All members of SATSA automatically receive SATSA Bonding.
What Is Bonding
SATSA's Bonding is a financial guarantee designed to provide limited protection in cases where a SATSA member ceases trading due to insolvency. It is important to note that the Bonding Scheme only applies for involuntary liquidation, is not an insurance policy, and does not guarantee a full refund to all affected parties.
Bonding refers to the SATSA Lost Advances Fund created to deal with losses incurred by any SATSA member or customer of the SATSA member as a result of that member being placed under involuntary liquidation.
These losses are defined as the amount paid for services to a service provider and/or the reimbursement of any deposits. Any loss insured by any other existing policy is excluded.
Services are defined as accommodation, travel arrangements, tour operators etc, booked by the service provider on behalf of the client for the provision of services.
The Service provider is defined as any company, excluding associated or subsidiary companies, with whom the member has entered into an agreement to provide services and may include other members.
The SATSA Bond is administered by Guardrisk Insurance Company Limited under policy number GR19/20824/671/01.
Key Points for Clarity
- The Bond is a limited fund intended to offer partial reimbursement to affected clients and suppliers.
- Claims can only be considered once the involuntary liquidation process is underway, and the final extent of liabilities is confirmed.
- The Bond amount will be paid to the lawyer managing the involuntary liquidation process. This lawyer will include the Bond amount as part of the payouts to registered creditors, including those who have filed claims with SATSA.
- The Bond does not automatically cover all losses, nor does it operate on an immediate payout basis.
- Each claim is assessed individually, and payouts are made proportionally from the available Bond fund.
Claims
- Claims are limited up to R150 000 for any one incident.
- The same amount, up to R150 000, is available per any one member’s involuntary insolvency.
- The maximum amount available for all incidents is R900,000.
How To Claim
SATSA members must be in good standing with SATSA in order to claim. This means that the yearly membership fee has been paid and that the annual review, consisting of compliance documents and an online review, has been completed. The status of SATSA members is displayed in the membership directory.
Any claims against the SATSA Bond must be brought to the attention of the SATSA Chief Operating Officer by directing an email to Hannelie@satsa.co.za.
The SATSA Lost Advances Fund Committee is responsible for the adjudication of payments and claims and as part of this will consider the length of SATSA membership per claimant. The Committee also need to follow the laws governing the liquidation process.
