Part 4 and Section 45 of the Short Term Insurance Act,1998.
    3. Is this a new requirement, who decided we need this guarantee? No, the Act came into effect in 1998.
    4. How do we go about getting this guarantee? All information and application forms are on the website. If you require any further assistance please contact IGF.
    5. At what rate does the guarantee premium get calculated? The guarantee premium is calculated on a sliding scale. A sample calculation is available on the website under Application documents.
    6. Can the premium be paid on a monthly basis? No, it must be paid annually on renewal or application.
    7. What will happen if we do not apply for the guarantee and who monitors this for compliance? The FSB monitors compliance and if you do not have a guarantee in place, you could be fined.
    8. When does the renewal dated start and/or guarantee expire? On your financial year end.
    9. How did you get to the collateral amount (being requested)? The underwriting rules are on the website under IGF Application.
    10. Do we have to complete all the forms every year? Yes.
    11. Why do we have to pay a deposit premium and why is it the same as previous year? A deposit premium is paid to extend the previous guarantee. This is based on the previous year until we get the new guarantee amount.
    12. Why does an Auditor / Accounting Officer need to apply for an extension? The auditor / accounting office will know when the financial statements will be available, and should therefore apply for the extension.
    13. How does the guarantee work, who will pay the claims? The guarantee protects the insurer and IGF will pay out the claim for the guarantee in place, only if all documents have been submitted and premiums are up to date.
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    IGF

    Intermediaries Guarantee Facility is a facility set up by the short-term insurance industry generally for the purposes of providing security in terms of Section 45 of the Short Term Insurance Act read together with regulation 4 thereto.

    A short-term insurer may not authorise a person in writing to act as an independent intermediary, to receive, hold or in any other manner deal with premiums payable to it under short term policies unless that person has provided security in terms of the Regulations Part 4 and Section 45 of the Short Term Insurance Act 1998.

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    IGF

    Intermediaries Guarantee Facility Limited

    The legislative requirement for a credit intermediary to hold a guarantee is no longer applicable from 28 September 2018. However the Prudential Authority and the Financial Sector Conduct Authority has authorised Intermediaries Guarantee Facility Limited to operate for an extended period of six months to 31 March 2019. All Intermediaries Guarantee Facility Limited guarantees will be cancelled on this date with no run-off. A prescription period of three years will follow. The reason for the six month extended period of operations is to facilitate an orderly transition from the previous legislated requirements for premium collection to a position where the market takes responsibility for managing its credit risk.

    News

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      Withdrawal of IGF’s insurance licence with effect from 24 August 2020

      Following discussions between IGF, the Prudential Authority (PA) and the Financial Sector Conduct Authority during the course of this year, the Authorities have withdrawn IGF’s (non-life) insurance licence in terms of section 29(1)(b)(iii) of the Insurance Act 2017, read section 122 of the Financial Sector Regulation Act 2017, with effect from 24 August 2020, instead of converting IGF's licence in terms of the provisions of the Insurance Act. The withdrawal of IGF’s insurance licence does not affect the prescription period outlined above.

      The conditions that attach to the withdrawal of IGF's insurance licence include:

      • IGF's Board takes responsibility for the implementation and management of a relevant claims handling process, in respect of any claims notified during the prescription period. To this end a Claims Board Committee has been constituted which will operate in terms of IGF Board-approved Terms of Reference.
      • IGF submits to the PA a bi-annual report confirming any claims notified during the reporting period, the status of those claims at the end of the reporting period and the status of the IGF assets at the end of the period. The first such report is due on 31 January 2021, for the six-month period ending 31 December 2020.
      • IGF must review all company documentation to remove the word “insurance" or any derivative thereof so as not to give the impression to the general public that IGF is an operational non-life insurer, and communicate all changes made in this regard to the PA by 24 November 2020.

      Process for the return of collateral security

      The process of returning collateral security held by IGF is under way and progressing. IGF aims to have returned all collateral security by the time liability under the last guarantees prescribes on 31 March 2022, and the company can be finally wound-up.

      The process encompasses:

      • Returning old collateral security that was required to issue IGF guarantees in the past, which guarantees are not subject to the three-year prescription period ending 31 March 2022, i.e. liability for claims under the relevant guarantee has already prescribed.
      • Returning current collateral security that was required to issue IGF guarantees in the past, which guarantees are still subject to the 3-year prescription period ending 31 March 2022, BUT where the necessary indemnifications of IGF have been received from the insurers and the relevant intermediary concerned, as well as the requisite letter of confirmation from the intermediary’s auditor confirming that there are no outstanding premiums due to the insurer/s up to and including 31 March 2019.

      We will keep IGF stakeholders informed of any further developments.

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      COVID-19

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      About

      IGF was set up by the short-term insurance industry generally for the purposes of providing security...

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      FAQ

      Answers to most popular questions that we get asked.

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      Fee increase

      Please notice that from 01/01/2009 our application fee has been increased from R300.00 to R350.00.

      more info
  • Contact us

    Address

    Ground Floor ,Willowbrook House, Constantia Office Park, C/O 14th Avenue & Hendrik Potgieter Street, Weltevreden Park

    Contact Details

    Telephone: +27 11 726 5381
    Fax: 086 647 2276
    Email: info(at)saia(dot)co(dot)za

    Directions

    Information: Our offices are located in the Constantia Office Park in Johannesburg.
    GPS Co-ordinates: -26.14735, 27.92511 View on google map