New Farm Insurance Product Launched

December 15 - A new farm insurance product has been launched by the underwriting group, Health & Accident.

Its new Groundbreaker product is the first personal accident cover on a group scheme basis that has been introduced in South Africa.

The Groundbreaker Personal Accident Cover essentially covers employees on a farm should they become injured, disabled or if they die due to an accident.

Adrian Hofman, the Managing Director of Health & Accident said: "With the Groundbreaker policy, the employer is the policy holder and responsible for the payment of premiums in lieu of the number of employees specified in the policy."

"In addition," he explained, "all claim benefits are payable to the policyholder and not the employees or members. While the premiums are tax deductible for the policyholder, any benefits payable to the policyholder are deemed income and hence taxable."

"However, once the benefits are paid over to the employee or their dependents, any such payment is deemed a cost/out-go and as such results in a tax neutral position for the policyholder."

Injuries are coved on a 24 hour basis and it also takes into account that many farms are situated in rural areas and away from business centers.

In addition, no preliminary? health checks are required for the cover.

"Essentially, this policy covers a nominated group of individuals for specified benefits against a range of accidental disabilities," said Hofman