Frequently Asked Questions

This centenary special bonus applies to all qualifying policies that are in force on 30 June 2018 and will be added to an AVBOB Reward Account (ARA) for each risk policy (all qualifying life and funeral policies excluding savings plans and saving plan benefits) on 1 September 2018. The money in the account may, on request of the member be withdrawn on the policy anniversary, after the main insured person turns 65 years AND the policy has been in force for 10 years. Members that are eligible for payment on 1 September 2018, will be able to withdraw the money on the policy anniversary following the bonus allocation date of 1 September 2018.

Savings plan policies and savings plan rider benefits will receive a bonus of 12% of the balance in the investment account as at 30 June 2018. For savings plan policies this centenary special bonus will be added to the balance in the investment account when the policy matures. However, for savings plan rider benefits, this centenary special bonus will be added to the balance in the investment account when the main insured person turns 65 years and can be withdrawn on request by the member.

In summary, all three the following events should have taken place, before the member will be eligible to withdraw the money from the AVBOB Reward Account (ARA):

• on or after the first policy anniversary;
• after the main insured person reaches age 65;
• and the policy has been in force for 10 years.

A payment from the AVBOB Reward Account can only be requested on or after the policy anniversary, once the main insured person has turned 65 years and the policy has been in force for 10 years or longer. Hence, eligibility will depend on the date the policy started and the age of the main insured person. The centenary special bonus is also paid out on death of the main insured person before age 65, or when the policy matures (e.g. for the savings plan policies).

Example 1: If the main insured person is already 65 on 1 September 2018 and the policy started on 1 August 2000 (i.e. more than 10 years ago), the ARA will become payable on 1 August 2019 (i.e. the first policy anniversary after 1 September 2018).

Example 2: If the main insured turns 65 after 1 September 2018 and the policy is at least 10 years in force, the AVBOB Reward Account will become payable on the next policy anniversary date. In other words, if the main insured person turns 65 on 15 December 2019, and the policy commenced on 1 July 2008, the ARA will become payable on 1 July 2020, being the first policy anniversary date after age 65.

Example 3: If the main insured person is 65 at 1 September 2018 or would turn 65 after 1 September 2018 and the policy is not yet 10 years in force, the projected date that the ARA will become payable will be the next policy anniversary date, after the policy has been in force for 10 years. In other words, if the policy is only 5 years old when the main insured reaches 65, the ARA will become payable on the first policy anniversary after the main insured has reached age 70.

The 2018 centenary special bonus will be added to the AVBOB Reward Account on all qualifying policies on 1 September 2018

No interest will be added to the AVBOB Reward Account. However, at the discretion of AVBOB’s Board, future special bonus allocations may be made.

Lives covered under an AVBOB policy qualify for a FREE funeral benefit* if the funeral is conducted by AVBOB Funeral Service. That is over and above the special bonuses that have been declared. The FREE funeral benefit* depends on the duration of cover, the type of policy and the age of the deceased. It can be a FREE basic funeral* or a discount* on the cost of the funeral, and in some instances it includes FREE transportation* of the deceased in South Africa. A R3 000 discount on a tombstone, cremation or aquamation and the person responsible for arranging the funeral will also receive an upfront cash benefit* of R3 000 to assist with additional costs. This amount and the FREE basic funeral* to the value of R13 500, will only be available if the deceased was covered for 24 months or longer under the policy. * Terms and conditions apply.

Unfortunately you will lose all the special bonuses including the AVBOB Reward Account (ARA) that have been declared over the years as well as the FREE funeral benefits. If the member is already eligible to withdraw money from the ARA when the member surrenders or cancels the policy (i.e. on or after the policy anniversary after the main insured person reaches 65 and the policy is 10 years in force), the member can withdraw the money from the ARA.

No, members will not receive any FREE funeral benefits* if they do not make use of AVBOB Funeral Service to conduct the funeral.

All existing members will receive an annual communication letter through the post. This letter sets out the policy benefits as well as any special bonuses the member qualifies for. Members may also:

• call our Call Centre on 0861 28 26 21;
• visit our website on avbob.zero-data.co.za;
• dial the USSD number: *120*28262#; or
• visit the nearest AVBOB branch.

It is very important that we have members’ current address and correct contact details on record.

No debt will be directly deducted from the centenary special bonus. Policy debt will only be deducted from a claim amount or cashback if applicable. However, once the centenary special bonus is eligible for payment (on the policy anniversary after age 65 and 10 years in force), should the policy then lapse, the proceeds of the AVBOB Reward Account (ARA) would then be used to cover unpaid premiums. For policies that have a surrender value, this surrender value will first be used to maintain cover, and once depleted, instead of lapsing, the eligible ARA will then be used to maintain cover. For policies with no surrender value like the cashback funeral, should they have an ARA that is eligible for payment, the ARA will be used to maintain cover as a last resort to prevent the policy from lapsing until the eligible ARA balance is depleted. In other words, the ARA will be used to maintain cover until the ARA runs out, after which the policy will lapse.

The AVBOB Reward Account* can only be withdrawn by the member and the bank account must be in the name of the member. Should the member request the money to be paid into another person’s bank account, a nomination form will have to be completed and copies of both people’s ID documents will have to be attached.

The age of the main insured person on the policy is used to determine whether the AVBOB Reward Account* is payable.

If members are eligible to request for payment of the AVBOB Reward Account *, they need to submit a copy of their ID and their bank statement (not older than 3 months) in one of the following ways:

• Email these documents to info@avbob.co.za, include the policy number in the email and request for the payment of the ARA in the email.
• Submit these documents at the nearest AVBOB branch and request the branch for the payment of the ARA by completing the AVBOB AL9 form. The Branch will then submit the ID, bank statement and completed AL9 form to AVBOB Head Office.
• Log on to e-Policy on our website (avbob.zero-data.co.za) or on the AVBOB mobile customer app and request payment of the AVBOB Reward Account *, and upload the ID and bank statement to the e-Policy website.
• Call our Call Centre on 0861 28 26 21 and request payment of the AVBOB Reward Account *.

If members are eligible to request payments from the AVBOB Reward Account* and they have more than R5 000 in the AVBOB Reward Account*, they may request multiple withdrawals from the AVBOB Reward Account* at any time, but subject to a minimum of R1 000 per withdrawal request, provided at least R5 000 remains in the AVBOB Reward Account* after the withdrawal. For example, if a member had R12 000 in the AVBOB Reward Account* and the member makes the first withdrawal of R7 000 (leaving a balance of R5 000), the second withdrawal will have to be the full R5 000, since the balance was R5 000 after the first withdrawal.

As soon as your claim is submitted you will receive an SMS to make you aware that your claim is at AVBOB and being processed. A second SMS will be sent to you to inform you that the claim has been selected for assessment by CENSEO. It is essential to answer all private number calls after you have submitted your claim, as a CENSEO consultant will be in touch with you to verify your claim details. This call is very important, by answering it and all questions from the consultant you are able to speed up your claim process.

Once your claim has been cleared by CENSEO, we will process the claim immediately and you will be informed thereof.

Yes that is true and once the relevant documentation has been verified as authentic and legitimate, your claim will be processed within forty-eight (48) hours. We do always inform our clients that terms and conditions apply and the validation of a claim do qualify as applicable T&C’s. I may just mention to you that we can also conduct the funeral for you and if you choose for us to do the funeral, it will speed the process up. It is however entirely your choice and you are under no obligation to make use of our services.

Insurance companies all over South Africa are experiencing a huge increase in fraud. A large percentage of such cases are related to stolen Identity Documents. We have an obligation to protect our clients and the organisation against such crimes and therefore we have to validate some claims. We select a percentage of all claims randomly for assessment and depending on circumstances; it may take up to twenty one (21) days to conclude. On average, it only takes three (3) days to complete and then your claim will receive priority for processing and payment at our Claims Department.

Does this mean my claim will not be paid?

No, the fact that your claim will be assessed doesn’t mean that your claim will automatically be rejected. Once it has been found that there are no irregularities associated with your claim, it will be honoured by us and payment will be made without further delay.

If the main assured is still alive, the proceeds are paid to him/her. If he/she has died then the nominated beneficiary receives the claim values, if no beneficiary was nominated or the nominated beneficiary is deceased, then the spouse claims, in the absence of a spouse, the premium payer and in their absence, it will be a person designated by AVBOB. This could be the parents, children, siblings of the deceased. If the assured on a J19 dies the claimant will be the premium payer.

If there are two policies covering the deceased and the funeral is conducted by AVBOB Funeral Service, can I receive my claim value in cash? Yes, provided the total cost of the funeral/tombstone order has been paid in full.

If you choose to use AVBOB Funeral Service, you must contact your local AVBOB representative as soon as possible so that arrangements can be made for the removal of the deceased from the place of death. Since it is required by law that all deaths must be registered, AVBOB will assist you to do so and will require the following: The Identity Document of the deceased (should the deceased not be a South African Citizen, his/her passport is required). A medical certificate completed and signed by the deceased’s doctor (AVBOB can assist in obtaining this).

Death Certificate, as well as a copy of the first page of the BI1663 (previous), or pages 1-, 2- and 3 of 3 of the BI1663 (latest) form. Policy document or schedule/certificate. Claimant’s Declaration (available at an AVBOB agency) Medicate Certificate (available at an AVBOB Agency for completion by the deceased’s family doctor) SAPS Declaration when the death is caused by unnatural causes (available at an AVBOB agency for completion by the investigating officer).

Use modern, hygienic mortuary facilities and offer a wide range of quality products such as caskets, tombstones, hearses and grave-side facilities? Yes

Arrange additional services such as catering, family cars, buses and tents and chairs at the house? Yes

Take care of all aspects of the burial and can they offer me products and services to suit my cultural and religious preferences? Yes

Offer a lay-by option on tombstones? Yes

Have compassionate, experienced staff available 24-hours a day, who can take me step by step through the whole funeral process and help me with filling out the relevant documentation, registering the death and processing funeral claims? Yes

Have more than 180 branches countrywide and can they repatriate the body of the deceased anywhere in South Africa? Yes

Can AVBOB settle claims within forty-eight 48-hours? Yes

Can I take out a loan against my policy? Yes, terms and conditions apply

Is there an option to provide cover for extended family members? Yes

Can the whole family, single-parent family or just a single person be covered? Yes

After the cost of the funeral is deducted, will the balance of the assured sum be paid out to a nominated beneficiary? Yes

Does AVBOB have special benefits and discounts for members? Yes

Do I receive company profits paid back to me as benefits? Yes

As an AVBOB member, will AVBOB's Funeral Services include:

A FREE basic funeral* if the policy is two years or older? Yes

R3 000 cash upfront for initial expenses? Yes

FREE transportation of the deceased within the borders of South Africa*? Yes

You also get a 15% addition to the sum assured on the main life which, if needed, may be converted into a six month Retrenchment Benefit? Yes

Do AVBOB Cashback members receive a AVBOB Reward Account? Yes

A FREE specified coffin? Yes

FREE use of a specified hearse? Yes

The arrangement of the funeral? Yes

The execution of the funeral? Yes

The collection and transportation of your loved one to the AVBOB mortuary? Yes

The use of AVBOB’s mortuary facilities? Yes

Graveside tent and 10 chairs? Yes

Preparation of the deceased and coffining (Preparing loved one for burial/cremation)? Yes

Assistance with the completion of all official documents? Yes

A R250 contribution to a funeral notice in a newspaper of choice? Yes

An ash coffin (where applicable)? Yes

The use of a lowering device at the graveside? Yes

Provide life insurance to anyone between the ages of 18 and 80? (at next birthday) Yes

Pay back 20% of my premiums every 5 claim free years? Yes

Pay back this 20% in cash? Yes

Provide disability benefits for loss of vision, speech, amputations, quadriplegia and paraplegia? Yes

Provide critical illness benefits for heart attacks, strokes, coronary, artery bypass grafts and cancer? Yes

Provide an optional savings benefit? Yes

Include company profits paid back to me as special bonuses and enhanced FREE funeral benefits? Yes

You can pay your AVBOB premiums at Pick n Pay, Boxer, Shoprite, Checkers, PEP or Usave stores countrywide, through Pay@ in-store payment service. Please provide your ID number and cellphone number below to obtain your policy Pay@ reference number. Present this reference number to the cashier when paying your AVBOB premium in store.

To access AVBOB’s Principles and Practises of Financial Management (PPFM), click here to download the .PDF.