Topic 10: Importance of insurance for businesses

Question 1

Importance of insurance?

Answer 1

• Transfers the risk from the business insurer.
• Protects the business aginst dishonest employees
• Protects the business against theft/loss of stock and caused by natural disasters

Question 2

Insurable risks?

Answer 2

• Theft / Burglary / Money in transit.
• Fire & Natural Disasters
• Loss of assets, vehicles, equipment, buildings

Question 3

Uninsurable risks?

Answer 3

• Losses or damage incurred as a result of a war.
• Fluctuations in fashion and trends
• Losses or damage incurred due to illegal marketing activities.

Question 4

Compulsory insurance vs non-compulsory insurance?

Answer 4

Compulsory insurance
- Individuals/Businesses are legally obliged to take out insurance.

Non-compulsory insurance
- The insured has the option to insure against certain risks that may / may not occur

Question 5

UIF ?

Answer 5

• Established to assist employees with financial aid should they become unemployed.
• The employee contributes 1% of his/her salary
• The employer contributes an additional 1% of the employee’s salary

Question 6

UIF benifits unemployment?

Answer 6

• If the employer retrenches an employee.
• Cannot claim if resigned / suspended.
• Only availible to employees who contributed while employed

Question 7

TERS?

Answer 7

• All employees and employers can claim who are registered with the department of labour
• Applies to employers that cannot pay their workers during lockdown
• Also applies to employees who have been forced to take leave as a result

Question 8

Illness benifits?

Answer 8

• If an employee is unfit to work for more than 14 days.
• Employees may not claim if they refuse medical treatment.
• The employee must recive less than their normal wage while on sick leave

Question 9

Materinity benifits?

Answer 9

• Pregnant employees receive benefits for up to 4 consecutive months.
• In the event of a miscarriage, up to 6 weeks may be claimed.
• She must be reciving leaa than her usual wage

Question 10

Adoption benifits?

Answer 10

• Employees receive these benefits if they adopt a child under 2 years of age.
• Only one parent may claim
• He/she must be receiving less than their normal wage

Question 11

Dependants benifits?

Answer 11

• Dependents may apply if the breadwinner dies.
• The man/woman may claim whether he/she works or not.
• Dependent children under the age of 21 years are entitled to benefits if there is no surviving spouse or a life partner

Question 12

COIDA?

Answer 12

• Covers occupational diseases and injuries sustained by employees while performing their official duties.
• Levy paid to the Compensation Fund is the responsibility of the employer.
• No contributions from employee are required to be paid to the Compensation Fund.

Question 13

RAF?

Answer 13

• Insure road users against the negligence of other road users.
• Contributions to the RAF/RABS are collected through a levy placed on fuel.
• Victims and their families are compensated for loss of income / medical and related costs. The amount of the claim is limited by law.