FREQUENTLY ASKED QUESTIONS
Q: What is the minimum premium amount per year?
A: The minimum premium required is N$12,000.00 (ex. VAT) per annum.
Q: Do I need to pay the full premium at once?
A: No, you can pay via debit order on a monthly, quarterly, bi-annual or ad hoc basis in the 12 month period.
Q: Do I need to purchase a premium every year?
A: No, you determine your own insurance structure. Premiums can be purchased as additional cover when required.
Q: Why do you need so many documents before the policy can be opened?
In order to appropriately assess your risks and risk transfer needs, we need to understand and assess your business.
Q: What charges are levied on my Corporate Guarantee policy?
A: Law also requires us to pay over 1% of the value of the policy to NAMFISA as a regulatory fee. This amount is separate to your administration fee.
Furthermore, there is a 1% Stamp Duty levy, with a maximum charge of N$ 250, which is applicable on each new premium bought at Corporate Guarantee.
Furthermore, there is a 1% Stamp Duty levy, with a maximum charge of N$ 250, which is applicable on each new premium bought at Corporate Guarantee.
Q: When is the administration fee deducted from my policy?
A: Corporate Guarantee charges an up-front administration fee based on your unique risk profile and risks underwritten. This means that once the policy has been created, the first charge to be levied and deducted is your admin fee. The admin fee is calculated on the VAT exclusive amount of the premium bought.
Q: Is the ART insurance policy tax deductible?
A: As a business or individual trading, the amount you are able to deduct is equal to the size of the premium bought, subject to having an insurable risk equal to or greater in value than the balance of your Experience Account*. This should be confirmed with your Financial Advisor.
Q: Is the policy Vatable?
A: All Corporate Guarantee policies are subject to VAT. The only VAT exempt policy is the Credit Guarantee policy. In case of a claim, downward endorsement, termination or cancellation, the VAT will be paid out on top of the amount.
Q: Can the money in my fund become taxable again in future?
A: Yes, if you claim, downward endorse, cancel or terminate your policy the funds paid out will be seen as income and must be declared as such. As a result, you will be liable for taxation on those funds.
Q: What is an Experience Balance and how do I see what the return on my Experience Account is?
A: An Experience Balance is the cash payout value of all premiums bought less admin fees and levies. This is your risk management fund and remains accessible to manage your risks.
There is a No Claims Bonus (NCB)* section at the bottom of the Experience Account statement which shows the notional interest earned to date. Please remember that the interest is capitalized at the end of the 12-month insurance period.
There is a No Claims Bonus (NCB)* section at the bottom of the Experience Account statement which shows the notional interest earned to date. Please remember that the interest is capitalized at the end of the 12-month insurance period.
Q: When do I receive an Invoice for the payments made into my Experience Account?
A: As soon as we receive payment i.e., as soon as the inward payment appears on our bank, we issue an invoice for the monies received. Please note that the actual policy document serves as proof that you have made provision for an insurance expense.
Q: How does the No Claims Bonus (NCB) work?
A: Corporate Guarantee rewards you for good risk management by increasing your policy cash out value by means of a No Claims Bonus calculated on the balance of your experience account. If you do make a claim, you will still earn an NCB albeit on a pro-rata basis.
Q: What statements will I receive and how do I make sense of them?
A: 1. The Experience Account statement reflects the balance in your ART fund.
2. Should the policy be bought and paid over a 12-month period the Debtor Account Statement reflects the premium due on your policy.
2. Should the policy be bought and paid over a 12-month period the Debtor Account Statement reflects the premium due on your policy.
Q: Do I receive a Tax certificate at the end of the tax year?
A: Corporate Guarantee issues tax certificates for the Income Protection Policy. For all other polices, please use the policy document (policy contract and schedule) as proof of purchase of insurance.
Q: Can I cede a beneficiary on my policy?
A: Yes, all you need to do is complete and sign a Nomination of Beneficiary form and submit it to Corporate Guarantee. Upon your death, the beneficiary will receive the positive amount of the experience account minus any loans made against it. This means the policy will not fall within the deceased estate. (Note: Only applicable to individual policy holders. Closed Corporations and Limited Companies are not eligible for this benefit.)
Q: Can I become an agent for Corporate Guarantee? If so, how do I become an agent?
A: Becoming a short-term insurance agent involves registering with the Namibia Financial Institutions Supervisory Authority (NAMFISA) and entering into an agreement with Corporate Guarantee. Please contact our offices at +264 83 331 3032 or make use of the contact us section for more information and assistance in registering as an agent.
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