AVBOB celebrates centenary anniversary with ZAR 3.5 billion benefit for members

22 August 2018

Frik

South African ICMIF member AVBOB Mutual Assurance Society has this month celebrated its 100 year anniversary. To celebrate this momentous milestone AVBOB announced plans on Wednesday 15 August 2018 to allocate ZAR 3.5 billion to their members through a new and exciting member benefit known as the AVBOB Reward Account (ARA). AVBOB is Africa’s largest Mutual Assurance Society providing a one-stop funeral insurance and burial service solution.

Frik Rademan (pictured), AVBOB Chief Executive Officer, said: “This year marks AVBOB’s 100th year in business. The ZAR 3.5 billion benefit allocation provides AVBOB members the opportunity to share in the long-term success of the Group. As a mutual society, AVBOB does not have shareholders who expect to receive dividends. We are able to share our profits with our members in the form of special bonuses and enhanced benefits – without the member incurring additional expense. This year, as part of our centenary celebrations, we decided to do something extra special for our members.”

Shaun Tarbuck, Chief Executive at ICMIF, attended the centenary celebrations and said: “My warmest congratulations to Frik Rademan and all the team at AVBOB on a fabulous achievement of 100 years of serving their members. I am delighted to have been able to attend the celebrations last week. ICMIF and I are proud to represent a mutual which has been supporting its members for 100 years. Like so many mutuals AVBOB was created out of necessity, by a small, informal group coming together to help one another. The idea was simple: each human being is entitled to a dignified funeral, at an affordable price. One hundred years later, that principle still holds true for AVBOB and from small beginnings the organisation has grown to become a household name throughout South Africa”.

Speaking about the new ARA benefit Rademan explained that this is a unique benefit which AVBOB’s members will be entitled to claim in cash after the main insured person reaches the age of 65, subject to the policy having been in force for at least 10 years*. “Every qualifying member will receive their share of the ZAR 3.5 billion that will be credited to their ARA. In the unfortunate event that the main insured person passes away prior to age 65, the full ARA balance will be paid out. Members therefore benefit from the ARA on either survival or death – which is as it should be for a member of our family,” he says.

Over the years AVBOB has increased the cover of their policyholders and members through special bonus declarations and introduced free member benefits that include a free basic funeral, free transportation of the deceased and an upfront payment of ZAR 2 500 to be spent as the families require. Money has also been allocated to create a six month premium holiday for members should they become retrenched. These benefits are over and above the cover amount and are provided at no additional expense to members.

“Turning 100 is a significant achievement that not many companies can attest to achieving and we are extremely proud to have reached this milestone. We look forward to providing our members with many more years of care and service,” Rademan concluded.

*Terms and conditions apply.

For member-only strategic content on the cooperative/mutual insurance sector, ICMIF members have exclusive access to a range of online resources through the ICMIF Knowledge Hub.

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