IGF Guarantee Forms

For Dealers that want to take out an IGF, Below are all the documents that are required with all the instructions.
Print Doc 1 through to 11 and follow the instructions and return to the address on the first Document.

1.Guide Document

2.Proposal Form

3.Indemnity Agreement (Complete and sign)

4.Agreement by Proposer (Complete and sign)

5.Solvency Requirements

6.Solvency Certificate

7.Guarantee Amount Return

8. Rating Form

9.Premium Example

10.Premium Calculation form

11.IGF Underwriting Rules

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Bank Guarantee (IGF Compliance)

For Dealers who choose to offer a bank Guarantee to comply with IGF Requirements, Below are the necessary forms required, and instructions.

1.Agreement to be completed and signed

2.Bank Guarantee Requirements

3.Bank Guarantee Application

4.SAIA form

OPTION 1
CONTINUE TO RECEIVE THE PREMIUMS AS BEFORE

If this option is chosen the motor dealer must:

• Obtain proper IGF cover
   
• Open a second bank account to hold premiums
   
• Appoint an auditor (to audit account and produce annual financial statements)
   
• Maintain a cash float at all times of an amount equal to one month's total business expenses
   
• Report to the Registrar of Short Term Insurers each year (Board Notice 30 of 2008)

Information courtesy of www.debella.co.za, Please go to www.debella.co.za for further information.

OPTION 2
ARRANGE FOR THE BANK TO PAY THE GROSS PREMIUM TO THE WARRANTY ADMINISTRATOR

If this option is chosen:

• You must issue a second VAT compliant invoice in the name of the administrator for every warranty sold.
   
• You will only receive payment of the commission and other fees due for each deal from the warranty administrator once the bank has paid the premium to the administrator and the account for each dealer has been reconciled.
   
• Should you sell more than one financial product, you will need to issue a separate VAT compliant invoice for each product. (This may entail 3 or 4 invoices per transaction to the bank i.e. one for the vehicle; one for an extended warranty; another for “wheel” cover and another for a “dent product”)
   
• No IGF required
   
• No cash float required
   
• No auditor required
   
• Costs = R20 – R50 per issued invoice(Depending on the Bank)

Information courtesy of www.debella.co.za, Please go to www.debella.co.za for further information.
 

OPTION 3
ARRANGE FOR THE BANK TO PAY THE GROSS PREMIUM TO DEBELLA - IOM

If this option is chosen:

• Each time a financial product is sold you will complete a customised Product Information Form that is kept on your own IT network or stand-alone PC, push the "Submit" button and wait a few minutes for your Debella system to send you a VAT compliant invoice with as many products on one invoice as required.
   
• The Invoice is then sent to the bank together with your Invoice for the vehicle and other non-insurance related VAPs
   
• The bank will pay the full amount of the single invoice to IOM and the amount of your Invoice to you
   
• IOM will pay each product supplier and will pay you the commission and any fees due for each deal
   
• You will receive payment of the commission and other fees due for each deal from IOM on a regular weekly basis
   
• No IGF required
   
• No cash float required
   
• No auditor required
   
• Cost = R100 per invoice (regardless of number products sold)

Information courtesy of www.debella.co.za, Please go to www.debella.co.za for further information.