01 January 2017 SOUTH AFRICAN INSTITUTE OF TAX PROFESSIONALS GENERAL LEVEL MEMBER By e-mail PROFESSIONAL INDEMNITY & RELATED INSURANCES QUOTATION We acknowledge receipt of your completed membership form, the contents of which have been duly noted, and we have pleasure in confirming the following quotations: Period of Insurance

: 01 January 2017 – 31 December 2017

Retroactive Date

: 01 January 2016

Insurer

: The Hollard Insurance Company Limited

Insurance Terms 2017 Hereunder are the terms for the forthcoming Insurance period, and trust that the same meets with your approval:

Limit of Indemnity (in the aggregate) Excess (each and every claim) Premium Included in premium : Broker Commission Admin. Fee paid to Aon by Insurers

Legal Risk Management Services Fee Total Annual Amount Payable (VAT Incl.) 1 Year Retroactive Cover

Option 1

Option 2

Option 3

R5,000,000

R10,000,000

R15,000,000

R5,000

R10,000

R50,000

R440.00

R2,940.00

R6,440.00

R88.00 R28.60

R588.00 R191.10

R1,288.00 R418.60

R50.00

R50.00

R50.00

R490.00

R2,990.00

R6,490.00

Included

Included

Included

When choosing the limits of indemnity one should always take into consideration the settlement of the claim plus any costs that may arise from the defence of a claim and ensure that the limit of indemnity is adequate. Retroactive Cover: This is the date on or after which any claim made against the Insured will be indemnified in terms of the policy. This date is normally fixed as being the date on which the cover was first taken and would remain unaltered for the purposes of subsequent renewal. When cover is first taken additional retroactive cover may be offered by Insurers subject to certain conditions and premium loadings. Retroactive cover cannot be purchased after insurance has already been incepted. There will be no coverage for claims arising out of work performed prior to this date.

Aon South Africa (Pty) Ltd | Risk. Reinsurance. Human Resources. The Place, 1 Sandton Drive, Sandhurst, Sandton, South Africa | P O Box 1874, Parklands, 2121 t +27 11 944 7000 | f +27 11 944 8010 | aon.co.za Registration Number 1978/004501/07 | VAT Number 4320101498 | Authorised Financial Services Provider Licence 20555 Directors: T Williams (CEO), V Mahlangu1, NF Manyonga, Dr NB Moloele (neé Mabuya)1, NL Morwe, KH Setzin1, E van Rensburg 1 Non-Executive Company Secretary: JA Howell

You have been provided with 1 year free retroactive cover. We strongly recommend that you consider further retroactive cover if necessary, and in order to increase your retroactive cover, the total amount payable increases as follows: 2 Years Retroactive Cover (+30%) Included in premium : Broker Commission Admin. Fee paid to Aon by Insurers

3 Years Retroactive Cover (+35%) Included in premium : Broker Commission Admin. Fee paid to Aon by Insurers

R622.00

R3,872.00

R8,422.00

R114.40 R37.18

R784.40 R248.43

R1674,40 R544.18

R644.00

R4,019.00

R8,744.00

R118.80 R38.61

R793.80 R258.00

R1,738.80 R565.11

If retro cover is not purchased, then the retroactive active date of the policy will be 01 January 2016. In the event that you have been insured elsewhere, and SAIT policy now replacing such cover, then kindly provide us with a copy of your latest insurance schedule and provided that there is no break in cover, we will ensure that the same retroactive date applies on your new policy. Extensions: The following extensions form part of the above cover, at no extra cost. Please note that the indemnity limits shown below are included in the Professional Indemnity limit:

Subcontracted Duties Liability following employee dishonesty Mitigation of loss Defamation Criminal & Statutory Defence Costs Loss of Documents Fee Recovery Business Identity Theft Computer Crime Claims Preparation costs Commercial Crime Directors’ & Officers’ Liability Public Liability

Limit of Indemnity (aggregate) Same as PI policy limit selected Same as PI policy limit selected Same as PI policy limit selected R300,000 R300,000 R100,000 R100,000 R500,000 Same as PI policy limit selected R2,000,000 R500,000 R500,000 Same as PI policy limit selected

Dual Membership Where a claim is indemnifiable by the operative clause of this Insurance and the Insured is covered more specifically or primarily under another policy, then this Policy will indemnify the Insured subject to the terms and conditions of this Policy. Named Insured It is important to have the correct named insured listed on your policy, while this cover is provided for individual members practicing in their personal capacities, where you create legal entities under which name you operate, you may include the names of these entities on your cover, provided there are no more than 4 employees under such entity. This is important as the entity may be sued by a third party, not necessarily the member in person, and as such the entity must be a named insured in order for the policy to respond. Should you operate within a larger company and want your company covered, please contact Aon to discuss coverage options and quotes at preferential rates.

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Legal Risk Management Services A unique service is included and exclusively available to Aon clients, namely Legal Risk Management Services (LRMS). With a clear understanding of your professional risks, we provide legal opinions and advice, supported by appropriate knowledge of your insurance, with legal and technical experience. Our specialist risk service, provided by our dedicated team of attorneys, aims to assist you with day-to-day legal advice and contract vetting as they relate to your Profession. Some of the issues we are able to assist with: • The insurance clauses on specific contracts; • Contract provisions in relation to tender documentation; • Limitation of liability by way of time and quantum; • The legal liability that can attach to a professional should they fail to exercise their obligations strictly in accordance with the contract; and • Client driven contract conditions, clarifying points of exposure and assisting in negotiations with clients. The fee allocated to this service is indicated in your quotation terms above. For more information on LRMS please feel free to contact Siva Naidoo – Senior Legal Risk Advisor on (011) 944-8157 or e-mail: [email protected] Business Identity Theft In the event that an identity theft incident occurs the Insurer will pay towards costs to rectify the incident, utilizing Hollard Business Identity Theft support risk staff contactable on 080 SUPPORT (7877678) from Monday to Friday 08h00 to 16h30. Identity Theft is defined as: Any incident whereby the Insured Company's identifying data has been utilized to impersonate the business in order to further an identity thief's intents. Process If an identity theft incident takes place, you must call the HOLLARD SUPPORT LINE ON '080 SUPPORT' in order for a consultant to be appointed. Once a consultant is appointed, a case will need to be opened at the local police station with the assistance of the support risk staff. You will then be required to provide all necessary documentation and assistance within 30 days of contacting the Support Helpline. Identity Theft restitution cover is only available if you lodge your claim through the above process. Aon Cyber Diagnostic Tool The interactive Aon Cyber Risk Diagnostic Tool was designed to help our clients identify and consider the internal and external factors that may affect their levels of cyber risk. The tool provides meaningful insight into the most important cyber risk topics and includes practical guidance on the related governance framework that should be in place as part of an effective cyber risk management strategy. Once the tool has been completed you can expect:  Instant access to your cyber liability diagnostic report  Insight and practical considerations for a cyber-risk management program  A visual indication and summary rating for your identified cyber risks Please find the link for the Aon Cyber Risk Diagnostic Tool which is www.aoncyberdiagnostic.com and takes about 10 minutes to complete.

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NOTES: The above quotations are subject to the following: 1. The Limit of Indemnity, as reflected above, is on an “aggregated” basis with Underwriters costs and expenses included. 2. Coverage is for legal liabilities that the Insured becomes legally obliged to pay in the conduct of the business and/or profession 3. The Deductible is in respect of each and every claim and inclusive of costs and expenses. 4. Limits of Indemnity are deemed to be exclusive of Vat in terms of the Value-Added Tax Act (Act No 89 of 1991) or as amended. In settling claims the Insurer will add VAT at 14% to the VAT exclusive settlement to allow for a vendor insured’s output VAT liability under section 8(8) of the VAT Act. 5. Excess are not subject to VAT. Where an excess is expressly recovered by the Insurer from the Insured the excess in terms of the policy does not constitute a consideration as defined in the VAT Act and as such has no VAT consequence. 6. Coverage is for negligent acts or omissions in the course of the practice and is on a “claims made” basis i.e. The policy that is in force at the time the claim is made (or in place when potential claim first notified) responds to the claim. This is subject to the retroactive date as stated on the policy schedule. 7. The quotation is subject to “no known claims / circumstances” from date of proposal to date bound. 8. Cover in respect of computer viruses and date recognition phenomenon excluded. 9. Claims arising out of the hazardous nature of asbestos are excluded. 10. The policy will be an annual policy renewing on the anniversary of inception. 11. Jurisdiction: Worldwide excluding North American jurisdictions and all countries that operate under the laws of North America. 12. The Insured is obliged to notify Insurers of any change in its legal constitution and has a duty to maintain accurate descriptive records of professional services rendered. 13. All Sub-Consultants need to have their own Professional Indemnity in place, you need to review their cover on an annual/regular basis. 14. Insurers shall not indemnify and Insurers shall not be liable to pay any claim or provide any benefit hereunder where the indemnity, claim payment or provision of such benefit is contrary to the edicts, recorded principles, prohibitions or restrictions under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America irrespective of enactment in the jurisdiction where indemnity or benefit is provided or payment made. 15. Premiums quoted are ANNUAL premiums, payable in one installment and includes 14% VAT. Premiums are payable prior to renewal/inception. 16. On all services provided, Aons Terms & Conditions of Business, as amended from time to time, are applicable and can be found at http://www.aon.co.za/terms-of-trade or will be sent to you upon request. We confirm that we hold Professional Indemnity and Fidelity Guarantee insurance cover and IGF Guarantees. 17. To the fullest extent permitted by law, and except for damages resulting solely and directly from fraud or intentional misconduct by us, Aon’s liability to you for any and all damages, costs, and expenses (including but not limited to attorneys’ fees), whether based on contract, delict (including negligence), or otherwise, in connection with or related to the services (including a failure to provide a service) or any other services that we provide shall be limited to a total aggregate amount of R15 million (Aon Standard) or such higher amount which may have been agreed with you.

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DEFINITIONS: Limit of Indemnity The maximum amount the Insurer will pay for one loss. In the aggregate The maximum amount the Insurer will pay in any one year. Excess/Deductible This is the amount that the Insured pays towards any claim that might be paid by the Insurer. The excess is paid in respect of each and every claim. Costs and Expenses This refers to the Insurers costs and expenses to investigate and defend any claims that might be made against the Insured. Claims Made Wording This means that it is the policy that is in force at the time a claim is made against you that will respond to the claim and NOT the policy that was in force at the time the work was done. Therefore should the policy be lapsed or not renewed there will be NO COVER in force to respond to any claims.

INSTRUCTIONS: Kindly indicate your acceptance of the above quotation, following which your payment of premium will be processed and on receipt of payment, your policy documents will be issued. As soon as payment is received and in good order cover is in place, policy documents will be issued within 10 business days following payment.

We trust you find the above in order, however should you have any queries please do not hesitate to contact our office.

Regards

Meggyn Marot Business Unit Manager Professional Risks t +27 11 944 7914 [email protected]

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