Founding Affidavit and Annexures

Provisionsof theexistingBurial BenefitRegulations ("BBR") 2. Background TheBBR are issued in termsof theMaster Regulationsand regulate theBurialBenefits providedby theTrust (a) 3. Commencement TheBBR shall commenceon1 April2021and replaces theBBRs previously issuedby theTrust 4. Determinationofburial benefit TheTrust shalldetermine the benefitspayable (b) Member ingood standing receivesR27,000; and DependentofaMember inGood Standingor aPaid-upDependent whowasonDateofDeath: i)between14and24yearsold (inclusive) -R27,000; (ii)between6and13yearsold (inclusive) -R13,000; (iii)between1and5yearsold (inclusive) -R9,500; (iv)betweendateofbirthand1 year old (inclusive) -R5,200;and (v)StillbirthofaMember inGood Standing -R3,500. BurialBenefits shallatall times complywith theFinancialSector Charter and theZimele standards publishedby theAssociation for Savingsand InvestmentsSouth Africa 5. and6. PaymentofBurial Benefits TheTrust shallpay thebenefits to theMembersor Beneficiarieson theDeathof theAssured Life once the claim hasbeen approvedby theTrustand provided that theMember isa Member inGoodStanding.The liabilityof theTrust shallbe limited to thepaymentof Burial Benefit. (c) Noperson shallhavea claim except for: (i)aBeneficiaryon deathofaMember inGood Standing; (ii)aMember inGood StandingonDeathofa Dependent; (iii)aMember in GoodStanding in respectofa StillbirthofaMember inGood Standing; and (iv)aBeneficiaryon thedeathofaPaid-up Dependent. Personal information Notdealtwith in theBBR. (d) Cover Cessationof cover notdealtwith in theBBR (e) Premiums DeterminationofContributions notdealtwith in theBBR. (f) 1.1.3.AssuredLives Includesa (i)Member inGood Standing; (ii)aDependentwho predeceasesaMember inGood Standing; (iii)Stillbirthbya Member inGoodStanding; and (iv)aPaid-upDependent NominationofaBeneficiary Notdealtwith in theBBR. Policydocuments Notdealtwith in theBBR. *To theextentanydifferencesbetween theprovisionsof theexistingBurialBenefitRegulationsand theproposedPukwanayaKganyaContractshavebeen identified thatdonotadverselyaffect the rightsof themembers to theKganyaBenefitsFundTrust, such changeshavebeenmarked inorange in the corresponding cellsbelow. **To theextentanydifferencesbetween theprovisionsof theexistingBurialBenefitRegulationsand theproposedPukwanayaKganyaContractshavebeen identified thatdoadverselyaffect the rightsof themembers to theKganyaBenefitsFundTrust, such changeshavebeenmarked in red in the corresponding cellsbelow. ***Materialdifferencesor changes indicated in red shading shallbeaccompaniedbya letter referencing thematerialdifferenceor change in the leftmostcolumnof the tableand the corresponding letter referencing suchmaterialdifferenceor changewillbeaccompaniedbyanexplanation for thematerialdifferenceor change. **** Capitalised termsused in this comparison shallhave themeaningascribed to them in thedocumentsconsidered in this comparison,unless indicatedotherwise Reasons formaterialdifferences a)The reason for this specific change isdue to the fact thatdue to thepromulgationof the InsuranceAct18of2017, the funeralbenefits couldno longer be providedunder group insurancepolicies in the current schemeandmust rather beprovided through individual insurancepolicies issued toeachmember.Therefore,whereas theBBRs constitute the regulationsdetailing the trustbenefits,andwhich trustbenefitsareunderwritten in termsof separategrouppoliciesentered intobetween theTrustandSDMwith theTrustas thepolicyholder entitled to the insurancebenefits, thePYKContractprovides insurancebenefits to themembersaspolicyholders. b)The reason for this change isdue to the fact that the relevant insurance laws specifically require that the insurer mustdetermine the insurancebenefitpayable,unless ithasentered intoabinder agreement (asprescribed)withanother person toperform thisexact functionasabinder holder.Note that the relationshipagreement requires continued cooperationbetweenSDM, theTrust, theZCCandKIA. c)TheBBR imposesawaitingperiod in respectofdeathoccurringdue tonaturalcauses (i.e.notanaccident) in that thedateofdeathmustbe91days from paymentof the initialMembershipContribution.The waitingperiodof91dayshasbeen included in thePYKContract,butprovisionhavebeenmade for reducedwaitingperiods toapply,per Rule2A of thePolicyholder ProtectionRules.Thewaitingperiod is therefore i)notanew inclusionand ii)alignedwith theapplicable laws. d)The reason for this change is toensure complianceby theTrustandSDM with theProtectionofPersonal InformationAct4of2013but to further allowSDM toprovide theBenefitsunder the structureof thenew scheme. e)Under theBBRs,aMember'saccess tovested trustbenefitsagainst theTrustwasdependenton suchMember qualifyingasMembers in termsof theTrustand further qualifying for trustbenefits in termsof the relevantbenefit regulations,which includedqualifyingasaMember inGoodStanding (determined,broadly speaking,with reference toperiodicand contiguouspaymentof contributions).Therefore,access suchvested trustbenefitswould ceasewhere these requirementswerenotmet.The sameprinciples remainapplicable in respectof somevestedbenefits. In respectof the vested trustbenefitswhichwillbecome insurancebenefitsunder individualpolicies pursuant to theamended insurance scheme, the termsof thepolicywillneed to complywith thePolicyholder ProtectionRulesand the terminationprovisions in thePYKContract (inaddition to the requirementsgivingeffect topreviousgroundsof terminationofvested rights),now makesprovision for thatalignment.However, it shouldbenoted that the instances inwhich cover willceaseare similar to thoseprovided for under theexisting trust regimeand further that thepolicywillnever lapsedespite the cessationof cover (i.e. cover canbe reinstatedonce the relevant requirementsaremet). It iskey tonotehere thatSDM isnow entitled to terminate thepolicywhere theTrustwasnotpreviouslyable todo so.This ishowever, standardwording for insurancepoliciesand such cancellation is (due to recent case law) still subject to itbeing inlinewithpublicpolicy. (f)SDMhas the right todeterminepremiumsasunderwriter.Note that the relationshipagreement requires continued cooperationbetweenSDM, theTrust, theZCCandKIA. 1of8 Provisionsof thePukwanaya KganyaContract ("PYK Contract") Part1 - 2. and3. Background/ Introduction ThePYKContract is issuedbySanlam DevelopingMarkets Limited ("SDM"), constituting theFuneralPolicyand theDread DiseaseandPersonalAccidentPolicyand regulates,amongstothers, the funeralbenefits provided in termsof theTrustDeed. The termsand conditionsas setout in thisPart IandPart IV,apply to theFuneralPolicy, and theDreadDiseaseandPersonalAccident Policy in respectofallMemberswhoacquired Membership to theKganyaBenefitsFund Trustbefore theEffectiveDate ("Existing Member"). In respectof suchExisting Members, the termsand conditionsas setout in thisPart IandPart IVmustbe readwith –theFuneralPolicycontained inPart II; and theDreadDiseaseandPersonalAccident Policycontained inPart III TheprovisionsofPart IVdonotapply tonew Members. Part1 -1.1and21.6Background ThePYKContract isabindingpolicy contract betweenSDMand thePolicyholders,pursuant to their Membership. Part1 -7.2. Commencement The scheme relating to thePYK Contract commenceswith the amendment to theTrustDeed, providingMemberswithaccess to thePYKContractasvested right,but cover for Assured Lives, subject to theprovisions of clause6ofpart IV insofar as it relates to insurance cover for ExistingMembers,willonly commencewhen theMember accepts theoffer of insuranceby SDMpursuant to: (i) the paymentof the initial MembershipContribution,or (ii) completionof theMPPForm, andpurchasingaMembership Book. Part1 -8.1,and 8.4Determination ofburialbenefit SDM shall determine the Benefitspayable. SDM shallatall timesbeentitled toamend the Benefits,byway of31days'written notice to the policyholder. Part1 -3.6,6.1.16and6.1.37andPart2 -2.1 andAnnexeB. Determinationofburialbenefit Part1 -3.6 -FuneralBenefits shallatall times complywith theFinancialSector Charter, to theextentapplicable. Part1 -6.1.16and6.1.37 -Payableondateof deathofanAssured Lifeon theoccurrenceof an InsuredEvent. Part2 -2.1Thebenefitspayableare subject to themaximum amountspayableasprescribed by law. AnnexeB - Policyholder - R27,000; and DependentofaMember inGoodStandingor a Paid-upDependentwhowasonDateofDeath: i)between14and24yearsold (inclusive) - R27,000; (ii)between6and13yearsold (inclusive) - R13,000; (iii)between1and5yearsold (inclusive) - R9,500; (iv)betweendateofbirthand1year old (inclusive) -R5,200;and (v)Stillbirth -R3,500. Part1 -6.1.16and6.1.37andPart 2 -2.2. PaymentofBenefits Part1 -6.1.16and6.1.37 -Payable ondateofdeathofanAssured Life on theoccurrenceofan Insured Event. Part2 -2.2 -The FuneralBenefits arepaiddirectlybySDM to the policyholders (in theeventof the deathofaDependantChildasan Assured Lifeor upon the happeningofaStillbirth)or the nominatedBeneficiary (theevent of thedeathofaPolicyholder or a Paid-upDependant)once the claim hasbeenapprovedbySDM. Part1 -8.2. and8.3 - PaymentofBenefits Part1 -8.2. - Inorder to qualify for paymentof the Benefits, thePremiums mustbepaid in respectof thePolicies, subjectatall times to theWaiting Periods thatmaybe applicableand/or the provisionsof clause3.1.4 ofPart IV in respectof ExistingMembers. Part1 -8.3 -SDM shall notallow anydeductions from thebenefitpayable. Part2 -3. WaitingPeriod Benefitpaymentsare subject toawaitingperiodof91days, calculated from the InceptionDate,whichwillnotapply in instances where: (i)an InsuredEventoccursasa resultofanAccident; (ii) the policyholder confirms that thepolicyholder andallAssured Lives were covered in termsofanother funeralpolicy thathad lapsedor hadbeen terminatedor cancelled withanother insurer,which previouspolicywas in forceat least31daysbefore the Inception Date; (iii) thepolicyholder confirms that thepreviouspolicy provided cover for similar riskscovered in termsof thisPolicyand for the sameAssured Lives; and (iv) thepreviouspolicy imposeda WaitingPeriod shorter than91 (ninety-onedays),whichhadbeen completed in full; or (v) thepreviouspolicy imposedaWaiting Periodof91 (ninety-one)daysor longer,ofwhich91 (ninety-one) dayshadbeen completed NoFuneralBenefitswillbepaid in theevent that the InsuredEvent occurswithin theWaitingPeriod. TheWaitingPeriod canbe reduced if the91dayperiodof the previouspolicyhadnotbeen completedand riskcoveredunder thatpreviouspolicywere the same. To theextent that (i) the Policyholder doesnotgive such confirmation,or (ii)SDM cannot verify the correctnessof such confirmation, thenaWaitingPeriod of91 (ninetyone)dayswillbeapplied. Inorder for SDM to reduce theWaitingPeriodand/or for the WaitingPeriodnot toapply, thePolicyholder mustprovide confirmationof thepreviouspolicy, in the formandmanner as the Insurer may request.To theextent that (i) thePolicyholder does notgive such confirmation,or (ii) the Insurer cannot verify the correctnessof such confirmation, thenaWaitingPeriodof91 (ninetyone)dayswillbe applied. Confirmation for the previouspolicy is consideredbySDM tobe material to theassessmentof the risk in termsof thisPolicy. Part1 -4. and15. Personal information Thepolicyholdershave consented to their personal informationbeing sharedwithSDMby theTrust (or its dulyappointedadministrator) and for SDM (or itsdulyappointed administrator) to share such informationwitha thirdparty that assistsSDM inproviding theBenefits. TheMember (asPolicyholder)will notbe required to complete separatedocuments for insurance purposes.TheMember agrees that the information completedby the Member aspartofMembership,may beusedby the Insurer for purposes of thisPukwanayaKganyaContract SDMwillonly retain such information for as longas it isneededandwillat all times complywith the relevant dataprotection legislation. Part2. -8. Cover Cover shall ceasewhen: (i) thePYKContract is cancelled; (ii) the policyholder ceases to beamember of the Trust; (iii) the last Assured Lifedies; and (iv) theTrust fails topay apremium for an Assured Lifeasa result of thePolicyholder's failure topayhis/her Membership Contribution, subjectat all times to the ForgivenessRules. Part1 -5. Policy documents ThePYKContractand thePolicySchedulewill form partof the MembershipTermsand ConditionsBooklet, despite it constitutinga separateagreement between theMember in his/her capacityas Policyholder andSDM. Allnoticesand disclosures tobe distributedby the Insurer in termsof the Applicable Laws shallbe suppliedby the Insurer or itsdulyappointed administrator,being Kganya Insurance Administrators, to the Policyholder through the ChurchBranches affiliatedwith theZCC, or suchother meansof communicationasmay beappropriate in the circumstances. Part1 -3.1,3.2. and3.3and9.1.Premiums Part1 -3.1.,3.2.and3.3. - TheTrustprocuredaccess to thisPukwanayaKganyaContract for all Members (other thanChurchOfficialswhoareMembers)who satisfy the requirements for Membership to theTrust. TheTrust (as thepremium payer)merelypays thepremiumsonbehalfof thepolicyholders toSDM,whichpremium ismadepursuant to the vested rightofaMember against theTrust for thepaymentof suchPremium.The Trustwillnotpaypremiums if thePolicyholder (asMember) fails topay their MembershipContribution to theTrustpursuant to their Membership. Part1 -9.1. Premiumsarepaid in termsofa separatepremium paymentagreement. Premiumsarepaidonly if thepolicyholder isaMember,andwithout limitation to this requirement,pays its MembershipContribution. If the MembershipContributionsarenotpaid, theTrustwillnotbeobliged topay thepremiumswillnotbepaiduntilMembershipContributionsarepaid again Premiumsmustbepaid in fullandaredue monthly inadvance. In theevent thatanyof theabove conditionsarenotmet, theTrust shall notbeobliged,and shallno longer pay, thePremiums toSDM in respectof thePolicyholder,until such time as thePolicyholder resumespaymentof his/her MembershipContributions to theTrust,asprovided for in the Master Regulations, readwith theBasicBenefitsRegulations. PaymentofPremiums shallatall timesbemade inaccordancewith,and subject to, the termsof thePremium PaymentAgreement,whichPremium PaymentAgreement canbemadeavailableon request inwriting. Paymentof thePremiumsby theTrustdoesnotentitle theTrust toany rights in termsof thePYKContractnor entitle it toanyBenefits. Part1 -9.2. Premiums SDM shallbeentitled to review and change thepremiumsat leastonan annualbasis in linewith the Policyholder ProtectionRules, subject toanyApplicable Laws. SDM shall review thePremiumsatany time if thereare reasonableactuarial grounds todo so,or where the review is required in the interestof the Policyholder. SDM reserves the right to review and change thePremium atany timeupon theoccurrenceofanyof the following events: (i) theMembership Contributions change; and/or (ii) the claims ratioexceeds80% in respectof allPolicyholders. SDM shall, following theoutcomeof the review,beentitled to change the Premium witheffect from thedateas specifiedby the Insurer,bygiving31 (thirtyone)daysprior writtennotice to thePolicyholder, subjectatall times to theApplicable Laws. Part1 -6.1.5and12.1and12.2AssuredLives Part1 -6.1.5 -For purposesof theFuneralPolicy (i) thePolicyholder,and (ii)all childrenof thePolicyholder whoqualifyasDependentChildren,and includesPaid- upDependants,whoare indicated in thePayment ReceiptBookletandStillbirths in respectof the Policyholder, in respectofwhom SDMwillprovide cover in termsof thePYKContract Part1 - 12.1and12.2 - ADependant shallbe the followingpersons indicated on thePaymentReceiptBookletasDependant Children: (i)a childborn to thePolicyholder; (ii)a legallyadopted childof thePolicyholder; (iii)a child adoptedby custom by thePolicyholder (provided that bothnaturalparentsaredeceased). Thisdoeshowever,exclude (i)a childwho survives the policyholder and isnotaPaid-upDependent; (ii)a child ofadependentChildof thePolicyholder (i.e. grandchildren); and (iii) childrenover theageof25 (unless this child ispermanentlydependanton the Policyholder byvirtueofmental illnessor physical disabilitywhichoccurredwhilst thepersonqualifiedas aDependantandprovided thatat leastonePremium waspaidby theTrust in respectof thePolicyholder prior to thedate the childwouldotherwise cease to qualifyasaDependantChildand thereafter Premiums werepaid in respectof thePolicyholder ineach ensuingMonth). Part1 -12.3 to12.5 Part1 -12.3 -New-born childrenborn to thePolicyholder and children adoptedby thePolicyholder mustbe indicated in thePaymentReceipt Bookletwithin6 Monthsafter thedate ofbirthor adoptionas the casemaybe. Part1 -12.4 -A childofaPolicyholder (who is the father) shallnotbea DependentChildof thePolicyholder unless (i) thenaturalmother is deceasedor isnotaMember of the ZCC,or (ii) thePolicyholder is the legal guardianof sucha child. Part1 -12.5 -ThePolicyholder shall provideall suchdocumentaryand other evidence,asmaybe requiredby SDM from time to time, toestablish whether a childqualifiesasa DependentChild for purposesof the PYKContract. Part2 -5. Nominationofa Beneficiary Nominatedby inserting thenames in theMPP Form, whichnomination canbe changedor withdrawnby thePolicyholder (by completinganAMPP form or contactinga call centreasprovided for in thePolicy) atany timebefore thebenefit ispaid.Nomination willautomatically cancel if theBeneficiary predeceases thepolicyholder or dies simultaneously with thepolicyholder. Beneficiarieswillnothaveany rightsunder thePYK Contractuntil such timeasabenefitbecomes payable. If thePolicyholder fails (i) tonominateaBeneficiary or (ii) if suchBeneficiary: (i)wasnot validly appointed; (ii) isunder theageof18at thedateof the InsuredEventor otherwise legallydisqualified; (iii) isdeceased; (iv) cannotbe identifiedwith reasonable certainty; (v) is indisposedor unreachable; and (vi) isnot considered tobea suitablepersonby thePolicyholder'sChurch Branch or theTrust, then thebenefitswillbe payable to the suchapersonas recommendedby the Policyholder'sChurchBranchand/or theKganya BenefitsFundTrustand finallydeterminedby the Insurer after consideringall such informationas the Insurer maydetermine tobenecessary for purposes of suchpayment. Upon thedeathof thePolicyholder, theBeneficiary canno longer be changed. Review of Changes to the Burial / Funeral Benefits of the Kganya Benefits Fund Trust