Frequently Asked Questions
Centenary Special Bonus
Why is AVBOB declaring a centenary special bonus?
Since AVBOB, as a Mutual Assurance Society, is 100 years old this year and has no external shareholders, we can share our profits with our policyholders. We do this by declaring special bonuses on policies, which include enhanced member benefits such as the AVBOB Reward Account and FREE funeral benefits*.
* Terms and conditions apply.
* Terms and conditions apply.
How does the 2018 centenary special bonus, linked to my policy, work?
This centenary special bonus applies to all qualifying policies that are in force on 30 June 2018 and will be added to an AVBOB Reward Account (ARA) for each risk policy (all qualifying life and funeral policies excluding savings plans and saving plan benefits) on 1 September 2018. The money in the account may, on request of the member (policyholder) be withdrawn on the policy anniversary, after the main insured person turns 65 years AND the policy has been in force for 10 years. Members (policyholders) that are eligible for payment on 1 September 2018, will be able to withdraw the money on the policy anniversary following the bonus allocation date of 1 September 2018.
Savings plan policies and savings plan rider benefits will receive a bonus of 12% of the balance in the investment account as at 30 June 2018. For savings plan policies this centenary special bonus will be added to the balance in the investment account when the policy matures. However, for savings plan rider benefits, this centenary special bonus will be added to the balance in the investment account when the main insured person turns 65 years and can be withdrawn on request by the policyholder.
Savings plan policies and savings plan rider benefits will receive a bonus of 12% of the balance in the investment account as at 30 June 2018. For savings plan policies this centenary special bonus will be added to the balance in the investment account when the policy matures. However, for savings plan rider benefits, this centenary special bonus will be added to the balance in the investment account when the main insured person turns 65 years and can be withdrawn on request by the policyholder.
Can I receive the centenary special bonus as a cash amount, as I need it now and not when I die? There is enough money available for the funeral.
In summary, all three the following events should have taken place, before the policyholder will be eligible to withdraw the money from the AVBOB Reward Account (ARA):
Example 1: If the main insured person is already 65 on 1 September 2018 and the policy started on 1 August 2000 (i.e. more than 10 years ago), the ARA will become payable on 1 August 2019 (i.e. the first policy anniversary after 1 September 2018).
Example 2: If the main insured turns 65 after 1 September 2018 and the policy is at least 10 years in force, the AVBOB Reward Account will become payable on the next policy anniversary date. In other words, if the main insured person turns 65 on 15 December 2019, and the policy commenced on 1 July 2008, the ARA will become payable on 1 July 2020, being the first policy anniversary date after age 65.
Example 3: If the main insured person is 65 at 1 September 2018 or would turn 65 after 1 September 2018 and the policy is not yet 10 years in force, the projected date that the ARA will become payable will be the next policy anniversary date, after the policy has been in force for 10 years. In other words, if the policy is only 5 years old when the main insured reaches 65, the ARA will become payable on the first policy anniversary after the main insured has reached age 70.
- on or after the first policy anniversary;
- after the main insured person reaches age 65;
- and the policy has been in force for 10 years.
Example 1: If the main insured person is already 65 on 1 September 2018 and the policy started on 1 August 2000 (i.e. more than 10 years ago), the ARA will become payable on 1 August 2019 (i.e. the first policy anniversary after 1 September 2018).
Example 2: If the main insured turns 65 after 1 September 2018 and the policy is at least 10 years in force, the AVBOB Reward Account will become payable on the next policy anniversary date. In other words, if the main insured person turns 65 on 15 December 2019, and the policy commenced on 1 July 2008, the ARA will become payable on 1 July 2020, being the first policy anniversary date after age 65.
Example 3: If the main insured person is 65 at 1 September 2018 or would turn 65 after 1 September 2018 and the policy is not yet 10 years in force, the projected date that the ARA will become payable will be the next policy anniversary date, after the policy has been in force for 10 years. In other words, if the policy is only 5 years old when the main insured reaches 65, the ARA will become payable on the first policy anniversary after the main insured has reached age 70.
When will this 2018 centenary special bonus be linked to my policy?
The 2018 centenary special bonus will be added to the AVBOB Reward Account on all qualifying policies on 1 September 2018
Will interest be added to my AVBOB Reward Account (ARA)?
No interest will be added to the AVBOB Reward Account. However, at the discretion of AVBOB’s Board, future special bonus allocations may be made.
What are the FREE funeral benefits?
Lives covered under an AVBOB policy qualify for a FREE funeral benefit* if the funeral is conducted by AVBOB Funeral Service. That is over and above the special bonuses that have been declared. The FREE funeral benefit* depends on the duration of cover, the type of policy and the age of the deceased. It can be a FREE basic funeral* or a discount* on the cost of the funeral, and in some instances it includes FREE transportation* of the deceased in South Africa. The person responsible for arranging the funeral will also receive an upfront cash benefit* of R2 500 to assist with additional costs. This amount and the FREE basic funeral* to the value of R11 000, will only be available if the deceased was covered for 24 months or longer under the policy. * Terms and conditions apply.
What happens to my centenary special bonus if I surrender or cancel my policy?
Unfortunately you will lose all the special bonuses including the AVBOB Reward Account (ARA) that have been declared over the years as well as the FREE funeral benefits. If the policyholder is already eligible to withdraw money from the ARA when the policyholder surrenders or cancels the policy (i.e. on or after the policy anniversary after the main insured person reaches 65 and the policy is 10 years in force), the policyholder can withdraw the money from the ARA.
Can I claim the FREE funeral benefits if I make use of another funeral parlour to arrange the funeral?
No, policyholders will not receive any FREE funeral benefits* if they do not make use of AVBOB Funeral Service to conduct the funeral.
How will I know what benefit my policy qualifies for?
All existing policyholders will receive an annual communication letter through the post. This letter sets out the policy benefits as well as any special bonuses the policyholder qualifies for. Policyholders may also:
- call our Call Centre on 0861 28 26 21;
- visit our website on www.avbob.co.za;
- dial the USSD number: *120*28262#; or
- visit the nearest AVBOB branch.
Will any debt on the policy be deducted from the centenary special bonus?
No debt will be directly deducted from the centenary special bonus. Policy debt will only be deducted from a claim amount or cashback if applicable. However, once the centenary special bonus is eligible for payment (on the policy anniversary after age 65 and 10 years in force), should the policy then lapse, the proceeds of the AVBOB Reward Account (ARA) would then be used to cover unpaid premiums. For policies that have a surrender value, this surrender value will first be used to maintain cover, and once depleted, instead of lapsing, the eligible ARA will then be used to maintain cover. For policies with no surrender value like the cashback funeral, should they have an ARA that is eligible for payment, the ARA will be used to maintain cover as a last resort to prevent the policy from lapsing until the eligible ARA balance is depleted. In other words, the ARA will be used to maintain cover until the ARA runs out, after which the policy will lapse.
Who can withdraw the AVBOB Reward Account *?
The AVBOB Reward Account* can only be withdrawn by the policyholder and the bank account must be in the name of the policyholder. Should the policyholder request the money to be paid into another person’s bank account, a nomination form will have to be completed and copies of both people’s ID documents will have to be attached.
Who will receive the payment of the AVBOB Reward Account*, when it becomes payable – the applicant/premium payer or the main insured person (for example in cases such as third party premium payer policies, where the main insured person is not the premium payer)?
Although the eligibility for the payment of the AVBOB Reward Account* is determined by the age of the main insured person on the policy, the ARA will always be payable to the applicant or premium payer of the policy. If the policy is ceded with an outright (not security) cession, the AVBOB Reward Account* is payable to the cessionary.
Whose age is used to determine whether the AVBOB Reward Account* is payable?
The age of the main insured person on the policy is used to determine whether the AVBOB Reward Account* is payable.
How do policyholders apply for the AVBOB Reward Account (ARA) and what documents are required for the payment of the ARA?
If policyholders are eligible to request for payment of the AVBOB Reward Account *, they need to submit a copy of their ID and their bank statement (not older than 3 months) in one of the following ways:
- Email these documents to info@avbob.co.za, include the policy number in the email and request for the payment of the ARA in the email.
- Submit these documents at the nearest AVBOB branch and request the branch for the payment of the ARA by completing the AVBOB AL9 form. The Branch will then submit the ID, bank statement and completed AL9 form to AVBOB Head Office.
- Log on to e-Policy on our website (www.avbob.co.za) or on the AVBOB mobile customer app and request payment of the AVBOB Reward Account *, and upload the ID and bank statement to the e-Policy website.
- Call our Call Centre on 0861 28 26 21 and request payment of the AVBOB Reward Account *.
Can policyholders only withdraw the full value of the AVBOB Reward Account* in one transaction, or can policyholders make multiple withdrawals from the AVBOB Reward Account* and if so, how often can policyholders make such multiple withdrawals?
If policyholders are eligible to request payments from the AVBOB Reward Account* and they have more than R5 000 in the AVBOB Reward Account*, they may request multiple withdrawals from the AVBOB Reward Account* at any time, but subject to a minimum of R1 000 per withdrawal request, provided at least R5 000 remains in the AVBOB Reward Account* after the withdrawal. For example, if a policyholder had R12 000 in the AVBOB Reward Account* and the policyholder makes the first withdrawal of R7 000 (leaving a balance of R5 000), the second withdrawal will have to be the full R5 000, since the balance was R5 000 after the first withdrawal.
General
Why is it taking so long for you to pay me?
AVBOB is a licensed FSP and as a result, we are subject to a long list of statutes and regulations which are overseen by the FSB. Insurance fraud is rife in the industry. We are held responsible for the systems and processes to combat such crimes and have therefore employed the services of an external company called CENSEO. They assist us in scrutinising and investigating claims to ensure that our clients do not suffer any prejudice. This doesn’t mean that we doubt the validity of your claim but we have to ensure that we manage and minimise the risks associated with fraudulent claims. Once this process is completed and no irregularities are found the claim will be admitted.
How will I be kept updated on my claim?
As soon as your claim is submitted you will receive an SMS to make you aware that your claim is at AVBOB and being processed. A second SMS will be sent to you to inform you that the claim has been selected for assessment by CENSEO. It is essential to answer all private number calls after you have submitted your claim, as a CENSEO consultant will be in touch with you to verify your claim details. This call is very important, by answering it and all questions from the consultant you are able to speed up your claim process.
Will AVBOB confirm to the private funeral parlour that my claim will be paid?
Once your claim has been cleared by CENSEO, we will process the claim immediately and you will be informed thereof.
When you sold the policy to me you promised the money will be paid within forty-eight (48) hours?
Yes that is true and once the relevant documentation has been verified as authentic and legitimate, your claim will be processed within forty-eight (48) hours. We do always inform our clients that terms and conditions apply and the validation of a claim do qualify as applicable T&C’s. I may just mention to you that we can also conduct the funeral for you and if you choose for us to do the funeral, it will speed the process up. It is however entirely your choice and you are under no obligation to make use of our services.
Why are claims being validated/audited?
Insurance companies all over South Africa are experiencing a huge increase in fraud. A large percentage of such cases are related to stolen Identity Documents. We have an obligation to protect our clients and the organisation against such crimes and therefore we have to validate some claims. We select a percentage of all claims randomly for assessment and depending on circumstances; it may take up to twenty one (21) days to conclude. On average, it only takes three (3) days to complete and then your claim will receive priority for processing and payment at our Claims Department.
Does this mean my claim will not be paid?
No, the fact that your claim will be assessed doesn’t mean that your claim will automatically be rejected. Once it has been found that there are no irregularities associated with your claim, it will be honoured by us and payment will be made without further delay.
Does this mean my claim will not be paid?
No, the fact that your claim will be assessed doesn’t mean that your claim will automatically be rejected. Once it has been found that there are no irregularities associated with your claim, it will be honoured by us and payment will be made without further delay.
Who are the claimants on a policy?
If the main assured is still alive, the proceeds are paid to him/her. If he/she has died then the nominated beneficiary receives the claim values, if no beneficiary was nominated or the nominated beneficiary is deceased, then the spouse claims, in the absence of a spouse, the premium payer and in their absence, it will be a person designated by AVBOB. This could be the parents, children, siblings of the deceased. If the assured on a J19 dies the claimant will be the premium payer.
If there are two policies covering the deceased and the funeral is conducted by AVBOB Funeral Service, can I receive my claim value in cash? Yes, provided the total cost of the funeral/tombstone order has been paid in full.
If there are two policies covering the deceased and the funeral is conducted by AVBOB Funeral Service, can I receive my claim value in cash? Yes, provided the total cost of the funeral/tombstone order has been paid in full.
What do I do when a death occurs?
If you choose to use AVBOB Funeral Service, you must contact your local AVBOB representative as soon as possible so that arrangements can be made for the removal of the deceased from the place of death. Since it is required by law that all deaths must be registered, AVBOB will assist you to do so and will require the following: The Identity Document of the deceased (should the deceased not be a South African Citizen, his/her passport is required). A medical certificate completed and signed by the deceased’s doctor (AVBOB can assist in obtaining this).
What documents we will require to process all claims promptly?
Death Certificate, as well as a copy of the first page of the BI1663 (previous), or pages 1-, 2- and 3 of 3 of the BI1663 (latest) form. Policy document or schedule/certificate. Claimant’s Declaration (available at an AVBOB agency) Medicate Certificate (available at an AVBOB Agency for completion by the deceased’s family doctor) SAPS Declaration when the death is caused by unnatural causes (available at an AVBOB agency for completion by the investigating officer).
How can AVBOB's Funeral Services help?
Use modern, hygienic mortuary facilities and offer a wide range of quality products such as caskets, tombstones, hearses and grave-side facilities? Yes
Arrange additional services such as catering, family cars, buses and tents and chairs at the house? Yes
Take care of all aspects of the burial and can they offer me products and services to suit my cultural and religious preferences? Yes
Offer a lay-by option on tombstones? Yes
Have compassionate, experienced staff available 24-hours a day, who can take me step by step through the whole funeral process and help me with filling out the relevant documentation, registering the death and processing funeral claims? Yes
Have 180 branches countrywide and can they repatriate the body of the deceased anywhere in South Africa? Yes
Arrange additional services such as catering, family cars, buses and tents and chairs at the house? Yes
Take care of all aspects of the burial and can they offer me products and services to suit my cultural and religious preferences? Yes
Offer a lay-by option on tombstones? Yes
Have compassionate, experienced staff available 24-hours a day, who can take me step by step through the whole funeral process and help me with filling out the relevant documentation, registering the death and processing funeral claims? Yes
Have 180 branches countrywide and can they repatriate the body of the deceased anywhere in South Africa? Yes
What do I get as an AVBOB policyholder?
Can AVBOB settle claims within forty-eight 48-hours? Yes
Can I take out a loan against my policy? Yes, terms and conditions apply
Is there an option to provide cover for extended family members? Yes
Can the whole family, single-parent family or just a single person be covered? Yes
After the cost of the funeral is deducted, will the balance of the assured sum be paid out to a nominated beneficiary? Yes
Does AVBOB have special benefits and discounts for policyholders? Yes
Do I receive company profits paid back to me as benefits? Yes
As an AVBOB policyholder, will AVBOB's Funeral Services include:
A FREE basic funeral* if the policy is two years or older? Yes
R2 500 cash upfront for initial expenses? Yes
FREE transportation of the deceased within the borders of South Africa*? Yes
You also get a 15% addition to the sum assured on the main life which, if needed, may be converted into a six month Retrenchment Benefit? Yes
Do AVBOB Cashback policyholder receive a AVBOB Reward Account? Yes
A FREE specified coffin? Yes
FREE use of a specified hearse? Yes
The arrangement of the funeral? Yes
The execution of the funeral? Yes
The collection and transportation of your loved one to the AVBOB mortuary? Yes
The use of AVBOB’s mortuary facilities? Yes
Graveside tent and 10 chairs? Yes
Preparation of the deceased and coffining (Preparing loved one for burial/cremation)? Yes
Assistance with the completion of all official documents? Yes
A R250 contribution to a funeral notice in a newspaper of choice? Yes
An ash coffin (where applicable)? Yes
The use of a lowering device at the graveside? Yes
Can I take out a loan against my policy? Yes, terms and conditions apply
Is there an option to provide cover for extended family members? Yes
Can the whole family, single-parent family or just a single person be covered? Yes
After the cost of the funeral is deducted, will the balance of the assured sum be paid out to a nominated beneficiary? Yes
Does AVBOB have special benefits and discounts for policyholders? Yes
Do I receive company profits paid back to me as benefits? Yes
As an AVBOB policyholder, will AVBOB's Funeral Services include:
A FREE basic funeral* if the policy is two years or older? Yes
R2 500 cash upfront for initial expenses? Yes
FREE transportation of the deceased within the borders of South Africa*? Yes
You also get a 15% addition to the sum assured on the main life which, if needed, may be converted into a six month Retrenchment Benefit? Yes
Do AVBOB Cashback policyholder receive a AVBOB Reward Account? Yes
A FREE specified coffin? Yes
FREE use of a specified hearse? Yes
The arrangement of the funeral? Yes
The execution of the funeral? Yes
The collection and transportation of your loved one to the AVBOB mortuary? Yes
The use of AVBOB’s mortuary facilities? Yes
Graveside tent and 10 chairs? Yes
Preparation of the deceased and coffining (Preparing loved one for burial/cremation)? Yes
Assistance with the completion of all official documents? Yes
A R250 contribution to a funeral notice in a newspaper of choice? Yes
An ash coffin (where applicable)? Yes
The use of a lowering device at the graveside? Yes
Why should I choose AVBOB's Cashback Lifestyle?
Provide life insurance to anyone between the ages of 18 and 80? (at next birthday) Yes
Pay back 20% of my premiums every 5 claim free years? Yes
Pay back this 20% in cash? Yes
Provide disability benefits for loss of vision, speech, amputations, quadriplegia and paraplegia? Yes
Provide critical illness benefits for heart attacks, strokes, coronary, artery bypass grafts and cancer? Yes
Provide an optional savings benefit? Yes
Include company profits paid back to me as special bonuses and enhanced FREE funeral benefits? Yes
Pay back 20% of my premiums every 5 claim free years? Yes
Pay back this 20% in cash? Yes
Provide disability benefits for loss of vision, speech, amputations, quadriplegia and paraplegia? Yes
Provide critical illness benefits for heart attacks, strokes, coronary, artery bypass grafts and cancer? Yes
Provide an optional savings benefit? Yes
Include company profits paid back to me as special bonuses and enhanced FREE funeral benefits? Yes
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