SwissFin – SwissSure Newsletter July 2024

Dear Readers,

We welcome you to the winter edition of our Newsletter.

Our national elections have come and gone with a positive outcome. The ANC is no longer solely in charge and the establishment of Government of National Unity in its current form is unprecedented in the history of South Africa. Citizens are hopeful that the new structure will result in a better service delivery and less corruption.

On a different note, the insurance premium landscape is changing quickly:
Weather-related claims are escalating and driving up reinsurance costs. The catastrophic events over the last years marks the departure from South Africa’s previous status as a Catastrophic Event (CAT) free zone. This trend is not isolated to South Africa. It is a global phenomenon reshaping the insurance industry’s sustainability because of climate change. Unfortunately, consumers will soon have to brace themselves for large premium increases. An actual example is the insurance of thatch buildings. Reinsurance costs have surged and made it impossible for local insurers to offer the coverage at the same rates. Most insurance companies can no longer afford to accept any thatch risks.

As usual, we have included information across the board regarding investments, short-term insurance, immigration and other related topics. This newsletter can also be viewed under https://www.swissfin.co.za/newsletters/swissfin-swisssure-newsletter-july-2024/.

Enjoy the reading, with best regards,

Your SwissFin / SwissSure Team

1. INVESTMENTS

• Interest rates: fixed deposits, insurance plans, tax-free investment amounts and our foreign exchange rates
• Sonnenberg Wealth Management’s investment outlook
• Do not transfer ZAR form abroad to your South African account

2. LOCAL AND INTERNATIONAL FINANCIAL NEWS

• Deposit Insurance Act (CODI) came into effect on 1 April 2024

3. TAXATION

• Tax filing season opened on 15 July 2024

4. SWISSSURE – SHORT-TERM INSURANCE NEWS

• Unoccupied buildings and insurance coverage
• Santam increases excesses and changes geyser rates
• Old Mutual Insure: Changes to Swiftcare and solar installations
• Do you have lithium batteries? Please read about the fire risks!
• Santam terminates JF Towing contract
• Discovery Insure cancels all commercial policies and exits market
• Vantage increases excesses
• Bryte policy wording changes
• Santam and car windscreen replacements
• Hijackers have new targets in South Africa: Delivery vehicles!

5. IMMIGRATION

• Visa backlog update
• Your PR application still outstanding after years? You may want to appoint an attorney!
• Comedy of errors: Motsoaledi’s ‘ill-advised’ visa rules withdrawn
• Digital Nomads Visa introduced
• Department issues White Paper on immigration
• Automatic visa extension arrives – but far too late!

6. HEALTH INSURANCE

• Turnberry gap cover makes acceptance easier
• National Health Insurance (NHI) Act signed off and immediately challenged in court
• BDAE increases rates for the Expat Infinity Plan

7. OTHER

• Foreign driver’s license conversion
• We are on Social Media – follow us!
• SwissSure sponsors Padel Tournament
• We value your comment

Interest rates: Fixed deposits, insurance plans, tax-free investment amounts and our foreign exchange rates >>

We currently offer the following rates:

Interest rates ››

The minimum investment is R 100’000. Terms and conditions apply. The rates do fluctuate on a daily basis and the interest rate depends on the investment amount.

Insurance Plans: Guaranteed income/growth plans (5-year term), approx. 80% of income tax-free: ››

Tax-free interest income – maximum investment amounts: ››

R 1,5 Mio. for taxpayers under the age of 65
R 2,3 Mio. for taxpayers between the age of 65 and 75
R 2,5 Mio. for taxpayers over the age of 75

These figures mean that you can invest these amounts in i.e. our money market or fixed deposit offerings and not pay any tax. Couples married in community of property can double these amounts!

Underlying assumptions: 8,0 % effective interest rate and no other income sources.

SwissSure Forex Rates ››

The above table shows that our rates are very attractive compared to commercial banks. Over and above, we do not charge any fees when the funds are credited or transferred to another local account.

Should you wish to receive more information on our money market fund offering, the tax-efficient income plans or our forex offerings please contact Mr. Tony R. Hug on .

Sonnenberg Wealth Management’s investment outlook ››

As mentioned in our last newsletter, our Swiss partner will be regularly sharing their investment views with you. Please click here to read the interesting publication.

Do not transfer ZAR form abroad to your South African account ››

When transferring funds from abroad to South Africa, make sure you transfer the foreign currency and not ZAR. You need to explicitly state to your foreign bank that they must not convert into Rands abroad!

Over the last months, we have noticed a few instances where the bank abroad already converted and clients can easily lose 2-3% because of the bad exchange rate offered abroad.

Deposit Insurance Act (CODI) came into effect on 1 April 2024 ››

On 1 April 2024, South Africa’s deposit insurance legislation, under the administration of the Corporation for Deposit Insurance (CODI) came into effect. The Corporation for Deposit Insurance is a new initiative mandated by the South African Reserve Bank (SARB) aimed at providing additional protection for your deposits.
Your deposits are now covered by CODI up to R 100’000 per depositor, offering an extra layer of protection in the unlikely event of financial challenges faced by the bank.

Tax filing season opened on 15 July 2024 ››

The South African Revenue Service has quietly announced the start of tax season 2024. These are the most important deadlines:

Auto Assessments:

SARS will start commencing issuing the auto assessments from 1 July 2024 to 14 July 2024.
It is imperative that these auto assessments are checked in that one needs to submit a corrected return within a defined period otherwise the ability to object against these auto assessments falls away.

Non-Provisional Taxpayers:

The period for a non-provisional taxpayer to render their return commenced on 15 July 2024 and ending on 21 October 2024.

Provisional Taxpayers:

The filing season for provisional taxpayers commences on 15 July 2024 and ends on 20 January 2025.

Trust Tax Returns:

There is now a separate filing period for Trust tax returns commencing on
16 September 2024 and ending on 20 January 2025.
Trustees must ensure that the IT3T has been submitted prior to completing the Trust tax return. SARS is making use of the penalty provisions to raise additional revenue. The late submission of a return will result in penalties and fees in order to try to reverse such penalties in the limited circumstances available.

Unoccupied buildings and insurance coverage ››

Whether a building is of a domestic or commercial nature, any unoccupied building poses a greater risk for burglaries or damages that are not immediately detected.
You urgently have to inform us if your building stands empty – most insurance companies will not provide cover if the property becomes unoccupied for more than 30 consecutive days and can only be insured by written agreement from the insurer

Santam increases excesses and changes geyser rates ››

Over the past two years we have mostly seen an abnormal claims frequency trend, with adverse weather conditions in many parts of the country adding pressure to claims volumes. Vehicle repair costs have increased well above inflation and the nature of vehicle thefts has changed, with newer and more expensive vehicles being stolen. The frequency and average cost of property claims, especially buildings, has increased to new levels, in particular weather-related incidents and geyser claims. In order to limit premium increases, Santam has adjusted The excess/first amount payable as follows:

PERSONAL LINES
Vehicles:
Basic excesses and Riot and Strike excess will increase by R 500.
Classic Vehicle: Temporarily detached parts excess will increase by R 1500.
Above is applicable to all our products and the excesses for policyholders over 55 years will remain unaltered at nil
Vehicle glass excesses will also remain unaltered.
Buildings:
Basic excesses will increase by R500 for all products.
Excess for Comprehensive Subsidence or Landslip cover for the Executive product will increase by R500.
Building Accidental Damage excess will increase by R 500.
The above mentioned excesses for policyholders over 55 years will however increase from zero R 1000.
Excess changes will take effect on new business and additions to existing business from 19 April 2024, and on renewals from July 2024.

COMMERCIAL LINES
The minimum First amount payable on the following sections will increase to R 5000.
Fire, Buildings Combined, Office Contents, Houseowners and Householders.
First amount payable changes will take effect on new business and additions to existing business from 6 April 2024, and on renewals from July 2024.

The insurer has also amended their rates for geyser replacments. If you are a Santam policyholder, please click here to view the changes.

Old Mutual Insure: Changes to Swiftcare and solar installations ››

The insurer has amended its terms for the above items. If you are an OMI policyholder, please click here to read the changes.

Do you have lithium batteries? Please read about the fire risks! ››

Since June last year, only four lithium battery fires have resulted in damages of more than R45 million at one insurance company alone. One of the biggest concerns is incorrect installation. Please note that your system must be installed and tested by a qualified electrician in compliance with all applicable legislation and manufacturer’s guidelines. A valid electrical certificate of compliance and test report for the system must be issued and available for inspection when required.
The main fire problem with lithium batteries is the thermal runaway. A thermal runaway is a chain reaction within a battery that leads to rapid temperature and pressure increase.

Causes of thermal runaway could be due to any of the following:
a) Internal short circuits due to physical damage or manufacturing defects.
b) Overcharging and discharging- exceeding the recommended charging or discharging rates.
c) External heat sources – batteries exposed to high ambient temperatures or near heat generating devices.
d) Age and wear and tear over time.

To prevent failure, regular inspections and maintenance are recommended to identify potential risks.

In addition to the above, no combustible material may be stored within two meters of any inverter or battery!!
Landlords must ensure that their tenants are made aware of the dangers of and requirements in terms of these systems as failure to do so may result in the repudiation of a claim.
With a fire, traditional fire extinguishers aren’t enough:
Regular extinguishers (CO2, water, and powder) are ineffective: These extinguishers can’t effectively cool the battery or smother the flames. Lithium batteries self-oxidize (generating their own oxygen) and burn at extremely high temperatures, rendering these extinguishers powerless.
Lithium batteries emit toxic and flammable gasses: The gasses that these batteries emit are not only poisonous but are also combustible and can ignite and explode. Getting close to the fire without the correct protective wear is extremely dangerous and often not possible even with the necessary protection.
The most cost-effective is to install these systems into a separate building like an outbuilding or a garage or behind sufficent fire walls and doors (at least 2hr rating) to limit the spread of fire to the entire building.

Santam terminates JF Towing contract ››

This is a notice that JF Towing contract with Santam has been terminated. JF Towing should not be allowed to tow any Santam vehicles as vehicles are not being released and thus delaying claims to be processed. Should clients authorize for JF Towing to tow vehicles, the onus will be on the clients to have vehicles released. In the event of an accident and towing required, we suggest that you contact Santam SOS on 0860 505 911 for a contracted tow operator to be appointed.

Discovery Insure cancels all commercial policies and exits market ››

The insurer has made the decision to exit the commercial lines market as of the end of August 2024. Discovery has established an arrangement with Old Mutual Insure who will offer to help clients to procure new commercial cover, should they be interested. The 90-day notice period of cancellation of Discovery Business Insurance policies will be effective from 31 May 2024, and no new commercial policies will be accepted. All clients have been informed separately.
Please note that personal lines policies and benefits will not be impacted by the decision.

Vantage increases excesses ››

In line with most other insurers, Vantage has also adjusted their excess structure. If you are a Vantage policyholder, please click here to read the summary of all cover limits and excesses. The effective date will be 1 July 2024 for all new business / new additions, and 1 August 2024 for existing policies, phased in at renewal.

Bryte policy wording changes ››

The policy wording changes will be effective from 1 July 2024. If you are a Bryte policyholder, please click here to download your new policy wording.

Santam and car windscreen replacements ››

In order to contain claims costs, Santam had laid out a new procedure to have car windscreens repaired or replaced. Please click here to read the circular.

Hijackers have new targets in South Africa: Delivery vehicles! ››

Hijackers are increasingly targeting business-owned vehicles, especially delivery vehicles, due to the boom in online shopping. Where the hijacked loads have been reported, 81% of these were fast-moving consumable goods (FMCG), including alcohol, clothing, groceries, couriered parcels through online sales platforms, homeware and medication. Certain Gauteng routes remain notorious hotspots for fleet vehicle crime, including the N12, R24/R21, R23, and N3 corridors. When supply chains are disrupted, it can lead to delays in delivery schedules, which can have a ripple effect on other aspects of the business. In addition, insurance premiums for fleet vehicles may rise in response to the higher levels of crime, which could be passed on to delivery costs, adding further financial strain on businesses operating in high-risk areas.
Gauteng remains the province with the highest volume of business vehicle-related crime, accounting for 56% of incidents. KwaZulu-Natal experiences 14% of these incidents and the Western Cape 13%.

Visa backlog update ››

South Africa’s massive visa backlog hits over 92’000 applications! This figure excludes applications for permanent residence, which is estimated to stand at over 40’000. Ex-Home Affairs minister Aaron Motsoaledi stated that the main problem is the amount of spousal visa applications.
The table below outlines the full visa backlog.

The ex-minister noted that, as of 31 January 2024, the Critical Skills, Business and General Work Visas that form part of the annual performance plan have no backlogs. Motsoaledi previously indicated that relative/spousal visas could take up to two years to process, due to the work that needs to be done to verify the details. Applicants for relative and/or spousal permits wait as long as two years for their visa due to the requirement that their notarial agreements and other documents such as birth certificates, bank statements and marriage certificates submitted as proof of existence of a spousal or parental relationship are verified.

Your PR application still outstanding after years? You may want to appoint an attorney! ››

After our class act lawsuit against the Department of Home Affairs, most PR applications were finally approved. There were some applications pending and those clients that appointed an attorney, finally were issued their PR certificates.
If you are still waiting for your PR and wish to obtain a list of the attorneys involved, please request such from Mrs Wanda Scott –

Comedy of errors: Motsoaledi’s ‘ill-advised’ visa rules withdrawn ››

The Department of Home Affairs (DHA) has been forced to withdraw its latest visa rules which came under heavy criticism on several fronts — not least because it promulgated the Second Amendment of the Immigration Regulations a day before the closing date for public comments on the draft version and became effective on 28 March, which is a constitutional requirement.
The new regulations allowed for a “remote work visa”, also known as a “digital nomad visa”, and finally introduced a new points system for foreigners with “critical skills”, which requires highly skilled international workers to have “the ability to adapt within the republic”.
Ex-Home Affairs Minister Aaron Motsoaledi admitted that the National Economic Development and Labour Council (Nedlac) had questioned the gazetting of the regulations, because it had curtailed the process, saying it was “ill-advised”.

Digital Nomads Visa introduced ››

Effective May 20, 2024, the South African government has implemented a digital nomad visa which allows eligible foreign nationals to work remotely for a foreign company or as a freelancer in South Africa. The South African government has implemented a Digital Nomad Visa which allows foreign nationals who earn a sufficient minimum income according to government regulations to reside in South Africa and perform work as a freelancer or for an employer outside of South Africa. Digital Nomad Visa holders conducting work for more than six months within a 36-month period would require the applicant to register with the South African Revenue Services. The Department of Home Affairs will publish further details on the program in an official gazette in the coming months.

The following conditions apply:
Occupation: Must be employed in a remote work position by a recognized foreign employer. Given this classification, this could also be referred to as the South African Remote Working Visa.
Income Thresholds: Applicants require a minimum annual salary of R1,000,000.00 (approximately $64,800 USD).

Tax Clearance: If the visa is issued for a period not exceeding 6 months within a 12-month period the foreigner will not be required to register with South African Revenue Service.

Medical Insurance: Medical Insurance is not Required. The applicant must have a medical certificate however, showing good health.

Criminal Record: Absence of any criminal convictions.

Indicated Visa Validity and Duration: It is indicated to be 3 years with renewal options.

Dependents: Spouses and dependents may be included on the visa, with additional requirements and fees.

Comment:
The applicants must be employed by a foreign company – so freelancers and entrepreneurs cannot apply, makes the visa unattractive to many possible applicants. The income threshold is internationally high and taking into account the high income tax bracket at approx. 40%,will prohibit many applications, should the applicants stay longer than 6 months in South Africa. Lastly, the administrative incapacity of the Department with a huge backlog in visa applications is another hindrance for applicants.
Yet again, we feel that Mr Motsoaledi and his Department has again failed dismally!

Department issued White Paper on immigration ››

The previous minister of the Department of Home Affairs, Mr Aaron Motsaledi, published a white paper on immigration to overhaul the system. It faced widespread criticism for lacking substantial policy directions. It also suggested withdrawing from several international conventions on the rights of refugees and migrants, to which South Africa is a signatory.
Please click here to read the draft. Is very likely though that the paper will end up in the rubbish bin, seeing that Mr Motsaledi finally had to give up his post in the Department.

Automatic visa extension arrives – but far too late! ››

We were very surprised to see no communication whatsoever from the Department regarding the automatic extension for pending visa applications at the end of June. It seems that Mr Motsaledi, who no longer heads up the Department after the Cabinet reshuffle, could not be bothered issuing another extension. However, the newly appointed Minister, Mr Leon Schreiber, from the Democratic Alliance, immediately saw the emergency and published an extension on 4 July 2024. Please click here to read his circular.

Turnberry gap cover makes acceptance easier ››

The gap cover insurer has announced their new Favourable Underwriting Concession from 1st July 2024:
– 3 months general waiting period applies to all benefits, except in the event of an accident.
– 10 months waiting period on pregnancy/childbirth.
– 12 months waiting period on gastro-intestinal, musco-sceletal and cancer.
The above concessions are valid from 1 July to 30 September 2024 for new business, people moving from another gap cover and for existing clients wanting to upgrade their plans.

National Health Insurance (NHI) Act signed off and immediately challenged in court ››

One week before the national elections, president Ramaphosa signed the NHI bill into law. Although the NHI Bill is lauded as a big step in creating access to universal health coverage for all South Africans, we believe there to be too many challenges facing the implementation of the Bill. The Bill has clearly created anxiety amongst health insurance companies, doctors and members alike. We expect the full implementation of the NHI Fund to take a very long time – certainly more than 5 years and perhaps as long as 20 years. This means that medical schemes and existing health insurance programmes (including primary healthcare and Gap cover) will be allowed to continue with a full set of benefits as they do today. The Board of Health Care Funders (BHF) has already put up a legal challenge against the provisions of the NHI Bill, in particular Section 33, largely based on constitutional grounds.

BDAE increases rates for the Expat Infinity Plan ››

Unfortunately, the adjustment for the product is unavoidable due to the continuing rise in healthcare costs almost everywhere in the world. It is the first time since the launch of the Infinity Plan in 2019 that premiums increase.

The premium adjustment is effective from 1 October 2024 and ranges between 12 to 17 percent. Please click here the see the new rate table.

Foreign driver’s license conversion ››

We have come across a nice summary by the Department of Transport.
Please click here to view it.

We are on Social Media – follow us! ››

Our page has been launched and we are excited about it. Our profile is also appearing on LinkedIn, Instagram and Facebook. We will be sharing important information with you.

Follow us on:

SwissSure sponsors Padel Tournament ››

We were invited to sponsor the tournament between Atlantic Beach vs. Tableview at the beginning of June. Although it was carried out under cold weather conditions, participants had great fun and Tableview defended their title very well.

We value your comment ››

Do you want to know about a specific topic, share something with us or comment?
Please feel free to send us an e-mail ( or ) so that we can assist you.