oa Juta's Business Law - Cell-captive insurers
|Article Title||Cell-captive insurers|
|© Publisher:||Juta Law Publishing|
|Journal||Juta's Business Law|
|Author||J.P. Van Niekerk|
|Publication Date||Jan 2008|
|Pages||58 - 62|
It may take many years for newly evolved business methods to be tested in court. The recent decision in BMW Financial Services (SA) (Pty) Ltd v Harding (2007 JDR 0497 (C)) was, it may be thought, the first decision in which the now fairly familiar institution of cell-captive insurance and the agreement underlying it arose for consideration in court. So the judgment of Moosa J is of interest in that it provided details of a cell-captive arrangement between an insurer and its client, and it held that such an arrangement was valid and not contrary to either the Companies Act 61 of 1973 or the Short-term Insurance Act 53 of 1998 (the 'SIA').
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