Page 5 - Reeftankers - Annexure A Minutes

REEF TANKERS (Pty) Ltd 21 JULY 2017

8. INSURANCE

8.1 Level of Cover and Rates

Details of the levels and cover and rates were noted as follows:

All % of
Description
Members Salary
Group Life: (Multiple of Salary) 3 0.913%
Continuation Option to age: 65
Continuation during disability: Yes
Increased cover during disability: Yes
Normal Retirement Age: 65
Disability Income Benefit: 75% Flat 0.464%
Waiting Period: 3 months
Escalation: (Lesser of CPI &) 7.5%
Employer Waiver: 12.01%
Conversion Option: Yes
Normal Retirement: 65
Dread Disease Cover (Multiple Of Salary) 1 0.228%
Reinstatement Option Yes
Reinstatement Period 1 month
Normal Retirement Age 65
Funeral Benefit: (Scale) R15 000 0.035%
Total 1.640%

The Manco noted that the cover was due for review as at 1 June 2018. It was further

noted that a quotation had been obtained to increase the funeral cover from a R 15,000

scale of benefits to a R 30,000 scale of benefits i.e. the overall rate would increase to Carried
1.696% should the change be implemented. No decision was made in respect of this Forward
increase.

8.2 Medical requirements

The Manco was informed that a Free Cover Limit (FCL) or non-medical limit was a level of
cover (in Rands) as determined by the insurer being the maximum benefit that the insurer

would automatically underwrite without requiring further evidence of good health by the

member. The insurer would therefore automatically cover members for benefits up to the
FCL. Any member who had cover in excess of the FCL would have provide the insurer with
medical underwriting requirements and be accepted by the insurer either at the current or

loaded premium rates in order to be covered for their full potential benefit. The Free

Cover limits were noted as follows:

Benefit Free Cover Limit

Group life R 3,630,000
Disability Income Benefit R 58 000
Dread Disease R1,750,000

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