Lump Sum Disability Benefit Policy for Risk Benefit Option E. Employers participating in the Cape Joint Pension Fund

Transcription

1 Lump Sum Disability Benefit Policy for Risk Benefit Option E Employers participating in the Cape Joint Pension Fund

2 POLICY NUMBER CJS-GL1 {herein referred to as the policy} A POLICY OF INSURANCE for Employers participating in the CAPE JOINT PENSION FUND (Defined Contribution Section) {herein referred to as the EMPLOYER(S)} underwritten by MMI GROUP LIMITED An authorised Financial Services Provider {hereinafter referred to as MOMENTUM} Signed by For MOMENTUM 18 March 2015 Date

3 Page 2 INDEX Page 1. Preamble 3 2. Definitions 4 3. Membership 8 4. Premiums DISABILITY benefit INSURED BENEFIT COVER increases Temporary absence Information Records Endorsements Cancellation of policy Enquiries Domicilium citandi et executandi and notices Money payments Jurisdiction Benefits inalienable Indemnification Non-indulgence Life fund Sole contract 25 SCHEDULE 29

4 Page 3 1. PREAMBLE 1.1 MOMENTUM will in return for the payment of premiums pay those benefits specified in the SCHEDULE on the terms and conditions contained in this policy. 1.2 In this policy where the context so permits, words signifying the singular include the plural, words indicating the masculine gender include the feminine and vice versa. 1.3 Any provision contained in this policy shall be read, understood and interpreted in the context of the provisions of this policy as a whole.

5 Page 4 2. DEFINITIONS The following words and expressions used in this policy have been defined to prevent any doubt about their respective meanings. These words and expressions are indicated by capital letters throughout. Unless the context indicates otherwise, the following words and expressions shall have the following meanings and cognate expressions shall bear corresponding meanings: ACCIDENT - an unlooked-for event, which could not reasonably be expected to occur and/or was not designed, and which results in DISABILITY caused directly and independently of all other causes by some external and visible means arising from the said event; ACTIVELY AT WORK - at work for the duration of a normal work day (as defined in the CONVERSION ELIGIBLE MEMBER S employment contract) performing the key functions of his/her INSURED OCCUPATION; ANNUAL SALARY/IES - the CONVERSION ELIGIBLE MEMBER S annual salary/wage as advised by the EMPLOYER and agreed to by MOMENTUM for purposes of this policy. Changes to a CONVERSION ELIGIBLE MEMBER S ANNUAL SALARY shall, for purposes of this policy, be effective from the first day of the month in which the CONVERSION ELIGIBLE MEMBER S annual salary/wage increases; COMMENCEMENT DATE - the first day of August 2014 or such later conversion date chosen by their EMPLOYER; CONVERSION ELIGIBLE - a MEMBER who converted his/her MEMBER benefit from defined benefit to defined contribution on 1 August 2014 or such later conversion date chosen by his EMPLOYER and who as part of the conversion elected or was defaulted to RISK BENEFIT OPTION E;

6 Page 5 DATE OF DISABLEMENT - the date from which the CONVERSION ELIGIBLE MEMBER has suffered DISABILITY as determined by MOMENTUM having regard to: (i) the medical evidence, (ii) the key functions of his/her INSURED OCCUPATION, (iii) his/her last DAY ACTIVELY AT WORK, (iv) the definition of DISABILITY; DAY - any day including a Saturday, Sunday or official public holiday in South Africa; DISABILITY / DISABLED - shall mean the condition specified in the SCHEDULE; EMPLOYER - 1 or more LOCAL AUTHORITIES participating in the FUND; FINAL SALARY - a CONVERSION ELIGIBLE MEMBER'S ANNUAL SALARY at the date of his/her DATE OF DISABLEMENT, with the proviso that fluctuating emoluments will be averaged over the 12 months preceding disablement; FREE COVER LIMIT - a certain limit up to which CONVERSION ELIGIBLE MEMBERS are granted INSURED BENEFIT COVER without having to submit medical evidence of good health to MOMENTUM, as determined by MOMENTUM from time to time; FUND - shall mean the fund specified in the SCHEDULE; IMPAIRMENT - the inability of a CONVERSION ELIGIBLE MEMBER, due to illness or injury, to fulfil the key functions of his/her INSURED OCCUPATION before adjustments or accommodations are made to the standard terms and

7 Page 6 conditions of the employment contract; INSURED BENEFIT - cover for the DISABILITY benefit set out COVER in the SCHEDULE; INSURED OCCUPATION - the CONVERSION ELIGIBLE MEMBER S occupation as defined in his/her job description and shall mean those duties that the CONVERSION ELIGIBLE MEMBER was routinely performing while ACTIVELY AT WORK immediately prior to the DATE OF DISABLEMENT, and encompasses any adaptations to such duties and / or to the CONVERSION ELIGIBLE MEMBER S work circumstances which may reasonably be made or be expected to be made by the EMPLOYER to accommodate the CONVERSION ELIGIBLE MEMBER S disablement in light of the requirements of the Labour Relations Act, or its successor in title. Where the CONVERSION ELIGIBLE MEMBER S duties have changed within 3 months prior to the DATE OF DISABLEMENT as a direct consequence of any such adaptations, the duties performed prior to the change will constitute his/her INSURED OCCUPATION; LOCAL AUTHORITY - a local authority as defined in the RULES; MEMBER - shall mean a person who has qualified for, been admitted to and not ceased to qualify for active ongoing membership of the FUND; NORMAL RETIREMENT - the age set out in the SCHEDULE; AGE POLICY ANNIVERSARY - the date set out in the SCHEDULE; POLICY YEAR - a year commencing on a POLICY ANNIVERSARY;

8 Page 7 RISK BENEFIT OPTION D - the risk benefit option available to a MEMBER of the FUND that do not provide cover in terms of this policy; RISK BENEFIT OPTION E - the risk benefit option available to a MEMBER of the FUND that provides cover in terms of this policy; RULES - the rules of the FUND in force from time to time, registered with the Registrar of Pension Funds and approved by the Commissioner for the South African Revenue Service; SCHEDULE - the SCHEDULE attached to this policy; WAITING PERIOD - the period as set out in the SCHEDULE starting from the DATE OF DISABLEMENT. If there is any doubt that the CONVERSION ELIGIBLE MEMBER is DISABLED, MOMENTUM may apply a longer waiting period, but not longer than 6 months. If the CONVERSION ELIGIBLE MEMBER experiences DISABILITY as described in paragraph (a) of the definition of DISABILITY, it is not necessary for the CONVERSION ELIGIBLE MEMBER to be DISABLED for 6 months before a benefit is payable in terms of this policy.

9 Page 8 3. MEMBERSHIP 3.1 INSURED BENEFIT COVER in terms of this policy shall be restricted to CONVERSION ELIGIBLE MEMBERS. 3.2 INSURED BENEFIT COVER in terms of this policy shall commence on the COMMENCEMENT DATE. 3.3 INSURED BENEFIT COVER in terms of this policy shall cease on the day that: the CONVERSION ELIGIBLE MEMBER leaves the service of the EMPLOYER, unless a benefit in respect of him/her remains payable in terms of the policy, or the CONVERSION ELIGIBLE MEMBER ceases to be a MEMBER of the FUND, or the CONVERSION ELIGIBLE MEMBER attains the NORMAL RETIREMENT AGE, or the premium payment in respect of the CONVERSION ELIGIBLE MEMBER ceases, or this policy is cancelled, whichever of the aforementioned events may first occur. 3.4 A CONVERSION ELIGIBLE MEMBER who submitted a DISABILITY INSURED BENEFIT COVER claim, and is still in the WAITING PERIOD at the expiry of the termination notice period, will enjoy full INSURED BENEFIT COVER if premiums are paid during the WAITING PERIOD. 3.5 Risk Benefit Options CONVERSION ELIGIBLE MEMBERS may opt to be covered for either RISK BENEFIT OPTION D or E from the COMMENCEMENT DATE. The default option will be RISK BENEFIT OPTION E if no option is exercised. No medical evidence of the CONVERSION ELIGIBLE MEMBER S state of health is required and the conditions of clause 3.6 will not apply. The CONVERSION ELIGIBLE MEMBER is not required to be ACTIVELY AT WORK on the COMMENCEMENT DATE A CONVERSION ELIGIBLE MEMBER may change from RISK BENEFIT OPTION E to RISK BENEFIT OPTION D with effect from the first of July each year.

10 Page 9 Where a CONVERSION ELIGIBLE MEMBER changes from one category to another as described above, the EMPLOYERS must inform MOMENTUM, in writing, 1 month prior to 1 July each year. 3.6 Proof of insurability A CONVERSION ELIGIBLE MEMBER S INSURED BENEFIT COVER under this policy is limited to the FREE COVER LIMIT, unless proof of insurability for the amount by which his/her INSURED BENEFIT COVER exceeds the FREE COVER LIMIT is submitted to the satisfaction of MOMENTUM A CONVERSION ELIGIBLE MEMBER S INSURED BENEFIT COVER in excess of the FREE COVER LIMIT shall be granted if MOMENTUM accepts the proof of insurability. Should MOMENTUM not accept the proof of insurability, the part of the INSURED BENEFIT COVER dependent on proof of insurability and any subsequent increases thereof may be declined or granted on special terms at the discretion of MOMENTUM. Such special terms shall be notified in writing to the EMPLOYER and cover shall commence on the date of such notification On a monthly basis the EMPLOYERS will notify MOMENTUM of any CONVERSION ELIGIBLE MEMBERS whose benefits exceed the FREE COVER LIMIT and who were not underwritten previously. Where a CONVERSION ELIGIBLE MEMBER S increased INSURED BENEFIT COVER exceeds the FREE COVER LIMIT and he/she does not submits proof of insurability in terms of clause 3.6.1, the increased INSURED BENEFIT COVER shall only be payable if he/she dies as a result of an ACCIDENT within 3 months of such increase As long as a CONVERSION ELIGIBLE MEMBER'S membership remains unbroken, he/she shall not have to submit proof of insurability again for any INSURED BENEFIT COVER for which he/she previously submitted proof of insurability If proof of insurability was submitted in terms of clause 3.6.1, further INSURED BENEFIT COVER is granted without proof of insurability up to an amount that MOMENTUM determines from time to time INSURED BENEFIT COVER in respect of which proof of insurability was required, becomes effective on a date determined by MOMENTUM.

11 Page The cost of the proof of insurability which is required according to clause 3.6.1, is borne by MOMENTUM, unless otherwise specified For the purpose of this clause, proof of insurability means proof to the satisfaction of MOMENTUM of the insurability of the CONVERSION ELIGIBLE MEMBER concerned for INSURED BENEFIT COVER Notwithstanding the above, these provisions will not apply to the INSURED BENEFIT COVER selected by a CONVERSION ELIGIBLE MEMBER when exercising any of the options relating to the conversion as described in clause 3.5.

12 Page PREMIUMS 4.1 Payment INSURED BENEFIT COVER provided in terms of this policy is subject to payment of the required premium, the rate of which shall be notified to the EMPLOYERS by MOMENTUM from time to time The EMPLOYERS will remit the premiums so calculated to MOMENTUM monthly in arrears, with 15 days' grace. A breakdown of the premium payment should be provided by the EMPLOYERS together with the premium payment MOMENTUM will notify the EMPLOYERS of any arrear premiums within 1 month after the expiry of the grace period The CONVERSION ELIGIBLE MEMBER will enjoy full INSURED BENEFIT COVER if premiums are paid during the WAITING PERIOD. Cover will lapse if no premiums are paid during this period. 4.2 Premium rate guarantee The premium rate used to calculate the INSURED BENEFIT COVER premium is guaranteed until 30 June Thereafter the premium rate is guaranteed from the date of notification to the EMPLOYERS for the lesser of: (i) (ii) 12 months; or the period ending immediately prior to next POLICY ANNIVERSARY. 4.3 Revisions Notwithstanding the provisions in clause 4.3.4, MOMENTUM will notify the EMPLOYERS of the premium rate that will apply for the next POLICY YEAR 1 month prior to the POLICY ANNIVERSARY or, during a POLICY YEAR by giving 2 months written notice, subject to the data requirements of in respect of the COMMENCEMENT DATE or the previous POLICY ANNIVERSARY (as the case may be) being met MOMENTUM reserves the right to adjust the premium rate at its sole discretion if the relevant information described in clause is not received timeously.

13 Page Should the revision process be delayed due to the EMPLOYERS not providing MOMENTUM with the necessary information, MOMENTUM will apply the premium rate adjustments retrospectively to the beginning of the applicable POLICY YEAR MOMENTUM shall request the annual membership data from the EMPLOYERS 1 month prior to the POLICY ANNIVERSARY This data must be provided to MOMENTUM no later than 1 month after the POLICY ANNIVERSARY. The data should have an effective date as at the POLICY ANNIVERSARY reflecting the revised ANNUAL SALARIES Notwithstanding anything to the contrary contained elsewhere in this policy, MOMENTUM reserves the right to alter the premium rate during a POLICY YEAR in the event of: (i) (ii) (iii) a change in membership; or a change in the principal business activities carried out by the EMPLOYER that may materially affect MOMENTUM S risk under this policy and which occurs during that POLICY YEAR; or a new associated or subsidiary company joins the EMPLOYER; or (iv) the INSURED BENEFIT COVER as set out in the SCHEDULE changes MOMENTUM will have the right to alter the premium rate retrospectively to the last POLICY ANNIVERSARY, if it is discovered that there has been a material and significant error or difference in the data supplied to MOMENTUM when the premium rate was last determined For the purposes of this clause 4, a change in the membership will be deemed to have occurred if there is: (i) (ii) a 5% increase or decrease in the average age of CONVERSION ELIGIBLE MEMBERS; or a 10% increase or decrease in the total number of CONVERSION ELIGIBLE MEMBERS.

14 Page Differences between premiums paid and premiums required Depending on the actual premiums paid in comparison to the premiums required in terms of this policy, an adjustment premium may become payable or refundable. If so, the adjustment premium will be calculated at the same time as the revised premium rate referred to in clause 4.3. This adjustment premium will amount to the difference between premiums which should have been paid for the current POLICY YEAR and actual premiums paid. 4.5 Failure to pay premiums timeously In the event of the EMPLOYERS failing to pay the premiums within the days of grace or such extended period as MOMENTUM may allow, any benefits payable will be reduced in the same proportion as the actual premium paid differs from the required premium.

15 Page DISABILITY BENEFIT 5.1 Amount of DISABILITY benefit The DISABILITY benefit cover in respect of each CONVERSION ELIGIBLE MEMBER shall be equal to the DISABILITY benefit described in the SCHEDULE. 5.2 Payment of DISABILITY benefit If a CONVERSION ELIGIBLE MEMBER becomes DISABLED on or after the COMMENCEMENT DATE, MOMENTUM will have the obligation to pay to the CONVERSION ELIGIBLE MEMBER the CONVERSION ELIGIBLE MEMBER'S DISABILITY benefit, provided that such payment will only occur once: (i) (ii) all the relevant terms and conditions of this policy are fulfilled, proof to the satisfaction of MOMENTUM that the DISABLED CONVERSION ELIGIBLE MEMBER was at the date of his/her DISABLEMENT: (a) a MEMBER of the FUND, and (b) in the permanent and full-time service of the EMPLOYER, or (c) employed on a fixed-term contract with the EMPLOYER. (iii) MOMENTUM has assessed and approved the claim, and (iv) the WAITING PERIOD has expired. Payment of the benefit is subject to the provision that the documents required by MOMENTUM are submitted to MOMENTUM in respect of the DISABLED CONVERSION ELIGIBLE MEMBER MOMENTUM must be provided with the required documents within 6 months of the DATE OF DISABLEMENT. MOMENTUM will not be liable to pay a benefit in terms of this policy until such required documentation has been received. Failure to provide MOMENTUM with the indicated documentation within the stated period will result in MOMENTUM declining the claim due to the late submission of

16 Page 15 the claim documentation. The provisions of this clause relate only to the submission of documents in support of the claim and in no way detracts from MOMENTUM'S right to determine the DATE OF DISABLEMENT It is the CONVERSION ELIGIBLE MEMBER S responsibility to support the presence of an IMPAIRMENT which might result in DISABILITY as defined in this policy by submitting the required documents. If no such documents or outdated or incomplete documents are submitted, the cost for the necessary medical evidence required to commence the assessment will be for the CONVERSION ELIGIBLE MEMBER S account. Where MOMENTUM requires, in addition to the above specialist medical evidence, reports from an independent or another specialist, the cost of such reports will be for MOMENTUM S account If the CONVERSION ELIGIBLE MEMBER is being assessed for DISABILITY and additional information is required in order to further assess the claim, the required information should be provided within 3 months of the date of the request in order to further evaluate the current claim. Should the additional information not be received within: (i) (ii) 3 months of the date of request, the claim will, on receipt of the additional information, be considered to be the first occurrence of DISABILITY which shall be subject to the terms and provisions of this policy in all respects; and 6 months from the request, MOMENTUM will decline the claim With the consent of the CONVERSION ELIGIBLE MEMBER, MOMENTUM may share medical evidence with other parties concerned with the assessment of the claim. 5.3 Repudiation and appeal If MOMENTUM has declined a claim, a CONVERSION ELIGIBLE MEMBER may lodge a written appeal within 3 months of MOMENTUM S written repudiation. Should the CONVERSION ELIGIBLE MEMBER wish to pursue the repudiated claim, the costs would be for the CONVERSION ELIGIBLE MEMBER S account.

17 Page Further medical evidence, with which to appeal the decision made by MOMENTUM, must be received within 3 months from the date that the claim was declined or the additional evidence will be used as the assessment of a new bout of disability with a new DATE OF DISABLEMENT The claim shall be subject to the provisions of this policy in all respects, unless the claim is being pursued by submitting additional medical or other relevant evidence within 3 months from the time that the claim is repudiated. 5.4 Cost of medical evidence The cost of initial medical evidence required for the proof of DISABILITY, which must be supplied by the medical practitioner and specialist who provides the CONVERSION ELIGIBLE MEMBER with the regular care or whom the CONVERSION ELIGIBLE MEMBER has consulted in connection with the condition which is contributing to his/her DISABILITY, shall be for the CONVERSION ELIGIBLE MEMBER'S account. The cost of any further medical evidence will be for MOMENTUM'S account. 5.5 Exclusions that the CONVERSION ELIGIBLE MEMBER'S DISABILITY did not directly or indirectly arise from one of the following causes: (i) (ii) (iii) wilful self-injury; active participation in war, invasion, act of foreign enemy, hostilities or warlike operations (whether war has been declared or not), civil war, military uprising, military or usurped power, martial law, insurrection, rebellion or revolution; active participation in any mutiny, riot or civil commotion that assumes the proportions of or amounts to a popular uprising; (iv) any act of terrorism or action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism, even if there are other causes or events that contribute to the claim at any stage. In this policy terrorism means an act, the threat of an act, or any preparation for an act: (a) which may or may not involve violence or the use of force by any person or group (whether they are acting alone or on behalf of or in connection with any organisation, regime or any constitutional or

18 Page 17 practicing government); and (b) (c) (d) that is, or appears to be, intended to intimidate, harm or influence any government, the public, or a section of the public, or to disrupt any segment of the economy; and that from its nature or context is or appears to be done in connection with political, social, religious, ideological or similar causes or objectives; any nuclear reaction or nuclear radiation that the CONVERSION ELIGIBLE MEMBER does not reach NORMAL RETIREMENT AGE before the expiry of the WAITING PERIOD that during the first 12 months after the COMMENCEMENT DATE the CONVERSION ELIGIBLE MEMBER S DISABILITY did not directly or indirectly arise from a condition for which the he/she was treated, or about which he/she knew or could reasonably have been expected to know, or about which he/she sought medical advice in the 6 months before the applicable date above. Notwithstanding the above, this provision will not apply to the INSURED BENEFIT COVER selected by a CONVERSION ELIGIBLE MEMBER when exercising any of the options relating to the conversion as described in clause Maximum benefits from other sources MOMENTUM may limit the benefit payable in terms of this part so that the CONVERSION ELIGIBLE MEMBER'S monthly income after disability (as defined below) does not exceed 75% of his/her average monthly earnings before disability (as defined below) The average monthly earnings of the CONVERSION ELIGIBLE MEMBER before disability shall be determined by taking into account the total of all income and remuneration which accrued to the CONVERSION ELIGIBLE MEMBER from his/her engaging in his/her occupation during the 12 months before the DATE OF DISABLEMENT, but excluding any form of fringe benefits of a non-recurrent nature. Further, all expenditure and costs incurred directly with a view to earning such income and remuneration shall be deducted from the total income and remuneration.

19 Page For the purpose of this clause 5, the CONVERSION ELIGIBLE MEMBER'S monthly income after disability shall be determined by taking into account the following receipts, namely - (i) all income and remuneration payable to the CONVERSION ELIGIBLE MEMBER directly or indirectly for services which he/she renders or rendered or regarding an occupation which he/she follows or followed, decreased by all expenditure and costs incurred directly with a view to earning that income and remuneration; and (ii) any form of benefit or remuneration (whether in cash or not) to which anybody becomes entitled to in regard to, or as a result of the CONVERSION ELIGIBLE MEMBER'S DISABILITY or to which anybody would have been entitled if this benefit had not existed, and this includes any gratuity or other payment from a fund or scheme which provides benefits at retirement or disability and benefits of the Compensation for Occupational Injuries and Diseases Act, 1993, as amended, but not including the following, namely - (a) (b) (c) (d) (e) any waiver of the employer's contributions to pension and provident funds in terms of group disability policies; the benefits in terms of the Motor Vehicle Accidents Act, 1986, as amended, read together with section 3 of the Multilateral Motor Vehicle Accidents Fund Act, 1989, as amended; the benefits in terms of any policy owned by the employer from which no benefit consequent upon the DISABILITY of the CONVERSION ELIGIBLE MEMBER shall become payable to the CONVERSION ELIGIBLE MEMBER or to his/her spouse or to any member of the CONVERSION ELIGIBLE MEMBER'S family; disability income benefits which are payable for not more than 2 years to cover continued business expenses; lump sum receipts of which the aggregate does not exceed the larger of R and 2,5 times the ANNUAL SALARY of the CONVERSION ELIGIBLE MEMBER before the DATE OF DISABLEMENT; (f) any benefit which would have been payable at the surrender of a policy or at early retirement or withdrawal from any fund or scheme for reasons other than ill health. For this purpose a retirement annuity policy is deemed to have a surrender value;

20 Page 19 (g) benefits payable if the CONVERSION ELIGIBLE MEMBER, due to an ACCIDENT, experiences the total and permanent loss of the sight of 1 or both eyes or the use of any part of his/her body; (h) benefits payable due to the CONVERSION ELIGIBLE MEMBER being permanently, continuously and totally prevented from performing the normal actions and function with regard to the care of his/her body or from taking care of his/her personal interests; and (i) during the period of 2 years commencing on the commencement of DISABILITY, regular receipts which shall in total not be more than a monthly receipt of 25% of the CONVERSION ELIGIBLE MEMBER'S average monthly earning before disability Lump sum receipts taken into account in the determination of the average monthly income after disability shall be deemed regular monthly income equal to such lump sum receipts divided by Any receipt as a capital amount payable by instalments over a period of 10 years or less, shall also be deemed to be a lump sum receipt Where a receipt is expressed as a capital amount by instalment over a period exceeding 10 years, the instalments shall be treated for the purposes of determining the average monthly income after disability as an income benefit payable at regular intervals The CONVERSION ELIGIBLE MEMBER shall, at the request of MOMENTUM and to its satisfaction, submit proof of the extent of his/her average monthly income after disability, and if the CONVERSION ELIGIBLE MEMBER fails to submit such proof, the benefit payable in terms of this part may be decreased at MOMENTUM'S discretion.

21 Page Termination of service If a CONVERSION ELIGIBLE MEMBER'S service is terminated with the EMPLOYER and he/she is DISABLED on the date of termination of service, he/she shall continue to be a CONVERSION ELIGIBLE MEMBER in terms of and subject to clause 7, as if the EMPLOYER had consented to his/her absence from work and to the assurance on his/her life being continued, provided that he/she shall not continue to be a CONVERSION ELIGIBLE MEMBER later than the date on which a benefit becomes payable in terms of this clause or a claim for the benefit is declined. 6. INSURED BENEFIT COVER INCREASES Where a CONVERSION ELIGIBLE MEMBER S DISABILITY benefit is increased for any reason not related to the exercising any of the options relating to the conversion as described in clause 3.5, the exclusion contained in clause will also be applied from the effective date of such increase to the increased portion of a CONVERSION ELIGIBLE MEMBER S DISABILITY benefit. The exclusion contained in clause will however not apply to any increase in a CONVERSION ELIGIBLE MEMBER S DISABILITY benefit attributable to an improvement in his ANNUAL SALARY not exceeding 20% per annum. 7. TEMPORARY ABSENCE 7.1 A CONVERSION ELIGIBLE MEMBER'S absence from the EMPLOYER'S service with no, reduced or full remuneration may, subject to the EMPLOYER'S discretion and acceptance by MOMENTUM, be regarded as approved temporary absence. 7.2 The EMPLOYER shall provide MOMENTUM with such information as MOMENTUM may require in order to recognise the interruption in service as approved temporary absence. If the information is acceptable, the CONVERSION ELIGIBLE MEMBER'S INSURED BENEFIT COVER shall continue during the period of approved temporary absence provided the required premium is paid in respect of the CONVERSION ELIGIBLE MEMBER. 7.3 In the event that the information provided is not acceptable to MOMENTUM then the CONVERSION ELIGIBLE MEMBER'S INSURED BENEFIT COVER shall cease during the period of temporary absence.

22 Page The period of approved temporary absence shall not exceed 12 months. In the case of a CONVERSION ELIGIBLE MEMBER who through injury or illness is unable to follow his/her INSURED OCCUPATION, the maximum period of approved temporary absence will be 6 months. Periods of approved temporary absence which are interrupted by less than 6 consecutive calendar months are regarded for the purposes of these provisions as one period of approved temporary absence. 7.5 Notwithstanding the provisions of clause 7.4, the period of temporary absence exceeding 12 months may be approved by MOMENTUM subject to: (i) the CONVERSION ELIGIBLE MEMBER receiving full remuneration from the EMPLOYER, and (ii) MOMENTUM being informed thereof and accepting to continue INSURED BENEFIT COVER for the CONVERSION ELIGIBLE MEMBER. 8. INFORMATION 8.1 The EMPLOYERS shall supply MOMENTUM with such forms and CONVERSION ELIGIBLE MEMBERS' particulars as MOMENTUM may require for the purposes of this policy. 8.2 Should the age notified to MOMENTUM in respect of a CONVERSION ELIGIBLE MEMBER prove to be incorrect, MOMENTUM shall not be liable to pay any greater benefit under this policy than would have been secured by the premiums paid in respect of the CONVERSION ELIGIBLE MEMBER had his/her age been correctly stated at the outset. Should the age notified to MOMENTUM in respect of a CONVERSION ELIGIBLE MEMBER prove to be greater than his/her NORMAL RETIREMENT AGE, MOMENTUM shall not be liable to pay any benefit in respect of the CONVERSION ELIGIBLE MEMBER and all premiums received by MOMENTUM in respect of the CONVERSION ELIGIBLE MEMBER subsequent to his/her NORMAL RETIREMENT AGE shall be refunded. 9. RECORDS MOMENTUM shall have the right to inspect the records kept by the EMPLOYERS in connection with this policy. Should it become evident from such inspection that a claim has been admitted in respect of a person who was not entitled to a benefit under this policy, MOMENTUM shall, notwithstanding anything to the contrary contained in this policy, recover from the EMPLOYER the amount of such claim.

23 Page ENDORSEMENTS Save for the premium guarantee provided in clause 4.2.1, MOMENTUM may alter the terms and conditions of this policy at any time subject to giving the EMPLOYERS 3 months' written notice of its intention to do so, or such shorter period as provided for elsewhere in this policy. 11. CANCELLATION OF POLICY 11.1 The EMPLOYERS will have the right to cancel this policy by giving MOMENTUM written notice thereof at least 1 month prior to the cancellation date MOMENTUM will have the right to cancel this policy with immediate effect if: (i) the EMPLOYERS has not fulfilled any of their obligations in terms of this policy; or (ii) the number of CONVERSION ELIGIBLE MEMBERS decreases to 5 or less at any point in time. 12. ENQUIRIES CONVERSION ELIGIBLE MEMBERS shall address enquiries in respect of this policy to the EMPLOYERS. MOMENTUM shall assist the EMPLOYERS in answering enquiries but shall not correspond directly with CONVERSION ELIGIBLE MEMBERS. 13. DOMICILIUM CITANDI ET EXECUTANDI AND NOTICES 13.1 The parties choose as their domicilium citandi et executandi their respective addresses set out in this clause for all purposes arising out of or in connection with this agreement at which addresses all processes and notices arising out of or in connection with this agreement, its breach or termination may validly be served upon or delivered to the parties For the purposes of this agreement the parties' respective addresses shall be: MOMENTUM - Mispel Street Parc du Cap Bellville

24 Page The EMPLOYERS - Bellmont Office Park Twist Street Bellville or such other address, not being a post office box or poste restante, of which the party concerned may notify the other in writing. The EMPLOYERS shall notify MOMENTUM of a change of address as indicated in clause within 14 days Any notice in terms of this agreement shall be in writing and shall: if delivered by hand be deemed to have been duly received by the addressee on the date of delivery; if posted by prepaid registered post be deemed to have been received by the addressee on the 15 th day following the date of such posting; if given by telegram be deemed to have been received by the addressee 1 day after dispatch; if given by facsimile transmission, be deemed to have been received by the addressee on the same day, subject to clause 13.4; if given by electronic mail be deemed to have been received by the addressee on the date of delivery of the electronic mail message The original document sent by post shall be deemed, in the absence of proof to the contrary to have been received by the addressee by the 15th day following the date of facsimile transmission. 14. MONEY PAYMENTS All monies payable to MOMENTUM shall be paid in the currency of the Republic of South Africa at such place as shall be agreed upon between MOMENTUM and the EMPLOYERS from time to time. 15. JURISDICTION Any question of law arising relating to the operation of this policy shall be decided upon by a South African court of law and according to the law of the Republic of South Africa. Any party aggrieved by a decision made by MOMENTUM relating to this policy, may direct his/her grievance to the office of the Ombudsman for Long-Term Insurance.

25 Page BENEFITS INALIENABLE 16.1 No CONVERSION ELIGIBLE MEMBER or EMPLOYER has the right to assign, transfer, cede, pledge, alienate or otherwise dispose of any benefit available in terms of this policy The benefits payable in terms of this policy: are safeguarded against any form of confiscation under a judgment or order of a court of law, and do not vest in the estate of the CONVERSION ELIGIBLE MEMBER or dependant on insolvency or assignment; and shall not be available for the payment of the CONVERSION ELIGIBLE MEMBER S creditors The safeguarding in clause 16.2 above is applicable to: policies in operation for at least three years; and policy benefits to a maximum amount of R50 000, or any other maximum amount prescribed in terms of the Long-term Insurance Act, No 52 of INDEMNIFICATION The EMPLOYERS shall indemnify the CONVERSION ELIGIBLE MEMBERS against all losses resulting from the negligence, dishonesty or fraud of any of its officers having the receipt or charge of monies payable in terms of this policy. 18. NON-INDULGENCE No indulgence on the part of any of the parties in exercising any right conferred upon such party in terms of this policy shall constitute a waiver of any such right nor shall any single or partial exercise of any right preclude any other or future exercise thereof or the exercise of any other right under this policy. 19. LIFE FUND 19.1 This policy is issued subject to the memorandum and articles of association of MOMENTUM The liability of MOMENTUM is limited to the capital and assets in its life fund.

26 Page SOLE CONTRACT This policy is the consequence of the negotiations between the EMPLOYERS and MOMENTUM and constitutes the whole and entire agreement between the parties with regard to the subject matter hereof. Therefore there are and have been no agreements, representations or warranties between the parties other than those specifically set forth herein.

27 Page 26 SCHEDULE TO POLICY CJS-GL1 Definitions: 1. DISABILITY / DISABLED - a condition in which, in the opinion of MOMENTUM, (a) the CONVERSION ELIGIBLE MEMBER totally and permanently and continuously cannot use both eyes, or both hands, or both feet, or 1 hand and 1 foot; or (b) the CONVERSION ELIGIBLE MEMBER is totally and permanently and continuously unable, even with further in-service training, to follow- (i) (ii) the regular occupation which he/she practised immediately before; and the occupations which he/she, in view of his/her training and experience, may reasonably be expected to follow; and which (i) (ii) is directly and exclusively caused by a bodily injury or an illness to which the CONVERSION ELIGIBLE MEMBER did not negligently or wilfully expose himself/herself, except in the interests of the law or to protect his/her or another s life or property; and is not attributable to intentional selfinflected injury. 2. FUND - the CAPE JOINT PENSION FUND (DEFINED CONTRIBUTION SECTION).

28 Page NORMAL RETIREMENT - The last day of the month in which the AGE CONVERSION ELIGIBLE MEMBER attains the age of 65 years. 4. POLICY ANNIVERSARY - 1 July in the year 2015 and in each subsequent year. 5. WAITING PERIOD - 3 months Benefits: 6. Amount of CONVERSION - (i) RISK BENEFIT OPTION D: ELIGIBLE MEMBER S DISABILITY benefit NIL (i) RISK BENEFIT OPTION E: 2 times the CONVERSION ELIGIBLE MEMBER'S FINAL SALARY The DISABILITY benefit above will be reduced by 1/60 th thereof for each month by which the CONVERSION ELIGIBLE MEMBER S attained age exceeds 60 years. The DISABILITY benefit is subject to a maximum of R ,00. This SCHEDULE is effective from 1 August 2014.