Pension Fund Trustees Liability
Pension funds, as well as their trustees, need coverage and Camargue’s Pension Fund Trustees Liability insurance protects the fund against loss resulting from fraud and dishonesty by an officer or trustee; negligence by an officer or trustee and computer crime committed by a third-party.
Protecting the long-term security of accrued benefits for the pension fund is the responsibility of the trustees. The trustees are duty bound to ensure that members' pension obligations continue to be suitably funded and secured.Pension Fund Trustees Liability insurance safeguards this obligation.
Why you need it
A multi-billion Rand industry, in South Africa there are up to 3500 registered funds with over 11 000 000 members and investments exceeding R2000-billion. Responsible for billions of Rands and effectively people’s lives, it’s for good reason that the Pension Fund Act places onerous responsibilities on trustees, and they may be held personally liable if their fund suffers a loss as a result of their own actions or failure to act. Effectively this puts a trustee’s entire personal estate at risk and if a judgement goes against them, they could forfeit all their attachable assets.
All too often however, the appointed board of trustees does not have the knowledge and expertise to handle the various complexities of the pension fund and third-party service providers are instated to carry out the business of the fund. Not a fail-safe approach to Pension Fund management, losses may be caused by the appointed third-party making it especially important for trustees to ensure that providers possess adequate PI and FG cover, and do not limit their liability in service level agreements.
Camargue’s unique M3 approach to insurance is geared towards managing, mitigating and migrating critical business risks – an outcome achieved through the provision of value-added risk benefits to policyholders. Notwithstanding the coverage provided in terms of the policy, the additional risk management benefits further enhance the Camargue product offering and go way beyond simple insurance. The overall result is a well-rounded and complete solution to the risks faced by businesses.
Risk Management Services Included In Policy Cover:
- Private arbitration services
- Trustee and principal officer education
- Governance surveys
- Bank account verification for large payments
Camargue: redefining the boundaries of risk management, now and into the future.
What we cover
The Fund is covered against:
- Errors and omissions
- Theft and fraud
- Third party computer crime
Trustees and principal officers receive:
- Professional Indemnity cover
- Claims preparation costs
- Costs for recovering losses that exceed the limit of indemnity
- Costs for reinstating office records
- One free reinstatement
Brochure Body Corporate Trustees Liability Proposal Form Body Corporate Trustees Liability Renewal Proposal Form General Trustees Liability Proposal Form General Trustees Liability Renewal Proposal Form Medical Scheme Trustees Liability Proposal Form Medical Scheme Trustees Liability Renewal Proposal Form Pension Fund Trustees Liability Proposal Form Pension Fund Trustees Liability Renewal Proposal Form Renewal Declaration